Pre-Close Trading Update - 7 January 2014
7 January 2014
Costain, a leading UK engineering solutions provider, today announces its pre-close trading update for the year ended 31 December 2013, ahead of its preliminary results for the period which will be announced on Thursday 13 March 2014.
Since the announcement of the Group’s Interim Management Statement on 5 November 2013, Costain has continued to perform strongly and consequently expects to deliver a full-year result in line with the Board’s expectations. In addition, as announced on 20 December 2013, the Group has realised a profit of £9.1 million from the sale of its minority shareholdings in three joint venture companies to Severn Trent PLC as part of the continuing disposal of its PFI equity portfolio.
As a result of new contract wins and extensions, including the landmark AMP6 programme for Thames Water, the Hinkley Point C nuclear power station project, and a number of additional contracts for Crossrail, the Group finished the year with a high quality order book up 25% at £3.0 billion (2012: £2.4 billion) of which over 90% is repeat orders, providing good long-term revenue visibility. In excess of £750 million of work has been secured for 2014 (2012: in excess of £700 million secured for 2013).
In addition, Costain has a strong preferred bidder position on contracts worth over £400 million, and the level of tendering activity across the Group’s targeted markets remains high.
The Group finished the year with a positive net cash position.
At the period end, the Group acquired the 27% interest from its partner Serco plc in their Managed Motorway Technology joint venture arrangement for a cash consideration of £2.4 million. The joint venture arrangement, in which Costain already held the remaining 73% interest, has a place on the Highways Agency framework to deliver new technology-led highways improvements.
Andrew Wyllie, Chief Executive, commented:
“We are delighted to finish the year with a very strong order book. Our continued success is the direct result of our focus on delivering innovative engineering solutions for blue chip customers who are investing in meeting national needs.”