Costain reports encouraging start to year

UK engineering and construction firm Costain has reported a 20% increase in backlog to £2.9 billion (€3.4 billion), following the signing of contracts worth more than £900 million (€1 billion) during the first half of 2013.

New business included the £450 million (€525 million) AMP6 programme for Thames Water, accounting for Costain’s share of a landmark £1.2 billion (€1.4 billion) contract secured in a joint venture.

The firm also signed a £300 million contract, in a joint venture, to design, fit-out and commission the railway systems for Crossrail.

New business took the forward order book up to £2.9 billion (€3.4 billion), an increase on the second half 2012 figures of £2.4 billion (€2.8 billion), with more than 90% of the order book comprising of repeat orders.

The company also announced a 3% growth in underlying profit to £10.7 million (€12.5 million), up from £10.4 million (€12.1 million) as at the end of June 2012.

Revenue, including the group’s share of joint ventures and associates, for the half-year ended 30 June, 2013, was £462.9 million (€540 million), down on 2012 figures of £477.9 million (€557 million).

David Allvey, chairman of Costain, said, “This was an encouraging start to the year with a 20% increase in our order book and an increase in underlying operating profit, against a backdrop of market conditions which continue to be challenging.

“Costain is building its order book by generating, through its commitment to Engineering Tomorrow, innovative integrated service solutions for major customers who are continuing to invest to address essential national needs.”