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Last checked at 
7 May 2014 07:00
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Costain Group PLC
("Costain" or "the Group")
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Interim Management Statement
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Costain, one of the UK's leading tier one engineering solutions providers, delivering integrated consulting, project delivery and operations and maintenance services, announces its Interim Management Statement covering the period from 1 January 2014 to the current date. The Group is holding its Annual General Meeting later today.
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Update
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The Group has made a strong start to the current year and is performing in line with the Board's expectations.
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As a result of the implementation of its 'Engineering Tomorrow' strategy, Costain is continuing to secure new work from major blue-chip customers who are investing billions of pounds in capital, operations and maintenance contracts and who require increasingly innovative solutions to solve their complex requirements.
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Costain's major customers continue to consolidate their supply chains as they seek to work in a more strategic and collaborative manner with a reduced number of tier one engineering solutions providers. This is reflected in the following contracts secured since the start of the year:
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- Appointed to the Network Rail Β£2 billion National Electrification Programme, with the contract worth an initial Β£900 million over seven years to the Group's joint venture.
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- As part of the multi-billion pound Crossrail programme, a contract from Network Rail, worth an initial Β£150 million to Costain, to deliver the infrastructure and stations between Stratford and Shenfield.
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- Appointed by National Grid to three frameworks as part of their overall investment, to 2021, of approximately Β£2.5 billion on new electricity transmission lines and cables and Β£6.9 billion on upgrading gas transmission infrastructure.
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Order book
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As a result of new contract awards and extensions the Group's high-quality forward order book has further increased to a new record level of Β£3.2 billion (31 December 2013: Β£3.0 billion), of which over 90% is from repeat orders.
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In addition, the Group maintained its preferred bidder position at over Β£400 million (31 December 2013: over Β£400m).
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To date, over Β£900 million of revenue has been secured for 2014 (31 December 2013: over Β£750 million).
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The overall level of tendering activity across the Group's targeted markets is high.
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Financial position
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On 18 March 2014 the Group completed the Β£70.3 million (net of expenses) capital raise enabling Costain to take greater advantage of the opportunities in its chosen markets and accelerate the Group's medium and long term prospects.
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The Group continues to benefit from a robust financial position with a strong net cash position in line with expectations.
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Outlook
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Costain is well positioned in a developing market of a limited number of providers who can deliver the innovative integrated consulting, project delivery and operations and maintenance services increasingly demanded by major customers.
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With increased financial resources, a record order book and a strong pipeline of opportunities, the Board remains confident of meeting its expectations in 2014.
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7 May 2014
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Enquiries:
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Costain | Tel: 01628 842 444 |
Andrew Wyllie, Chief Executive | |
Tony Bickerstaff, Finance Director | |
Graham Read, Communications Director | |
Instinctif Partners | Tel: 020 7457 2020 |
Mark Garraway | |
Helen Tarbet |
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