Firm also reports dramatic increase in pre-tax profit as its one off costs tumble in the first half of 2014
Contractor Costain has reported a 87% leap in pre-tax profit for the first half of the year, with a record order book of £3.2bn.
In its results for the six months to 30 June 2014 the firm reported a pre-tax profit of £5.8m, up from £3.1m over the same period last year.
It also reported a rise in revenue to £529m, up from £462m.
The jump in pre-tax profit was dramatic because Costain did not incur as many exceptional costs in the first half of 2014 as it did in the first half of 2013.
In 2013 it incurred £3.7m of costs related to its failed attempt to buy May Gurney Integrated Services and a further £1.6m in amortization and employment costs.
However, in 2014 it incurred just £3.3m in employment, amortization and finance costs.
When these costs were taken out of the figures Costain reported a pre-tax profit of £9.1m in the first half of 2014, up from £8.4m in the first half of 2013.
Costain also reported that its forward order book had increased by 10% reaching a new record level of £3.2bn at 30 June 2014, up from £2.9bn at that time last year.
David Allvey, chair of Costain, said the firm had “established reputation for innovation that enables the Group to win large, long term contracts”.
He added: “The successful capital raise earlier this year is enabling us to take advantage of a growing number of opportunities to accelerate the group’s development.”
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