Costain Share Discussion Threads

[hamhamham1] 16/3/2021 07:18

Ammu. You are funny, cherry picking and applying your usual doom mongering :)
Read the RNS as a whole, it will be received well.
I am confident that by end of year this will be 150p (personal upgrade) and also confident you will still be looking at puddles, claiming the sky is falling in.

What is your personal beef with Costain? I think you have lost a load here and sold, now want to justify your move. Or if you want to buy in at low levels, good luck with that
Enjoy!

[ammu12] 16/3/2021 07:17

Not sure how the market will take this....

[claymagnet] 16/3/2021 07:14

Chance to add, depends on the dip

[ammu12] 16/3/2021 07:08

Before revenue impact of significant contract provision adjustments of GBP92.1m (2019: GBP20.0m) (see financial statements note 3).2. Before net other items of GBP10.3m (2019: GBP21.1m) and significant contract provision adjustments of GBP99.7m (2019: GBP20.0m) (see financial statements note 3).

[skinny] 16/3/2021 07:06

.




Highlights

-- Operating effectively and profitably
- in responding to COVID-19 all contracts continue to operate effectively with clear safety measures and remote working in place

- adjusted operating profit of GBP18.0m (2019: GBP37.9m), despite financial impact of COVID-19, in line with revised expectations

- statutory reported loss before tax of GBP96.1m (2019: GBP6.6m) includes significant charges in relation to the Peterborough & Huntingdon (P&H) and A465 road contracts

-- Significant operational improvements made
- new leadership team
- de-layered organisational structure
- improved contract selection and risk management processes
-- Continued momentum in securing new work in line with strategic focus
- GBP2.3bn of new contract awards and extensions, including GBP1.1bn of new contract awards and extensions and GBP1.2bn of preferred bidder at year end

- GBP4.2bn order book
-- Strong year end cash
- net cash of GBP102.9m (2019: GBP64.9m)
-- Confident outlook for 2021 and beyond
- substantial and growing infrastructure market, positioned on significant long-term underwritten investment programmes

- confident in delivering growth in profits and margins in 2021

Financial Summary 2020 2019
GBPm GBPm
--------------------------------- -------- --------
Group revenue
-adjusted (1) 1,070.5 1,175.6
-statutory reported 978.4 1,155.6
Operating profit/(loss)
-adjusted(2) 18.0 37.9
-statutory reported (92.0) (3.2)
Profit/(loss) before tax
-adjusted(2) 13.9 34.6
-statutory reported (96.1) (6.6)
Net cash balance(3) 102.9 64.9
--------------------------------- -------- --------
Basic earnings/(loss) per share
-adjusted(2) 5.8p 25.1p
-statutory reported (36.7)p (2.3)p
Dividend per share Nil 3.8p
--------------------------------- -------- --------

1. Before revenue impact of significant contract provision adjustments of GBP92.1m (2019: GBP20.0m) (see financial statements note 3).

2. Before net other items of GBP10.3m (2019: GBP21.1m) and significant contract provision adjustments of GBP99.7m (2019: GBP20.0m) (see financial statements note 3).

3. Net cash balance is cash and cash equivalents less interest-bearing loans and borrowings (before arrangement fees of GBP1.2m).

Alex Vaughan, chief executive officer, commented:

"Last year was a challenging year but I am proud of how well everyone at Costain responded and the resilience shown across our business which enabled us to continue to operate effectively with strict COVID-19 safety measures in place.

"We are pleased to report an adjusted operating profit of GBP18.0m, despite the financial impact from COVID-19. The significant charges reported at the half-year relating to two contracts are clearly disappointing, and importantly we have taken robust steps to prevent such issues from reoccurring.

"Last year, we continued to be successful in winning new contracts and preferred bidder positions worth over GBP2.3bn with an increasing proportion of this work incorporating our broader service offering in line with our strategy.

"The UK Government has provided a clear strategic framework for UK infrastructure investment, underpinned by long-term underwritten investment programmes to support the UK Government's drive to level-up economic growth and to meet decarbonisation commitments. I am confident that Costain is in a good position to capitalise on the opportunities in front of us and to grow our profits in 2021."

[hamhamham1] 16/3/2021 06:48

Likely losses made, but if a large proportion are write downs and one offs, then that should be received well, these last few quarters have been an op for many companies to cough up and clear out.
I see a possible drop at 8am and then in the blue by 9am as long term and discount buyers come in.

[dexter1612] 15/3/2021 16:06

I'm long here from 60 odd, half decent results should see a decent bump. Way undervalued not many construction company's of this quality in the UK.

[waldron] 15/3/2021 15:43

Real-time Estimate Cboe Europe - CXE - 03/15 03:26:16 pm
69.7 GBX +2.50%


Next resistence 72p

[imastu pidgitaswell] 15/3/2021 15:37

You really don't do irony, do you?

🙄

[imastu pidgitaswell] 15/3/2021 10:29

Absolutely. I think (today) that I'm happy with that. Tomorrow, post-results, who knows?

:-)

[npp62] 15/3/2021 10:27

125 you said.... no changing now :-) It's not best of 3 mate... I don't remember that being an option :-)

[imastu pidgitaswell] 15/3/2021 10:03

Aargh - good point. Using a calendar that starts the week on a Sunday...

[patience a virtue] 15/3/2021 10:00

Results tomorrow not Wednesday.

[imastu pidgitaswell] 15/3/2021 08:17

Still on for Wednesday then...

Results won't be good, it's all about 2021 and beyond. And the cash...

I sold a few late on Friday, as wanted to repurchase sales on precious metals FRES and POLY. Just a bit of risk management - 100%+ not to be sniffed at. Still got just over 250k though. So happy if it goes up or down after results - will repurchase if down and just hang on if it goes up. Still saying 125 by end of the year.

[hamhamham1] 12/3/2021 17:19

Ahh Ammu ;)

[hamhamham1] 12/3/2021 12:09

Maybe a bit of Kier news at 10.40am today, or upgrade? It just seemed to move up then??

[ammu12] 12/3/2021 10:28

Ask dropping too...Maybe a background seller ? Not shown yet ?

[imastu pidgitaswell] 12/3/2021 10:18

Seen the volumes (or lack of)?

[ammu12] 12/3/2021 10:17

Bid at 65p hmmm

[ammu12] 12/3/2021 09:37

Crazy spread

[imastu pidgitaswell] 12/3/2021 09:28

Lots of little sells - so they open the spread. Still 69.4 to buy, but only 66.9 to sell. So don't sell...

[hamhamham1] 12/3/2021 07:13

UK economy not done as bad as forecast in Jan.
Construction sector was one of the few which grew in that period.
Not bad considering the lockdowns.

"UK GDP for January 2021 - Month on Month -2.9% (EST;-4.9%) - much better than expected - GDP December 2020 was +1.2%"