Trading Update

RNS Number : 9330K

Costain Group PLC

06 January 2016

 

Costain Group PLC

('Costain' or 'the Group')

 

Trading Update

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."

6 January 2016

 

Enquiries:

Costain	Tel: [phone]
Andrew Wyllie CBE, Chief Executive
Tony Bickerstaff, Finance Director
Catherine Warbrick, Investor Relations Director Graham Read, Communications Director
Instinctif	Tel: [phone]
Mark Garraway
Helen Tarbet

 

END

 

 

TSTUVABRNKAARAR