11th Jan 2006 08:46
Costain Group PLC11 January 2006 Costain Group PLC Trading Update Costain Group PLC ("Costain" or "the Group") will announce preliminary resultsfor the year ended 31st December 2005 on 15 March 2006. Ahead of entering itsclose period, it is issuing a brief trading update. Following his recent appointment as Group Chief Executive, Andrew Wyllieinstigated a thorough business review which has confirmed that the overallresult for the year will be in line with the Board's expectations at the time ofthe interim results announcement in September. The review has confirmed that the overall strategic direction of the Companyremains appropriate. Alongside de-risking the business and developing long-termcustomer relationships, there will be greater emphasis on establishing marketleading positions in selected sectors, which will assist in delivering long-termsustainable profit streams. Resources will principally be deployed in support ofbusiness development activities where strong market positions can be establishedand maintained. These actions will ensure that Costain achieves its new objective for the nextthree years of double-digit growth in both volumes and profitability. The preliminary results announcement will set out the Board's full strategy forgrowth including confirmation of the markets and geographies in which the Groupwill seek to operate. The year has seen significant contract wins especially in water and roads. Inwater, where Costain has a market-leading position, a number of the five yearframework water contracts have the option of being extended by a further fiveyears. As at 31 December 2005, the Group had a record forward order book of£1.9bn. Separately, Charles McCole, Finance Director, has notified the Board that hewishes to pursue new opportunities in the future and does not feel able to givea long term commitment to the Company. He has agreed to remain with the Companyfor a transitional period and so will leave later this year. The Company hasstarted the process to find a suitable replacement. Andrew Wyllie, Group Chief Executive, commented: "My initial review confirms that Costain is a business with a strong brand, ahigh-quality team and a very strong order book. It has an excellent quality andvisibility of earnings going forward which, when coupled with our actions willhelp achieve the new objective of double-digit growth in both volumes andprofitability over the next three years. "Charles McCole has played an important part in the Company's performance overrecent years and we wish him well for the future." 11 January 2006 Enquiries: Costain Group PLC Tel: 01628 842444 Andrew Wyllie, Chief Executive Charles McCole, Finance Director College Hill Tel. 020 7457 2020 Mark Garraway Matthew Gregorowski This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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