Costain on course to deliver expectations
Costain has delivered a 39% increase in pre-tax profit to £16 million in the first half of the year.
The engineering group, which deploys technology-based solutions to meet national needs across the UK’s energy, water and transportation infrastructures, announced continued strong performance and a 10% interim dividend increase.
For the six months to 30th June 2017, the group generated total revenue of £874.5m, an increase of 11% on the previous year.
Underlying operating profit increased by 34% to £21.2m (2016: £15.8m) while the order book stood at £3.7 billion, down from £3.9bn a year before.
The Infrastructure division, which operates in the highways, rail and nuclear markets, delivered saw its revenue (including share of joint ventures and associations) increase to £694.1m (2016: £613.2m) but operating profit (before other items) dipped to £24.8m (2016: £27.4m). The squeezed margin was attributed to “the timing of returns across a range of contracts, together with the high level of bid costs in the period”.
The natural resources division, covering water, power and oil and gas, improved its performance to get losses down to £1.1m compared with an £8.4m loss in the same period last year.
Andrew Wyllie CBE, chief executive, said: “We delivered another strong performance in the first half of the year with 34% growth in underlying operating profit and a 10% interim dividend increase.
“We are transforming rapidly to differentiate Costain as the UK’s leading smart infrastructure solutions company. We are delivering technology-based solutions demanded by our clients who are spending billions of pounds, underpinned by legislation and regulation, to meet ever more complex challenges to enhance the nation’s infrastructure.
“Costain is on course to deliver results for the year in line with the Board’s expectations.”