7th May 2014 07:34
LONDON (Alliance News) - Construction giant Costain Group PLC Wednesday said it has made a strong start to 2014 and is performing in line with expectations, following a number of contract wins.
In an interim management statement for the period January 1 to date, the engineering and construction group said that, as a result of its Engineering Tomorrow strategy, it is continuing to secure new work from major blue-chip customers who are "investing billions of pounds in capital, operations and maintenance contracts".
Engineering Tomorrow aims to identify, develop and implement innovative solutions to meet the UK?s major national infrastructure needs, Costain said.
The company has won a number of contracts since the start of 2014, including a place in the GBP2 billion National Electrification programme. In February the company's joint venture ABC Electrification Ltd was appointed as one of four suppliers to the programme, delivering electrification to more than two thousand miles of the UK's rail system.
ABC Electrification Ltd is an equal-share JV comprising France's Alstom SA, Babcock International Group PLC and Costain. The contract is valued at an initial GBP900 million to the joint venture under a seven-year term, extendable for a further three years.
Costain said as a result of new contracts wins and extensions, its forward order book has increased to GBP3.2 billion compared with GBP3.0 billion at the end of December.
In addition, to date over GBP900 million of revenue has been secured for 2014.
Financially, Costain said it completed a GBP70.3 million capital raise in March enabling it to "take greater advantage of the opportunities in its chosen markets and accelerate the group's medium and long term prospects".
Looking ahead, the firm said with increased financial resources, a strong order book and a good pipeline of opportunities, it remains confident of meeting its expectations in 2014.
In early trade Wednesday, Costain shares were up 0.5% at 268.75 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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