5th Nov 2014 09:18
LONDON (Alliance News) - Costain Group PLC Wednesday said it is continuing to perform well and in line with its own expectations, as it was also appointed as a contractor on the redevelopment of the BAE Systems PLC submarine site in Barrow-in-Furness, Cumbria.
The engineer said its order book stands at a new record level of GBP3.3 billion after rising further since the half year. The book includes over GBP900 million of revenue secured for 2015 and over GBP2.2 billion of revenue for 2016 and beyond. At this stage last year, it had over GBP700 million of revenue secured for the current year.
It added that it is also has a strong preferred bidder position on over GBP400 million worth of contracts, and the level of tendering activity across all its target markets remains high.
"The increasingly strategic nature of our long-term customer relationships has ensured that over 90% of the order book comprises repeat business and is in target cost, cost reimbursable, collaborative forms of contract providing increased visibility over long-term margins at lower risk," it said.
"The group is on track to deliver a result for the current year in line with the Board's expectations and, with a record order book, strong cash position and high level of tendering activity, is well positioned to deliver growth over the medium term," it added.
The engineer didn't say how much the BAE Systems deal was worth to it, but the redevelopment of the submarine site is a GBP300 million or more project in total.
The programme involves the redevelopment of the Barrow site in preparation for the building of a replacement for the Vanguard class submarines, as part of the renewal of the UK's nuclear deterrent.
Costain said it will provide nuclear project delivery on operational sites and will deliver the integration of works into existing submarine build programmes. It said work will start in early 2015.
"We are looking forward to a long term and successful relationship with BAE Systems, a major new customer for us," Costain Chief Executive Andrew Wyllie said in a statement.
Costain shares were up 1.2% at 290.60 pence Wednesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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