Costain reports strong first quarter results

Source: Construction Digital

Date :09/05/2008 14:29:17

Costain, the international construction group, has continued to perform ‘in-line’ with its expectations during the first quarter of this year, following a strong result in 2007.

The company has secured new orders and preferred bidder positions during the period and has increased its forward order book by nineteen percent to £1.9 billion. The group’s preferred bidder position has grown significantly to in excess of one billion pounds.

Strategic focus

The group reported that Civil Engineering, which incorporates infrastructure and environment-related activities, has made an encouraging start to the year.

In Infrastructure, the division secured a major contract on the A14 in Cambridgeshire, and an advance works contract at Farringdon Station as part of the Thameslink Capacity Enhancement Project in north London.

Earlier this week, Costain won a five year extension to its AMP4 contract for Southern Water, giving the group early visibility of a major earnings stream from 2010 through to 2015.

On January 1 this year, David Allvey became Chairman following David Jefferies’ retirement and, in the same month, James Morley joined the Board as a non executive director.

The group’s strategic focus is on blue chip customers who are expected to continue implementing their long-term investment programmes despite the current market uncertainty.

May 09, 2008