01/09/2004
Engineering and construction group Costain is resurrecting its once-solid reputation in the industry: its pre-tax profits improved by 33% to £8.1m during the interim period to June, and turnover improved 15% to £339.9m. Focusing on the water, healthcare and transport sectors, the company has just been awarded two further frameworks from Yorkshire Water and Thames Water for the forthcoming 'asset management period four' (AMP4), commencing in April and worth £75m per year for five years with options to go to ten years. Finance director Charles McCole told GCI that Costain has historically had between three and five of the AMP contracts, but is now in the process of bidding for eight of the ten contracts available. The remaining six should be decided in the next three to four months. On the building side, the company has £350m worth of business under negotiation, and is eyeing private finance initiative (PFI) projects such as Kingston Hospital. Other PFIs underway include the £38m Sirhowy Enterprise Way project to improve roads in South Wales. Internationally, Costain has increased its shareholding in Costain (West Africa) to 36%. An alliance with Chinese construction company China Harbour was formed to target marine-related projects on a worldwide basis (Costain is currently working on the extension at super port Felixstowe). The company has no debt and net cash balances of £65.7m. Broker Arbuthnot predicts sales of £725m and has increased its previous pre-tax profit estimate of £16.3m to £18.5m.
| Market cap: | £146.7m |
| PE Forecast: | 10.4 |
| Share price: | 46.25p |
| LSE | £125.09m |
19.75p
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0.50p
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| Other company articles: |
| 28/04/2008 |
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| 17/03/2008 |
| 01/09/2004 |
| 02/07/2004 |
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