Trading Update
30 June 2010
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.
Ends