Maidenhead's Costain provide mid-year trading update
Maidenhead-based construction and engineering company Costain have released a trading update for the first half of 2022.
The group has reported revenue ahead of market expectations, reflecting the inflation recovery mechanisms built into contracts as it passed through increased costs with higher prices, together with increased volumes delivering revenue growth in Transportation and Natural Resources.
Adjusted operating profit for the first half of 2022 is in line with management's expectations, with absolute profitability increasing year-on-year.
Alex Vaughan, Chief Executive Officer, commented: "I am pleased with our performance in the first half of the year as we continue to generate strong free cash flow, deliver against our strategy and meet our customers' needs across our four markets. Our continued progress, supported by a strong order book and pipeline, gives us confidence for the remainder of the year and beyond."
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The group has reported continued growth across its four chosen markets: transportation, water, energy and defence.
In transportation, continued work on HS2, along with other rail and highway activities has equalled a high volume of tender activity. The group has also secured major contracts including the first phase of the Lancaster South scheme and the TfL Piccadilly line design.
The group reports its water performance as ‘stable’. This is built on good visibility in five-year water programmes for Anglian Water, Severn Trent Water, Thames Water and United Utilities.
It also reports good revenue growth in energy, stemming its design and programme management consultancy activities. Recent wins in the energy sector include a net zero contract with BP and the group’s first framework appointment by Shell. Contracts with Cadent, EDF and Sellafield continue to perform strongly.
Defence includes key programme management contracts for its clients such as AWE and Babcock at Devonport, and is delivering increased revenue growth across the group’s current defence portfolio.
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