Trading Update for the year ended 31 December 2015
6 January 2016
Costain, the engineering solutions provider, today announces its trading update for the year ended 31 December 2015, ahead of its full year results announcement on 2 March 2016.
Since the announcement of the Group’s interim results on 20 August 2015, Costain has continued to perform well and expects to deliver full-year results in line with expectations.
The Group’s blue-chip customers continued to invest in upgrading and renewing the UK's energy, water and transportation infrastructures and, as a result, Costain continued to be awarded large scale contracts and contract extensions requiring a range of integrated services.
Consequently, the Group’s order book has further increased, finishing the year at a new record level of £3.9 billion (31 December 2014: £3.5 billion) and includes over £1.1 billion of revenues secured for 2016 (as at 31 December 2014: over £1.0 billion secured for 2015). The order book also provides good long-term visibility with £2.8 billion of revenues secured for 2017 and beyond. The strategic nature of Costain’s long-term customer relationships has once again ensured that over 90% of the order book comprises repeat business and is in target cost, cost reimbursable, collaborative forms of contract providing good long-term visibility.
As well as a record order book, Costain has also maintained a strong preferred bidder position which, as at 31 December 2015, stood at over £500 million, and the Group is actively tendering for work across all its target markets.
Costain finished the year with a strong net cash position of over £100 million. This follows significant investment in the Group’s strategic development including the £36 million acquisition in August 2015 of Rhead Group, which has already been substantially integrated and which will be earnings enhancing in 2016.
Andrew Wyllie CBE, Chief Executive, said: “Costain has had another good year. We also have good visibility over the medium-term, having finished the year with a record order book and a strong net cash position, providing confidence for the future.”
Costain Tel: 01628 842 444
Andrew Wyllie CBE, Chief Executive
Tony Bickerstaff, Finance Director
Catherine Warbrick, Investor Relations Director
Graham Read, Communications Director
Instinctif Tel: 020 7457 2020