27th Apr 2006 11:00
Costain Group PLC27 April 2006 Costain Group PLC ("Costain" or the "Group") Annual General Meeting At the Company's Annual General Meeting held today, the Chairman, DavidJefferies, made the following comments: Costain is making good progress. As we reported in our preliminary results announcement, we are particularlypleased with the forward order book which not only stands at record levels but,more importantly, includes secure work over a five-year term of which asignificant proportion is repeat business. Since the year end, further contractawards have maintained the forward order book at a level of £1.9 billion. Volume is up in the first quarter driven largely by the increased activity inwater asset management where Costain is the market leader. Andrew Wyllie, our new Chief Executive, has completed a comprehensive businessreview following which Andrew and his executive team are implementing theGroup's new "Being Number One" strategy. There have been other significant recent developments. Following the restructuring last year of the Group's balance sheet, the Boardwill be able to consider, subject to delivering planned business performance andprevailing trading conditions, a resumption of a final dividend payment inrespect of 2006. A resumption of dividend payments must also take into account our obligation toaddress the remaining deficit on the Group's pension scheme and the Board hasagreed with the Scheme Trustee that a resumption of dividend payments will bematched pound for pound by a payment into the scheme. As previously reported, Charles McCole, Finance Director, is stepping down fromthe Board. We wish him well for the future. Charles will shortly be succeededby Anthony Bickerstaff, Finance Director of Taylor Woodrow Construction Limited. In summary, I would repeat my comments accompanying the announcement of theyear-end results. The current year has started well, with continuing high levels of customer spendin our targeted markets. Our 'Being Number One' strategy will see a greateremphasis on establishing market leading positions in selected sectors and this,combined with other actions, will help ensure that Costain meets its newobjective of achieving double-digit growth in turnover and underlyingprofitability over the next three years. 27 April 2006 ENQUIRIES:Costain Group PLC Tel: 01628 842 444Andrew Wyllie, Chief ExecutiveGraham 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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