Share Name Share Symbol Market Type Share ISIN Share Description
Costain Group Plc LSE:COST London Ordinary Share GB00B64NSP76 ORD 50P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -9.50p -3.09% 298.00p 298.00p 300.00p 310.00p 298.50p 300.00p 66,467 16:35:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 1,463.7 40.2 30.9 9.6 321.56

Costain Share Discussion Threads

Showing 6501 to 6525 of 6650 messages
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I prefer to look at PBT rather than Operating profits. It was £31 m (adjusted) giving eps 44.1p - which after placing is 29.4p - so on a PE of 8.8. Order book strong, good yield around 4%. Previously held and tempted again.
Got it from the annual report paduardo 'profit from operations £35 mill' but there are couple of bits to come off that...such difficult things to follow these annual reports :-/ IMO I do believe that £25/35million is not enough profit on a turnover approaching £1billion... cash flow could become an issue in the future.
Optomistic, broker forecasts I can find have full year profit circa £25m. Where abouts did you source to £35m? Thanks
JCB sees very bouyant market in the UK, bodes well for Costains prospects hTtp://
Turnover almost £1 billion, profit £27 mill (approx figures)not a lot of room for error there! Fingers crossed all goes well for Costain, they have put a lot of effort into achieving their standards in design/construction. edit... Profit to £35million (must have had a half year or earlier year amount in mind)
Same share price as December 2008. Five and half years later and still the same share price ALL IMO. DYOR. QP
Constant positive information but not the markets favourite share
solarno lopez
The latest rise on the chart from 250 looks fantastic but the big worry is where the next low is going to hit. Is it going to be a small dip or a big drop from here.
Bought COST at 270p on the 25 th March , looks great value .
I am surprised the company is not now in play as a takeover candidate itself - probably it should be! A problem with the shares being narrowly held.
Got the corporate action on TD Direct today, subscribed for my shares @ 225p per share.
Very tempted to buy again. Sector and timing good, but I just am not convinced by the current management lineup. Too many mistakes in the last 5 years not to have managed a business and read the sector. Mind risk a unit or a unit and a half if feeling flush
erogenous jones
yes , UEM/Al-Karafi are voting for the placing but not taking any shares.
I have copied this from the prospectus: "Costain has received irrevocable undertakings from Costain Shareholders and certain CostainDirectors who are also Costain Shareholders in respect of approximately 42% of Costain's existing issued share capital to vote in favour of the Capital Raising." Could the 41% you mention be 'UEM Builders and Mohammed Al-Kharafi' holdings?
I had a skim through the prospectus and it seems that the major shareholders UEM Builders and Mohammed Al-Kharafi >41% between them are not going to be buying any of the shares on offer. Anyone else get that impression? If so then this looks more like a clumsy way for them to reduce their effective holding than anything else. The counter argument troyT is that one of the reasons given for needing more cash is so that they can bid for even bigger and longer contracts. That sounds more rather than less risky to me.
I think that the negative sentiments here are possibly misplaced. Yes the fundraising was large and dillutive. However,group has moved to lower risk contracting model and is increasing support services as a % of total revenue. Thus there is an interesting internal story that should make profits warnings and capital calls of the past less likely. The shares have around a 4% yield (4.5% this year increasing to 4.7% next year if forecasts are to be believed). The cash call is to fund growth and the sector is in a strong area with UK construction turning around. Thus despite a negative fundraising update I think the stock has a good chance of moving higher from here. We shall see.
I held COST shares for about 15 years and went through all sorts of setbacks and disasters including rights, share consolidation, endless profit warnings. Bad news? You name it and COST will provide it. I sold out a few years ago lucky to be on b/e. And the share price is even lower now than then. One needs only to read back through all the old threads here to find that nothing has improved over about 20 years. Apart from not having the confidence of the city, they always manage to find duff CEO and FDs. Motley Fool today - All of which will leave investors asking questions - do the strong results combined with the decline in share price mean that Costain is a falling knife waiting to be caught? Or does the performance of its shares over the last 12 months put you off? Well, it's up to you whether today's news combined is enough to make the company a buy.
Dreadful share issue. By my calculation when the price was 267p this afternoon the fund raising of £75m had already destroyed £35m in the combined Mcap. Presumably the shareholders who have already been lined up to support the proposal will be the same ones who got their snouts in the trough early and stand to make money in the way described above. PIs left out in the cold in the most synical way possible. Time to organise a coach party to the General Meeting and ask some pretty searching questions on the motivation and methodology being adopted.
I can't fault Pauls Scotts analysis of the balance sheet, but the essential thing he is missing is that with a high turnover there is always an opportunity through a refocus and good management of contracts to increase margins. Costain's stated aim is to move to higher margin work and although it has not come through significantly on these results (gross margin increased from a mere 5.7% to 6%) it's not a strategy that can be implemented quickly as they need to recruit expertise and identify , tender, win, plan and then schedule the contracts which takes time. I believe the energy sector in particular can provide margins at least double the current level. I also think his fears of the risk of these contracts going wrong being ruinous are overdone, the fact that companies like COST can be profitable from such tight margin work indicates the expertise they have developed in managing contracts and passing unforeseen variances back to the customers and suppliers when they occur.
I thought this may be of interest, courtesey of part of his report from Paul Scott at Stockpedia, whom I rate very highly. Therefore the current share price of 265p is really a blend of last night's 3 shares held at 319p, less 1 new share at 225p. Averaging that out comes to a price of 295p, so the market pricing it at 264p shows that it's fairly unimpressed with this deal, I would suggest. It could well also be people in the Firm Placing flipping their cheap 225p stock for an instant profit (which can be done by opening up a short CFD today, and then settling it with the new 225p shares when issued). So really the Firm Placing part of this deal is disadvantageous to existing holders, since it's handing free money on a plate to people who took part in the Firm Placing. I wouldn't be very happy about that if I were an existing holder of the stock. Still, once the dust has settled, at least this will fix their Balance Sheet, and is a good example of why personally I always look for Balance Sheet strength - because it avoids this kind of dilutive fundraising. In this case there is at least an Open Offer for existing holders, but what if it had just been a Placing, as is often the case in smaller companies? It would have been a nasty loss for existing holders. The total number of shares will go up from 66.8m to 100.2m after this fundraising. This means that the 44.1p adjusted EPS just reported for 2013 would drop to 29.4p if I've done the maths correctly. Given that the Balance Sheet would now be a lot better post fundraising (although still not amazingly strong by any means), then I think you could value that on a PER of 10 perhaps? So a sensible valuation might be just under 300p going forwards. I can't see any reason to rush into buying the shares, although paradoxically if they weaken further from here, and start to get near the 225p fundraising level, then the risk of the Open Offer failing and the underwriters being forced to take £50m of stock rises. So it's a tricky one. Personally I don't like this sector generally - a lot of companies in this space have gone bust in the past, and generally companies with very large turnover, and thin margins, working on complicated major projects, are high risk investments. If something goes badly wrong with a big contract, the cost over-runs can be ruinous, so I'll probably avoid this sector altogether from now on. - See more at:
I don't mind the rights issue at such a discount but it's definitely a disappointment that they feel they have to place at such a discount - a lot of companies in the current market are placing at zero discount and then the share price is going up in reaction. Why not just do a rights issue for the whole lot at that price?
I also closed my position ASAP this morning. If the board were really interested in maximising shareholder value they would have put the company up for sale v this excessive cash raise.
I'm not surprised they need to raise cash. They have a net cash outflow, even considering they sold shares of a joint venture to Severn Trent for £12M. I know they bought EPC and have also said they bought their share of a Serco JV for £2.4M, but these should roughly balance each other out. The fact that there is such a huge discount to the existing share price is also concerning, as is the sum they want to raise. I don't hold but have followed Costain as I'm invested in the sector through Carillion. Not planning on buying just yet! Cheers, Steve.
Many thanks guys. Much easier to look at this from outside, fortunately not being a shareholder yet, but I would have thought this could but this company on a much firmer footing for the future.
Yes, according to the rns shares are already ex-entitlements: Ex-Entitlements Date for the Open Offer: 27 February So the price today reflects this.
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