Costain has posted higher profits for the first half on the back of improved margins and a better product mix and has launched a £10m share buyback programme. The construction and engineering firm made an adjusted operating profit of £16.3m for the six months to 30 June 2024, up 8.7% on last year, with its adjusted operating margin rising by 20 basis points to 2.5%. Looking ahead, Costain said it was on course to hit its margin targets over 2024 and 2025 of 3.5% and 4.5%, respectively. Costain shares added 2.5% by around 9am.
Mobico, the transport operator formerly known as National Express, has maintained its full-year guidance after a jump in adjusted first-half operating profit driven by good demand and cost-cutting. Profit for the six months to June 30 rose by 23.8% to £71.2m, while on a pretax basis the company narrowed its losses to £1.5m from £52m a year earlier. No dividend was declared as the group continues to deleverage. The firm said it still expects adjusted operating profit for 2024 to be within the range of £185m to £205m. Mobico shares jumped 15% in early trading.
Watkin Jones warned that market activity through the summer has been slower than anticipated, principally due to continued uncertainty over the pace of interest rate cuts. In a full-year trading update, the build-to-rent developer said that, as a result, it now believes it is unlikely that it will close any further transactions before the financial year-end on 30 September 2024. As a consequence, the company added, the lower number of transactions will have an impact on results in its 2025 financial year. Watkin Jones’ shares plunged 29% by around 9am.
Headlines we expect on Thursday
Hays Final results
Last time out Net fees £1,294.6m, pretax profit £192.1m, net cash £135.6m
Partners Group PE Interim results
Last time out NAV total return of 3.5%, including first interim dividend of EUR 0.365 per share
