Times are tough in the construction world, with investment decisions being put on hold, but there is still business to be won - especially non-discretionary work such as maintaining buildings, nuclear reactors and key infrastructure such as wastewater treatment facilities.
- Debt-free; large cash pile
- Switch in emphasis to non-discretionary work
- Assured revenues
- Attractive dividend yield
- Spanish operation lossmaking
- Environment services income down
And Costain has adopted an all-encompassing business model that offers a cradle-to-grave service which includes engineering design, consultancy, construction and maintenance all wrapped up in one contract. Customers seem to like this. Notable successes include St Pancras railway station and the Channel tunnel rail link, with current projects, such as rebuilding London Bridge railway station and work on the nuclear site at Sellafield, providing plenty of guaranteed revenues.
