Trading Statement

Costain Group PLC
05 July 2007



Costain Group PLC

('Costain' or the 'Group')

Trading Update





Ahead of the Group's results for the half year ended 30 June 2007, Costain is
providing the following update on trading. Reflecting steady progress, trading
overall is in line with the Board's expectations.

  • The forward order book remains satisfactory as the Group continues to
    build on its position in its key market sectors.

  • The Group's Civil Engineering division, which accounts for approximately
    80% of the forward order book, has continued its strong performance in the
    first half.

  • Following the remedial actions put in place by management, including a
    re-alignment into key sectors, the Group's Building division has made a
    steady improvement during the period.

  • The Group's oil & gas division, COGAP, has made good progress, benefiting
    from the much greater focus on front-end design and the provision of project
    management services.

  • As previously advised, the Group continues to manage out certain legacy
    contracts and examine ways to strengthen the balance sheet in order to take
    advantage of the commercial opportunities available.

  • The performance of the Group's Alcaidesa property division in Southern
    Spain is weighted towards the second half of the year and is in line with
    expectations.


The Group's interim results will be announced on Friday, 14 September 2007.  A
presentation for analysts will take place at the offices of College Hill, The
Registry, 3 Royal Mint Court, London, EC3N 4QN at 9.30am on that morning.



                                                                     5 July 2007




ENQUIRIES:
Costain Group PLC                                             Tel: [phone]
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Public Relations

College Hill                                                    Tel: [phone]
Mark Garraway
Matthew Gregorowski




                      This information is provided by RNS
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