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Costain building earnings growth

Costain weathered headwinds from the oil and gas sectors well during the first half
August 21, 2015

Engineering consultancy Costain (COST) was buoyed by its infrastructure division during the first half, boosting the group's adjusted operating profit by almost a fifth to £13.1m. This growth is all the more impressive considering the £7.4m operating loss booked by the group's natural resources division, which was burdened by costs linked to a legacy PFI contract for the Greater Manchester Waste Disposal Authority.

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The group has continued with its focus on lower-risk contracts that service the country's infrastructure, energy and water supply needs. Costain's order book reached a record £3.7bn, more than 90 per cent of which is comprised of repeat work. In infrastructure the group increased its order book by more than a fifth to £2.7bn. The group secured extensions and new work with Highways England, including two of the three lots of the A14 programme.

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