Trading Update - 30 June 2010
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.