10th May 2007 07:02
Costain Group PLC10 May 2007 Costain Group PLC("Costain" or the "Group") Annual General Meeting At the Company's Annual General Meeting, to be held later today, the Chairman,David Jefferies, will make the following comments: "I am pleased to report that the current year is progressing in line with theBoard's expectations. "Costain continues to secure major contracts. Just this week, we have announcedour first maintenance contract from the Highways Agency for the day-to-daymanagement of motorways and strategic roads in Greater Manchester, Cheshire,Merseyside and parts of Lancashire. That contract is worth £158m to thejoint-venture with Colas and Halcrow over a duration of five years. "We announced last week that we had reached financial close on the £30mLincolnshire Project, the first of three phases of the Three Shires PFI Scheme.The project is for the design, build and operation of a 8,500sqm CommunityHospital and ancillary services. There are two further projects to come as partof this scheme which are due to reach financial close this summer. "Both contracts provide further evidence of the success of our 'Being NumberOne' strategy which focuses on key sectors. In the Highways sector, we have anexcellent relationship with the Highways Agency, we are one of the UK's leadingroad constructors and we have now gained our first significant contract inhighway maintenance operations. Meanwhile, reaching financial close onanother PFI scheme in the health sector is testimony to the strong relationshipswe are developing with key NHS Trusts across the UK. "The Board considers that certain Group assets have a value in excess of theircarrying cost, and is examining ways of recognising that value in order tostrengthen the balance sheet. The Board believes that a stronger balance sheetis needed to take advantage of the greater commercial opportunities available tothe Group. "I look forward to reporting on further progress." 10 May 2007 ENQUIRIES:Costain Group PLC Tel: 01628 842 444Andrew Wyllie, Chief ExecutiveTony Bickerstaff, Finance DirectorGraham Read, Public Relations College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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