Results for the half-year ended 30 June 2021
PRESS RELEASE
25 August 2021
Costain, the smart infrastructure solutions company, announces its results for the half-year ended 30 June 2021.
Highlights
- Improving profitability. Operating profit2 of £11.5m (HY20: £5.7m), in line with the Board's expectations
- Operating effectively with contracts delivering to plan
- Continued momentum with £334.3m of new work secured and clear bidding discipline and risk management in place
- High level of tendering activity reflecting the significant market opportunity
- Positive cash generation and strong cash position. Net cash of £113.0m, up from £102.9m at year end
- Broadening our decarbonisation expertise across Transportation, Water and Energy
- On course to deliver full year results in line with our expectations.
Summary financials
| H1 2021 | H1 2020 | FY 2020 | |
| £m | £m | £m | |
| Revenue | |||
| · adjusted1 | 556.8 | 547.3 | 1,070.5 |
| · statutory reported | 556.8 | 459.9 | 978.4 |
| Operating profit/(loss) | |||
| · adjusted2 | 11.5 | 5.7 | 18.0 |
| · statutory reported | 11.2 | (90.4) | (92.0) |
| Profit/(loss) before tax | |||
| · adjusted2 | 9.4 | 3.8 | 13.9 |
| · statutory reported | 9.1 | (92.3) | (96.1) |
| Net cash balance3 | 113.0 | 140.9 | 102.9 |
| Basic earnings/(loss) per share | |||
| · adjusted2 | 2.8p | 2.1p | 5.8p |
| · statutory reported | 3.5p | (49.9)p | (36.7)p |
1. HY20 before revenue impact of significant contract provision adjustments of £87.4m (FY20: £92.1m) (see financial statements note 3).
2. Before net other items of £0.3m (HY20: £1.4m and significant contract provision adjustments of £94.7m, FY20: £10.3m and significant contract adjustments of £99.7m) (see financial statements note 3).
3. Net cash balance is cash and cash equivalents less interest-bearing loans and borrowings (before arrangement fees of £1.0m in HY21).
Alex Vaughan, chief executive officer, commented:
"We are pleased to report an improved level of profitability and a strong cash position, demonstrating the focus on trading performance and cash generation across the business.
"We continue to be successful in winning new contracts, building on last year's strong platform and making the most of the significant market opportunities. Our clients across all our chosen markets are continuing to progress their investment plans and to prioritise investment to meet their needs for decarbonisation, digitisation, levelling up and performance improvement.
"We are busy bidding for new work across all of our markets, combining Costain's core strengths and our broader service offering in line with our strategy. Importantly, we are being selective in our approach to tendering, focussing on bidding discipline and risk management.
"We have good visibility on the completion of contracts for the remainder of this year which gives us confidence in delivering full year results in line with our expectations."
Enquiries:
Costain
Tel: 01628 842 444
Alex Vaughan, Chief executive officer
Helen Willis, Chief financial officer
MHP Communications
Tel: 020 3128 8771
Tim Rowntree
Peter Hewer
Robert Collett-Creedy
There will be a live online presentation for analysts today at 09:45. To register your attendance please contact [email protected]
An on-demand webcast will be available via www.costain.com/investors from 11:30 today.