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Costain orders up 20% despite profit dip

Costain's has seen its pre-tax profit for the first six months of this year plummet. The group's adjusted pre-tax profit was £8.4M, down from the £16.3M reported for the same period in 2012.

Costain is "well positioned" to secure new contracts or extensions in the water sectorCostain is "well positioned" to secure new contracts or extensions in the water sector

Group turnover was down from £477.9M to £462.9M this year. However, the group said its forward order book for the half year has risen 20% to £2.9B, and 90% of the order book relates to repeat orders.

Costain's Natural Resources division, which incorporates its water activities, reported a drop in revenue to £199.2M this year. The restructured division has already seen some early success with its order book increased to £1.2B, and the group said the level of tendering activity is also increasing, reflecting the timing and attractiveness of sector opportunities.

During the first half, Costain was awarded a £450M contract with Thames Water, which was secured in joint venture. The group said it is "well positioned" to secure new contracts or extensions during a Regulatory Review cycle that "is expected to require a more integrated service delivery".

Costain is engaged in several ongoing AMP5 framework contracts with Northumbrian Water, Severn Trent, Southern Water, United Utilities and Dwr Cymru Welsh Water.

Author: Maureen Gaines, Editor, WET News Find on Google+
Topic: Contractors
Tags: Financial results , water companies , AMP6 , AMP5

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