Infrastructure projects fuel Costain results
By Helen Wright23 August 2012
Despite challenging market conditions, UK-based contractor Costain reported a 2% year-on-year rise in revenues for the first six months of 2012 to £478 million (€604 million), and a 16% increase in operating profit to £10.7 million (€13.5 million).
Costain's order book at 30 June, 2012, also increased to £2.4 billion (€3 billion) compared to £2.3 billion (€2.9 billion) at the same point in 2011. The contractor said this represented £600 million (€759 million) of revenue secured for 2013, and a further £1.4 billion (€1.8 billion) for 2014 and beyond.
The company's infrastructure division was a strong driver behind the results. It reported a 27% year-on-year increase in revenues to £279.5 million (€353 million), while the order book increased to £1.5 billion (€1.9 billion) from £1.1 billion (€1.4 billion) at 30 June, 2011.
As well as being a leading supplier to the UK Highways Agency, Costain has also secured five Crossrail contracts from the UK government.
Costain chairman David Allvey said, "We will continue to grow the business both organically and by targeted acquisition. Our acquisition strategy will be the key driver of the addition of further high-quality support service related activities to the group's portfolio."