Probably only works out as an additional 2m per year profit though if they're achieving 3.5 - 4% margin. |
HS2 the gift that keeps on giving |
And more to come :
'minimum of £400m to Costain. This contract, to be signed in due course, starts in Q1 2025 for a seven-year period, with the option for additional contract extensions.' |
 Nice £400m contract
Costain Wins New HS2 Systems Contract
Contract to deliver mechanical & electrical systems
Costain Group PLC ("Costain") today announces that it is to be awarded a new contract by HS2 Ltd. as a sole supplier to deliver tunnel and lineside mechanical and electrical (M&E) systems for HS2, with a total contract value worth a minimum of £400m to Costain. This contract, to be signed in due course, starts in Q1 2025 for a seven-year period, with the option for additional contract extensions.
The contract will see Costain deliver the design, supply, manufacture, installation, testing and commissioning of HS2's Tunnel and Lineside M&E systems during construction.
Alex Vaughan, CEO of Costain, said:
"Costain has a long-standing involvement with the UK's largest strategic infrastructure programme and this new contract is a testament to the strength of our collaborative and successful relationship with HS2. Our teams will draw on their experience and expertise to deliver world-class systems, using the latest technology to drive efficiency." |
Every stock is rising or falling but this doesn't move. Its a complete fiddle. |
They have been doing big reorganization last 3 years mostly booked below line will be interesting to see if it brings the overhead savings and improvements it was looking for. Only other issue is old pension scheme until that is in surplus increases in dividends unlikely and more share buy backs. |
Next level is 90p hope that holds |
Well there's 100p let's see if 95p presents itself |
I keep adding here on weakness.
Re-checking my numbers I noted half year accounts reported £166m net cash and increasing margins. According to Stocko market cap is £272m. This is a company expected to report FY net profits around £30m yet with a current enterprise value of just £106m. That's a crazy multiple and considerably lower than other good companies like Kier and MGNS.
Hopefully we'll get an interim trading update soon (Full year results due March 11th). |
Opportunity coming, maybe 95-100 |
Might as well let it drop a bit before restarting.
Also no point with good trading update if more buybacks. |
Yes. It looks like the £10 mil is spent. Let's hope they announce another tranche very soon. It all helps raise the eps. |
No transaction RNS today.
Does that mean we're done, it was getting close to the £10m.... |
This share needs a trading update just look at Kier after their update don’t have to give any figures just a few lines of text I’m sure the directors have time for that |
Disappointing slow grind up then down |
Possibly test 100p? |
Is this beginning to roll over? |
No breakout yet |
Let's not forget the green underhang. |
TTNY-depends what happens in what 2 weeks when the buy back is done....I am still concerned re overhang |
COST did well to buy the bulk of their buy back at around a quid and below, it'll make a material difference to their earnings metrics, they got good bang for buck for their money. |
Nice to see positivity here. This is a well run business, winning work, a tailwind etc. Long and strong! |
Agree. Think we will see 150p territory in the not do distant future! |
As they're now cash generative and that cash pile is already well over 50% of the market cap, and being as COST have soaked up quite a bit of stock with the buy back at bargain prices, suggest the price is not risky and has plenty of upside still to go. |
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