Costain Group Regulatory News (COST)

Costain Group PLC

4 June 2024

Costain secures new AMP8 Framework Agreement with United Utilities

New contract expands Costain's positions with leading water companies

Costain Group PLC ("Costain") announces that it has been selected by United Utilities PLC ("United Utilities") as one of seven partners that will deliver its new strategic investment programme.

This new programme, which expands the relationship between Costain and United Utilities, is expected to see the seven partners deliver £3bn of projects during the 2025-2030 Asset Management Period 8 (AMP8) period. The agreement also offers the potential for a further five-year extension (2030-2035).

Costain will work with United Utilities and its partners to form an integrated enterprise delivery organisation to deliver upgrades to United Utilities' complex infrastructure and non-infrastructure assets, including water and wastewater treatment sites, pumping stations and reservoirs. Costain's services will include design, construction and asset optimisation services.

As part of this strategic framework, Costain will actively engage and build strong relationships with United Utilities and other supply chain partners, to help United Utilities deliver services in an environmentally sustainable, economically beneficial, and socially responsible manner to create sustainable long-term value for all.

This contract builds on United Utilities extending its Managed Service Provider contract with Costain for AMP8 which was announced last year.

Alex Vaughan, CEO, Costain, said:

"We're delighted that this new contract win extends our relationship with United Utilities and that we can bring our leading strategic expertise to support upgrades of its critical infrastructure. This announcement builds on our growing positions with the leading water companies as they prepare for the vital AMP8 investment period.

"This appointment demonstrates our strong track record for delivering pioneering solutions, the strength of our leading water expertise, as well as our successful reputation for working in effective collaborative enterprises. It also builds on our existing Managed Services Framework with United Utilities, now in its sixth year of operation. Together, we will safeguard the supply of water and deliver committed environmental improvements.

"In addition, this work will be transformative for the local economy, increasing prosperity, creating jobs, and developing skills across the region. It also reinforces our commitment to improving infrastructure in the North-West of England, where we're already working to upgrade the region's transportation and energy networks, generating opportunities for the local supply chain and driving growth."

Enquiries:

Investors and analysts paul.sharma@costain.com

Paul Sharma, Costain +44 (0) 7867 501188

Financial media - Headland costain@headlandconsultancy.com

Andy Rivett-Carnac +44 (0) 7968 997 365

Charlie Twigg +44 (0) 7946 494 568

Notes to editors

Costain helps to improve people's lives by creating connected, sustainable infrastructure that enables people and the planet to thrive. We shape, create and deliver pioneering solutions that transform the performance of the infrastructure ecosystem across the UK's transport, energy, water, and defence markets.

We are organised around our customers, anticipating and solving their challenges and helping to improve performance. By bringing together our unique mix of construction, consulting and digital experts we engineer and deliver sustainable, efficient and practical solutions.