8th May 2008 07:01
Costain Group PLC08 May 2008 Costain Group PLC("Costain" or the "Group") AGM and Interim Management Statement The Costain Group is issuing, ahead of its AGM to be held later today, its firstInterim Management Statement covering the period from 1 January 2008 to thecurrent date. Overview Following a strong result in 2007, the Group has continued in the first quarterto perform in-line with its expectations. During the period, Costain hassecured new orders and preferred bidder positions following a number of highquality awards. The Group's 'Being Number One' strategy continues to providestability and focus in its key targeted sectors. Order Book The Group's high quality forward order book has increased by 19% to £1.9 billionand the Group's preferred bidder position has grown significantly to in excessof £1 billion. Operations Civil Engineering, which incorporates the Group's infrastructure andenvironment-related activities, has made an encouraging start to the year. In Infrastructure, the division secured in joint venture a major contract on theA14 in Cambridgeshire; an advance works contract at Farringdon Station as partof the Thameslink Capacity Enhancement Project in north London; and is preferredbidder on the Bell Common tunnel project on the M25. In Environment, Costain, as a 40% member of the 4D consortium, was delightedearlier this week to win a five-year extension to its AMP4 contract for SouthernWater. The extended contract gives the Group early visibility of a majorearnings stream from 2010 through to 2015. In addition, the Group is thepreferred contractor for the Award for an enlarged Container Terminal from Portof Felixstowe, part of the Hutchison Whampoa Group. In the Building division, work continues on improving margin performancefollowing the remedial actions put in place during 2007, including are-alignment into key sectors. The Group has been awarded preferred status onthe Newbury Parkway development for Shearer and Standard Life. The Group's Oil, Gas and Process division is continuing to perform well in verygood market conditions and was recently awarded a contract for E.ON's HolfordUnderground Gas Storage project. Whilst conditions in Spain remain challenging, the Group's land developmentdivision continues to progress the sale of land, further planning approvals andthe development of the marina concession project announced last year. Board On 1 January, David Allvey became Chairman following David Jefferies'retirement. Also in January, James Morley joined the Board as a non executivedirector. Bill Ballard retired from the Board on 7 May and Azman Sulaiman alsostepped down as a non executive director on the same day. Outlook The Board expects further progress during the current year in line with itsexpectations. The Group's strategic focus is on blue chip customers who are expected tocontinue implementing their long-term investment programmes even in a period ofheightened market uncertainty. The Group's order book is in good shape and withrobust finances, a strong cash position and rigorous cost management, Costain isin a strong position to capitalise on the many available opportunities. 8 May 2008 ENQUIRIES: Costain Group PLC Tel: 01628 842 444Andrew Wyllie, Chief ExecutiveTony Bickerstaff, Finance DirectorGraham Read, Public Relations College Hill Tel: 020 7457 2020Mark Garraway Adam Aljewicz This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Costain