Year End Trading Update
5 January 2017
Costain, the engineering solutions provider, is issuing a trading update ahead of announcing results for the year ended 31 December 2016 on 1 March 2017.
Since the announcement of its interim results on 24 August 2016, the Group has continued to perform well and expects to deliver full-year results in line with the Board’s expectations.
The Group’s unique and focused ‘Engineering Tomorrow’ strategy is successfully positioning the business to provide the range of innovative integrated services demanded by its major customers who are spending billions of pounds in the UK upgrading and renewing the country’s energy, water and transportation infrastructures.
As a consequence of its strong customer relationships, and its engineering and technology-led solutions, Costain secured a number of significant new orders and contract extensions in 2016. New contract wins during the second half of the year included the High Speed 2 South Enabling Works, the Area 14 Maintenance commission for Highways England and the Peterborough and Huntingdon compressor station upgrade for National Grid.
As a result, the Group’s order book at the year-end was maintained at the record level of £3.9 billion (31 December 2015: £3.9 billion). The Group has increased its revenues secured for 2017 to over £1.2 billion (as at 31 December 2015: over £1.1 billion secured for 2016). In addition, Costain has a preferred bidder position at over £500 million (31 December 2015: £500 million).
Reflecting the development and changing nature of the business, the Group has a total headcount at the year-end of over 4,100, which includes over 1,200 now in advisory, technology and design service roles.
Following good cash generation towards the end of the period, the Group finished the year with a strong net cash position of over £100 million.
Andrew Wyllie CBE, Chief Executive, said:
“Costain has had another strong year. Our customers are undertaking substantial investment addressing urgent national needs and we are looking forward to the future with confidence.”
Costain Tel: 01628 842 444
Andrew Wyllie CBE, Chief Executive
Tony Bickerstaff, Finance Director
Catherine Warbrick, Investor Relations Director
Sara Lipscombe, Communications Director
Instinctif Tel: 020 7457 2020