Trading Update
7 January 2010
Costain, which will announce preliminary results for the
year ended 31 December 2009 on Wednesday 10 March 2010, is issuing
a trading update ahead of entering its Close Period.
Trading during the final quarter of 2009, and consequently for
the year as a whole, remained in-line with the Board's
expectations.
The Group's operations continued to benefit from the deliberate
focus on targeted blue chip customers whose major spending plans
are underpinned by strategic national priorities in chosen sectors.
Costain has a proven scale and capability to deliver complex
solutions to major customers and as a result has entered 2010 with
a strong order book and pipeline of opportunities.
As at 31 December 2009, the Group's Forward Order Book had grown
to £2.6 billion, a 30% increase on the previous year (2008: £2.0
billion). Whilst we believe that market conditions will remain
uncertain in 2010, the Order Book includes over £850 million of
work secured for 2010, ahead of the position for 2009 at this time
last year.
The order book has benefited from a number of major contract
awards during the year, including:
- five-year AMP 5 water frameworks
for Severn Trent and United Utilities;
- the major Evaporator D nuclear project at Sellafield;
- the Midlands Works Contract 4 and five-year MAC 12 Highways
contracts reflecting the Group's strategic growth in maintenance
activity;and
- the Manchester Waste contract, part of Europe's largest waste
project.
In addition, the Group has preferred bidder positions of over
£400 million reflecting success in converting previous preferred
positions into firm orders.
The Group maintained its strong cash position significantly in
excess of £100 million.
Andrew Wyllie, Chief Executive, commented:
"Costain continues to differentiate itself as a
result of its strategic focus on customers who are expected to
continue with their major investment programmes despite the current
economic environment. We have a significantly increased order book,
a strong cash position and an ongoing rigorous management of
costs."
Ends