25th Aug 2021 10:25
(Alliance News) - Costain Group PLC on Wednesday reported a return to profit as it continues to recover from a miserable year of trading in 2020.
The smart infrastructure solutions company posted a pretax profit of GBP9.1 million for the six months to June 30, swinging from a GBP92.3 million loss a year before. Adjusted pretax profit was GBP9.4 million, up from GBP3.8 million a year prior.
Revenue grew 21% year-on-year to GBP556.8 million, up from GBP459.9 million. New contracts worth GBP334.3 million in total were picked up in the period, principally from long-term framework agreements.
The Maidenhead, Berkshire-based group said it was on course to deliver full-year results in line with its expectations.
Costain did not declare an interim dividend but said it will continue to review the timing of the reinstatement of future dividends in light of the company's performance and cash flow requirements.
Shares were down 1.1% at 62.64 pence each in London on Wednesday.
"We continue to be successful in winning new contracts, building on last year's strong platform and making the most of the significant market opportunities. Our clients across all our chosen markets are continuing to progress their investment plans and to prioritise investment to meet their needs for decarbonisation, digitisation, levelling up and performance improvement," said Chief Executive Officer Alex Vaughan.
New work of GBP334.3 million had been secured, Costain noted, with a "high level of tendering activity" reflecting market opportunities.
"We have good visibility on the completion of contracts for the remainder of this year which gives us confidence in delivering full year results in line with our expectations," Vaughan added.
By Will Paige; [email protected]
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