Last checked at 30 Jun 2010 07:00
Costain Group PLC
("Costain" or "the Group")
Trading update
Costain, which will announce interim results for the six months ended 30 June 2010 on Wednesday 25 August 2010, is issuing the following trading update ahead of entering its Close Period.
Since the announcement of the Group's Interim Management Statement on 6 May 2010, the Group has continued to perform in-line with the Board's expectations.
Costain has again demonstrated its resilience in an uncertain economic environment.
The Group's operations continue to benefit from its strategy to focus on targeted blue chip customers whose major spending plans are underpinned by strategic national needs, regulatory commitments or essential maintenance requirements in chosen sectors. In this regard, it is encouraging that the Government has recently reiterated its commitment to maintain investment in key major infrastructure schemes.
In line with its strategy, the Group has recently amalgamated its Environment and Community activities into a single enlarged division, which will focus on new opportunities particularly in the water and waste markets and meeting the needs of their existing long-term customer relationships. Its Infrastructure and Energy & Process divisions will continue to target opportunities in their markets.
As a result of a number of significant new contract awards since the beginning of the year, the Group has a forward order book of £2.5 billion. Circa £1.0 billion of work has been secured for 2010. In addition, the Group has Preferred Bidder positions of over £500 million.
The Group has maintained its strong net cash position of in excess of £100 million, and has no significant borrowings.
The Group will today and tomorrow host a site visit for analysts to its operations, which will include the major M1 Junction 10 - 13 managed motorway project, and the UK's largest waste to energy plant being constructed at Belvedere.
No new material information will be disclosed and all presentations will be posted on the Group's web site at www.costain.com.
30 June 2010
Enquiries:
| Costain | Tel: 01628 842 444 |
| Andrew Wyllie, Chief Executive |
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| Tony Bickerstaff, Finance Director |
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| Graham Read, Communications Director |
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| College Hill | Tel: 020 7457 2020 |
| Mark Garraway |
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| Adam Aljewicz |
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Notes to Editors
Costain is an international engineering and construction group with a reputation for technical excellence founded on more than 140 years of experience. The Company's business segments are in Infrastructure (Highways, Rail, Nuclear and Airports), Environment (Water, Waste and Marine), Community (Health, Education and Retail), Energy & Process and Property Development.
The Company is focused on market sectors where it expects there to be a significant investment over the next few years and where it can build and maintain strong positions.
It has worked on a number of significant infrastructure projects in the UK, including the St Pancras railway station and the Channel Tunnel Rail Link, and is currently working on a number of significant projects including the municipal waste treatment infrastructure for the Greater Manchester Waste Disposal Authority and EVAP D at Sellafield, one of the largest nuclear projects in the UK.