Costain Group PLC Trading Update (3788T)

TIDMCOST

RNS Number : 3788T

Costain Group PLC

05 January 2017

Costain Group PLC

('Costain' or 'the Group')

Year End Trading Update

5 January 2017

Costain, the engineering solutions provider, is issuing a trading update ahead of announcing results for the year ended 31 December 2016 on 1 March 2017.

Since the announcement of its interim results on 24 August 2016, the Group has continued to perform well and expects to deliver full-year results in line with the Board's expectations.

The Group's unique and focused 'Engineering Tomorrow' strategy is successfully positioning the business to provide the range of innovative integrated services demanded by its major customers who are spending billions of pounds in the UK upgrading and renewing the country's energy, water and transportation infrastructures.

As a consequence of its strong customer relationships, and its engineering and technology-led solutions, Costain secured a number of significant new orders and contract extensions in 2016. New contract wins during the second half of the year included the High Speed 2 South Enabling Works, the Area 14 Maintenance commission for Highways England and the Peterborough and Huntingdon compressor station upgrade for National Grid.

As a result, the Group's order book at the year-end was maintained at the record level of GBP3.9 billion (31 December 2015: GBP3.9 billion). The Group has increased its revenues secured for 2017 to over GBP1.2 billion (as at 31 December 2015: over GBP1.1 billion secured for 2016). In addition, Costain has a preferred bidder position at over GBP500 million (31 December 2015: GBP500 million).

Reflecting the development and changing nature of the business, the Group has a total headcount at the year-end of over 4,100, which includes over 1,200 now in advisory, technology and design service roles.

Following good cash generation towards the end of the period, the Group finished the year with a strong net cash position of over GBP100 million.

Andrew Wyllie CBE, Chief Executive, said:

"Costain has had another strong year. Our customers are undertaking substantial investment addressing urgent national needs and we are looking forward to the future with confidence."

Enquiries:

 
 Costain                                Tel: [phone] 
 Andrew Wyllie CBE, Chief Executive 
 Tony Bickerstaff, Finance 
  Director 
 Catherine Warbrick, Investor 
  Relations Director 
  Sara Lipscombe, Communications 
  Director 
 
 Instinctif                             Tel: [phone] 
 Mark Garraway 
 Helen Tarbet 
  James Gray 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 05, 2017 02:00 ET (07:00 GMT)