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The strain eases on Costain

Better contract management and a decent pipeline of work give Costain a new lease of life
The strain eases on Costain
  • Costain draws a line under its legacy contracts
  • Cash generation looks encouraging

The only certainty for infrastructure construction specialist Costain (COST) was that big, complex infrastructure projects can sometimes have unquantified levels of risk. However, having “kitchen sinked” the bad news over the past 18 months, the company was able to report a clean set of interims, free from the charges and writedowns that had severely affected its previous reported performance. While there was still no sign of a return to the dividend list, the result of all the operational housekeeping was a much better cash conversion performance.

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