17th Dec 2015 08:11
LONDON (Alliance News) - Costain Group PLC Thursday said it has been awarded two key asset support contracts from Highways England to develop and maintain the country's Trunk road network, and been chosen as a preferred bidder for another contract in Sussex.
The two contracts are worth a combined GBP750.0 million over a five year period, with Costain being awarded the contracts through a joint venture that will see the company enjoy about a third of the spoils.
The contracts cover the development and maintenance work on the roads managed by Highways England in "Area 4" comprising Sussex and Kent and "Area 12" covering Yorkshire and Humberside. On top of the initial five year contract, which will begin in June 2016, there is also a three-year extension option.
In addition, Costain has also been chosen as the preferred bidder for a seven-year, GBP300.0 million contract to provide design, maintenance and improvement services covering over 2,000 miles of road. That contract will be dished out by East Sussex County Council and is expected to be formally awarded in January, with work commencing from May.
Costain will be bidding for that contract under a 50:50 joint venture, suggesting it would benefit from around half of the earnings derived from the work if successful.
Costain shares were trading up 1.7% to 383.06 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Costain