Cape settles litigation with Aviva

Cape said on Monday that litigation brought against it by Aviva has been settled and the claims have been withdrawn with no admission of liability and each party bearing their own legal costs.

The company, which provides critical services to the energy and natural resources sectors, has previously disclosed that it has been involved in litigation with Aviva in relation to historic insurer employer liability claims.

"Notwithstanding the board's continued belief in the strength of its position in relation to the trial conducted in January and February 2017 and in respect of the issues to be heard at the Court of Appeal in July 2017, and thus its recovery of all legal expenses incurred, the board has concluded that it is in the best interests of Cape and its shareholders to settle this litigation."

The settlement does not require any cash consideration to be payable by the company and will require no material change in the existing provision of £172.5m as at 31 December 2016 for industrial disease claim liability related to historic asbestos activities.

At 1240 BST, Cape shares were down 0.2% to 241.50p.