(Alliance News) - Costain Group PLC announced on Monday its full-year trading is in-line with expectations but suffered a share price fall as it said it will part with over GBP50 million in relation to a cancelled National Grid PLC contract.
The Maidenhead-based infrastructure construction company said that its full-year adjusted operating profit is expected to be in line with market expectations. In 2020, Costain reported an adjusted operating profit of GBP18.0 million.
Year-end net cash is expected to be ahead of market expectations at around GBP100 million. At the end of 2020, net cash stood at GBP104.1 million.
Less positively, Costain added that under the terms of a termination agreement, it is expected to make a GBP53.5 million payment to National Grid. The payment is expected to be made in January, and Costain said there would be an associated charge to the income statement for the current financial year, reflecting the payment.
In June 2020, the duo agreed to exit a contract to upgrade National Grid's Peterborough and Huntingdon compressor stations. Costain was released from its contractual obligations to complete the works.
Costain said that its full-year 2021 result will be announced on March 9.
Shares in Costain were down 4.8% at 49.20 pence each on Monday afternoon in London.
By Heather Rydings; heatherrydings@alliancenews.com
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