Interim Management Statement (4)
6 November 2012
Costain, the engineering solutions provider, today issues its Interim Management Statement covering the period from 1 July 2012 to the current date.
Following its strong performance in the first half of 2012, the Group is continuing to perform well, in line with the Board's expectations.
The Group’s strategy is to focus its resources on meeting the integrated service requirements of major customers, whose spending plans are underpinned by national needs, regulatory commitments or essential maintenance requirements and who are continuing to invest significantly in those requirements. The Group’s strong relationships with its customers are underlined by the fact that over 90% of the Group’s forward order book is made up of repeat orders.
During the period the Group has secured further contract awards and extensions including an appointment by Magnox to a framework contract worth around £288 million over a ten year period for the delivery of construction, infrastructure and maintenance projects across all ten sites operated by Magnox on behalf of the Nuclear Decommissioning Authority.
Costain continues to expand its support service related activities, both organically and by benefitting from the capabilities secured through the acquisition of two businesses last year. Currently 28% of revenues secured for 2012 comprise support service activities and this is expected to continue to grow.
The Group’s forward order book currently stands at £2.4 billion. As well as including over £650 million of revenues secured for 2013 the order book also provides good long-term visibility with circa £1.6 billion of revenues secured for 2014 and beyond, the balance of the order book being for the remainder of 2012.
The Group has also maintained a strong preferred bidder position of c. £400 million.
The overall level of tendering activity across the Group's targeted markets remains high.
There has been no material change in the robust financial status of the Group, which continues to have a strong net cash position and no significant borrowings.
Costain is meeting the integrated service requirements of major customers, who are continuing to invest in essential infrastructure projects. Despite the on-going challenging economic conditions, Costain remains on course to deliver a result for the year in line with the Board's expectations.
6 November 2012
Costain Tel: 01628 842 444
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Communications Director
College Hill Tel: 020 7457 2020