Costain Share Discussion Threads

[minerve 2] 15/3/2020 16:26

Top 50 construction contractors – wins in February 2020 (Construction News)

Rank 1 Costain 3 wins £304.5m

[escapetohome] 13/3/2020 19:50

Seems you bulls have learnt the very very hard way.

[escapetohome] 13/3/2020 19:49

A leopard never changes its spots.

Same old CON struction industry.

Sir John Egan was wasting his time.

I can tell its just an old school boys club atmosphere that is prevalent.

Nothing new same old culture.

A big club of bully buddies.

Who are the BOD going to let down next?

Anyone who is a fool

Not me.

Ive not a penny in any CON struction company, and never will have.

[npp62] 13/3/2020 18:51

You can't see it recovering? Despite the incompetence please tell us why you consider it that bad..

[bend1pa] 13/3/2020 17:19

Somehow there seem to be a lot of stupid and often corrupt people running British companies these days, who manage to get away with it while the going is good, until a national crisis occurs when they are seriously exposed.

In this case I suspect it's down to incompetence rather than corruption as Costain were already hinting at trouble long before we ever heard about Covid-19. Nevertheless I can't see this recovering. What a hopeless shower we have here!

[chesty1] 13/3/2020 15:31

Might need to change the title on this thread me tinks!

[npp62] 13/3/2020 15:20

To state the obvious, this has been an absolute debacle of late.

[w1ndjammer] 13/3/2020 15:08

Sp usually drops to the placing price anyway, so no rush to buy for me.

the BOD must have been advised by idiots....

WJ.

[rogerrail] 13/3/2020 13:31

Problem here is they have announced a placing without a price being setIMO there is no way they will get a rights issue away in the current climate but they have time to delay. Does anyone know if all shareholders have rights to shares in the placing?

[nelincsmale] 13/3/2020 13:25

Completely agree it seems like a good long term punt. I have done the same. Feel with the government spend on infrastructure coming up and the business moving into consultancy more which should be higher margins and lower risk. The business should move forward very strongly.

Just a matter of how long before market confidence returns.

[wall street trader] 13/3/2020 12:33

I've added some more and am now at my maximum exposure to any share - it's a waiting game now

[minerve 2] 13/3/2020 11:29

Agreed Wall Street Trader.

Still invested here. Investments should be forward looking after all. Wait with anticipated breath what the price will be.

[wall street trader] 13/3/2020 10:56

not exactly flavour of the month at the moment - this will be a long road back to above £1 now - I know Costains very well and they are a company that will benefit from the Governments infrastructure plans but for now there is some short term pains

[minerve 2] 12/3/2020 17:55

"In accordance with the pension regulations, a triennial actuarial review of the Costain defined benefit pension scheme was carried out as at 31 March 2019 and an updated deficit recovery plan has been agreed with the Scheme Trustee. Under the terms of the plan, from 1 April 2020 to 31 January 2029, the Group is required to make: (i) cash contributions of £10.2 million per annum (increasing annually with the Consumer Price Index) (the "Shortfall Correction Contribution"); and (ii) if, in any year, the total dividend amount paid by Costain exceeds the Shortfall Correction Contribution, an additional contribution equal to such excess. Any additional payments in this regard would have the effect of reducing the recovery period in the agreed plan."




Yeah, maybe investors are just being asked to cough up to fund all those rosey coloured defined benefit pensions that the privileged generation expect. All of them should be given an injection of reality and be forced to figure out their retirement using defined contributions in markets such as we have witnessed today. They have had it too good.

Oh look, 10 x £10.2 million per annum = £102 million - what a coincidence!

[minerve 2] 12/3/2020 17:22

Agreed.

At the moment they are effectively asking shareholders to pay the Corona Virus premium which is unacceptable seeing as they have known these changing dynamics in the sector for at least 18 months plus.

[wilksey1] 12/3/2020 11:16

no because it will be a taxable deduction

[ltcm1] 12/3/2020 10:11

Will the red diesel change hit these guys hard??? Muckshifter says ground works use really big amounts of diesel.

[minerve 2] 12/3/2020 09:51

Well, take your time BOD, as the virus and fear spread why not get ahead of the curve and do the raise at 20p!

LOL

Bunch of incompetent idiots.

[escapetohome] 11/3/2020 22:45

This crowd is COSTing shareholders a packet.

Its time to let these gentle folk on huge huge salaries go.

My impression of the CONstruction industry is that the boss folk are not worth the money.

[trcml] 11/3/2020 17:53

Plenty of good businesses do not necessarily make good investments. Imo COST is not a good investment. Generally, the share price only goes up substantially when an analysis or tip sheet plays with the numbers, whereupon pis pile in. I anticipated the divi would be lower (contrary to someone's subsequent comment) so cut entirely is not surprising. To keep up appearances, through thick-and-thin, ups-and-downs, COST needs substantial reserves of capital. The arbitration bothered me: I read the contract is now loss-making. The order book was £4.1BN which assumed £1.1Bn for HS2 before the Government announced the go-ahead which meant that really the book was £3BN. It seems to me that COST needs the capital injection otherwise it is unlikely to impress blue-chip customers into providing more work. Shareholders that stump up or buy in are being rewarded with a nominal interim div later in the year. Life at COST continues as it has done for yonks: to provide jobs for the workforce including directors.

[minerve 2] 11/3/2020 16:13

-- An agreement with the Company's lenders to extend its existing bank facilities from June 2022 to September 2023, conditional on the completion of the Capital Raising;



I don't like the sound of this. It isn't something I would want to put as a large bullet point.


I could have misjudged this one for sure. Sold half my holding for a 20% loss.

[minerve 2] 11/3/2020 16:11

Why haven't the idiots come out with a price?

It is not helping....

Honestly, talk about director incompetence.

I've seen directors lose the jobs for less than this.