Cape receives bid approach

The approach may or may not lead to an offer, it said in a brief statement.

The group, which has its UK operations in Wakefield, said it had noted the recent rise in its share price.

Shares in Cape, which provides insulation, industrial cleaning and training services to the energy and mineral resources sectors, jumped 13 per cent on Thursday to 227.5p, valuing the group at 264m.

Last month Cape said it had made a solid start to the year with strong trading in the Far East offsetting a slowdown in the Middle East.

Cape said activity levels in the Far East and Pacific Rim region were "materially ahead" of 2009, offsetting lower activity in the Gulf and Middle East.

Chief executive Martin May said: "Cape has made a solid start to the year. With project cycles varying from region to region, the benefit of our scale and leading positions across our international footprint has again been evident."

He said that plant safety is of primary importance for the group's customers.

"With Cape's best in industry safety programmes already recognised with several prestigious awards this year, this continues to set us apart from the competition."

Cape, which is listed on AIM, is thought to be considering a move to the main market.