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(Alliance News) - Costain Group PLC on Thursday confirmed media reports that it will no longer be involved in the National Highways' A66 Northern Trans-Pennine scheme.
National Highways is a government-owned company charged with operating, maintaining and improving motorways and major A roads in England.
The construction and engineering firm said that, due to a change in contracting strategy, it has agreed with National Highways that its involvement in the A66 scheme will come to an "organised and managed end".
Shares in Costain ended 11% lower at 47.90 pence on Thursday in London.
The company confirmed that it will continue work on the A12 Chelmsford to A120 widening project, supporting the delivery of the project's development consent order application and delivering a package of enabling works for the scheme.
Costain explained that as the A66 project was included in its preferred bidder book, the decision has no impact on its order book. It added that the overall value of its order book is broadly unchanged from GBP2.8 billion as announced at its full-year results in March.
A National Highways spokesperson said: "National Highways and Costain have agreed to a change in contracting strategy, which will see Costain's involvement on the A66 come to an organised and managed end. We would like to thank Costain for their work during the development phase of one of our most significant and complex projects."
By Heather Rydings, Alliance News senior economics reporter
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