Contractor’s pre-tax profit for first six months rises 19% as it builds on rail and highway contract wins

Costain has boosted turnover by 5% from £508.2m to £533.4m in the six months to 30 June 2010 as the group benefits from the relatively strong UK infrastructure market

Pre-tax profit rose by 19% from £6.9m to £8.2m while its net cash position improved from £119m to £134m.

The company said: “Costain has again delivered a good result for the first half of the year. It is testimony to the group’s strategic focus and leading market positions that, in one of the most testing economic environments, Costain continues to deliver a strong operational and financial performance.”

Its order book has held steady at £2.5bn compared to the end of June 2009 and its wins in the first six months of this year include a five-year £115m joint venture maintenance Managing Agent Contract (MAC) for the Highways Agency and a place on Crossrail’s four-year £100m advance works civils framework work for Crossrail.

A company statement added: “Whilst challenging market conditions are set to continue for the foreseeable future, the board expects to report continued progress at the year-end in line with its expectations.”

Divisional performance:

Infrastructure

Turnover £223.8m (2009: £164m)
Operating profit £8m (£6.8m)

Environment

Turnover £246.7m (£301.1m)
Operating profit £1.2m (2.6m)

Energy and Process

Turnover £62.4m (£42.5m)
Operating profit £3.1m (£2.7m)

Land Development

Turnover £500,000 (£600,000)
Loss after tax £500,000 (£700,000)

 

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