Interim Management Statement

RNS Number : 9657F

Costain Group PLC

05 May 2011

 



Costain Group PLC

("Costain" or "the Group")

AGM and Interim Management Statement

Costain is issuing, ahead of its AGM to be held later today, an Interim Management Statement covering the period from 1 January 2011 to the current date.

Overview

Following on from its strong performance in 2010, and despite well-publicised uncertain market conditions, the Group is continuing to perform well and trading is in line with the Board's expectations. 

The Group is successfully implementing its "Choosing Costain" strategy, building the Group into one of the UK's top solutions providers and focussing on work for blue chip customers whose major spending plans are underpinned by strategic national priorities, regulatory commitments or essential maintenance requirements in chosen sectors.

In April 2011, the Group announced the acquisition of ClerkMaxwell Limited, an Aberdeen-based front-end engineering and operations support services provider operating in the upstream oil & gas sector, for £3.2m in initial cash consideration. This acquisition is indicative of how, under the "Choosing Costain" strategy, the Group is broadening its service offering, in this case enhancing and complementing the Group's capabilities in its existing oil and gas operations.

Order book

The Group has continued to secure significant new contract awards since the beginning of the year, and as a consequence currently has a robust order book of £2.3 billion. In addition, it has preferred bidder positions of over £400 million.

To date over £850 million of revenue has been secured for 2011.

Since reporting the preliminary results in March, the level of tendering activity in the Group's targeted markets of Infrastructure, Environment and Energy & Process has remained high.  

Financial Position

There has been no material change in the financial status of the Group, which continues to have a strong cash position of in excess of £100 million, and has no significant borrowings.

Outlook

With trading in line with the Board's expectations, a strong cash position and  ongoing delivery on its stated strategy, through a combination of organic growth and  selective acquisitions where suitable earnings-enhancing opportunities arise, the Board is confident of further progress in 2011.

Enquiries:

Costain	Tel: [phone]
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Communications Director
College Hill	Tel: [phone]
Mark Garraway
Helen Tarbet

 

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