Costain hits record levels on forward orders

The contractor secured approximately £900M of new work during the first half of 2008 including the extension of its Southern Water AMP4 contract to 2015, redevelopment of Farringdon Station as part of the Thameslink upgrade and the expansion of Felixstowe container port, plus further work on the M25.

Its fine form for the six months to 30 June 2008 was capped by its pre-tax profits rising to £10.1M, up 26% from £8M during the same period last year. Revenue was £467.5M, up from £430M in the first half of 2007.

"We believe that, despite the current economic environment, our targeted blue-chip customers, in particular those in the public sector and regulated industries, will continue with their investment programmes," said Costain chairman David Allvey.

"Therefore, Costain, with a strong cash balance and a record order book, is in a good position to continue to deliver growth in line with our expectations."

Despite the group's overall growth, Costain's civils business saw its first half turnover stagnate at £280.4M. However,its operating profit during the first six months of 2008 rose to £11.8M, up from £10.1M for the first half of 2007.

"Whilst revenues were at the same level as last year, operating profits were significantly improved reflecting an excellent performance in markets where Costain has strong positions and where we secured a higher number of project bonuses than last year for contracts completed ahead of schedule," said Costain chief executive Andrew Wyllie.

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