Costain Group Share News (COST)

Engineering solutions provider Costain has said it is on target to meet its full-year guidance after performing well in the year-to-date, following a strong performance in 2011.The firm said that is has undergone "significant and ongoing transformation" as a result of the implementation of its strategy to build the group into one of the UK's top engineering solutions providers, delivering services for blue-chip customers whose major spending plans are underpinned by strategic national priorities, regulatory commitments or essential maintenance requirements in chosen sectors.This has seen the company broaden its skills and capabilities across the full asset life cycle its customers require, enabling it to broaden the business itself. So far this year the company has secured £800m of revenue for 2012, 25% of which comes from support services activities, a percentage the company believes will continue to grow. The order book currently stands at £2.4bn, of which over 90% is repeat orders from our blue chip customers. In addition, the group has preferred bidder positions of around £400m. The firm was keen to emphasise that it has a net cash position of more than £100m and no significant borrowings. In a statement the company said: "Whilst market conditions remain uncertain, the group has strong financial resources and is delivering on its clear strategy. Accordingly, the board remains confident of meeting its expectations in 2012 and is committed to delivering its ambition of doubling profits in the medium term." "Costain had a solid 2011, when others struggled and today's statement installs some confidence that 2012 should be another year of progress at the operating level," said analyst Andrew Gibb from Investec.The share price rose 2.61% to 206.25p by 13:08.NR