7th Jan 2014 08:34
LONDON (Alliance News) - Costain Group PLC Tuesday said it has continued to perform strongly since November as it finished the year with an order book up 25% on last year, boosted by a number of profitable new contract wins and extensions.
The infrastructure group, which was a awarded a GBP100 million contract to build the M6 Heysham link road by Lancashire County Council in December, said its order book was valued at GBP3.0 billion at the end of 2013, up from GBP2.4 billion in 2012.
Costain said in excess of GBP750 million of work has been secured for 2014 compared with GBP700 million for 2013.
The group also said it had realised a profit of GBP9.1 million from sale of minority shareholdings in three joint venture companies to Severn Trent PLC last month, as part of the continuing disposal of its private finance initiative equity portfolio.
In addition, Costain said it has a strong preferred bidder position on contracts worth over GBP400 million, while the "level of tendering activity across the group's targeted markets remains high."
At the period end, Costain acquired, for GBP2.4 million, the 27% interest from its partner Serco Group PLC in their managed motorway technology joint venture.
The joint venture arrangement, in which Costain already held the majority 73% interest, has a place on the UK Highways Agency framework to deliver new technology-led highways improvements.
Costain said it finished 2013 with a positive net cash position.
Costain shares were up 1.7% at 288.83 pence early Tuesday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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