Half Year Results 

Costain looks for leading edge

Costain looks for leading edge

On the back of a profit warning at the end of June, investors were probably braced for some uncomfortable reading amidst Costain’s (COST) half-year results. Hampered by the previously announced contract delays and cancellation of the M4 corridor project, underlying operating profit fell by 9 per cent to £21.2m for the six months to 30 June. With a larger impact anticipated in the second half, full-year guidance of £38m-£42m would be down by around a quarter from the £52.5m reported for FY2018. Meanwhile, statutory earnings have been weighed down by a £9.7m exceptional charge relating to the cost of previous remedial works where the sub-contractor went into administration.

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