Costain Share Discussion Threads

[pinemartin9] 15/7/2021 07:53

It's positive!! Look at the numbers. Reaffirming in line with guidance. Should garner further interest and see this firmly over 60p at last!! Bulging order book, strong cash position. What's not to like in these covid times.

[ammu12] 15/7/2021 07:51

Tbh gfrd did gave indication on profit margin towards upper target level which costain didn't....

[ttny2004] 15/7/2021 07:48

Agree with Imastu. There last trading updates have never been detailed either so cant read in anything in that regard due to being brief

[imastu pidgitaswell] 15/7/2021 07:45

I honestly don't see it as a negative - not with that level of net cash.

And I did like the wording "We have continued to secure new contracts in line with our strategic ambitions" - don't forget those strategic ambitions include 7% margins in due course.

But who knows?

GFRD also have a TS out today - quite a lot more words, but not actually much in the way of specifics. Maybe we're being a bit harsh on COST:




Anyway, my evil plan to take over the world by buying precious metal mining stocks will be getting my attention today, as inflationary pressures result in the price of gold and silver heading higher...

[theoldcodger] 15/7/2021 07:41

My overall impression is that their results won't be particularly wonderful, had their numbers been brilliant, then I'm sure they would have trumpeted those and provided more figures. Thus, I take this as a negative statement, promising jam tomorrow, my only solace is that it's not an outright profit warning.

I hope I'm wrong, but I expect the share price to remain weak and for it to trend lower at least short term.

As you say I.P., we'll just have to wait for the results to find out.

I hold,
TOC

[ttny2004] 15/7/2021 07:35

Guess we will have to wait until 25 Aug for the details. However, like the ahead of expectations. Profitable, good cash generation and confidence in ability to deliver further profits this year in line with the Board's expectations. Strong order book.Costain, the smart infrastructure solutions company, today issues a trading update ahead of the publication of its half year results for the period ended 30 June 2021, on 25 August 21.We have continued to operate productively with effective safety measures in place across all contracts. Underlying trading has remained profitable with good cash generation resulting in a strong net cash position of GBP113.0 million as at 30 June 2021 (30 June 2020: GBP140.9 million), ahead of our expectations. We have continued to secure new contracts in line with our strategic ambitions. This continued progress underpins our confidence in delivering further growth in profits this year, in line with the Board's expectations.The order book at 30 June 2021 stands at GBP4.0 billion (30 June 2020: GBP4.2 billion), with c GBP1.2 billion secured for 2021. The Group's net cash position of GBP113.0 million comprised GBP100.0 million of cash, GBP57.0 million share of cash in joint operations and GBP44.0 million of drawn debt. The average month-end net cash balance for the period was GBP102.9 million (2020 half year: GBP56.3million).

[farrugia] 15/7/2021 07:19

hmm its quite short on detail but this is comforting at least

'Underlying trading has remained profitable with good cash generation resulting in a strong net cash position of £113.0 million as at 30 June 2021 (30 June 2020: 140.9 million), ahead of our expectations. We have continued to secure new contracts in line with our strategic ambitions. This continued progress underpins our confidence in delivering further growth in profits this year, in line with the Board's expectations.'

[imastu pidgitaswell] 15/7/2021 07:08

There’s nothing wrong with that trading statement per se, but there’s just no information to speak of other than cash - being ahead of expectations. Quite a lot higher at £113 million because this time last year they were forecasting around £80 million - but it could just be a timing thing.

We are told they have traded profitably - by what? £1 million, £10 million, £100 million? Margins?

Will have to just wait for the results.

[wiganer] 14/7/2021 14:25

Price chart is sideways, so not sure you can read much into it about the update either way

[ttny2004] 12/7/2021 09:43

Graham. Can I suggest to google Costain results. On their website you can listen to presentation to investors/ analysts. You will need to register but well worth it if you have not done do already. Lots of good info and Q&A by analysts always interesting.

[grahamburn] 11/7/2021 19:41

That's only three key short term milestones.

Cany yiou remind us of the other two, please?

[ttny2004] 11/7/2021 09:49

This is what the CEO stated in December his 5 key short term milestones for this year to reach ultimate objectives:1) being cash generative with positive net cash generation2) increasing margins in both divisions to 3 to 4%. Complex projects commenced from Q3 2019 delivering 3 to 5% margin. Growth of higher margin sevices to 40% of profits, moving to target of 55%3) Improved efficiency gains to allow to invest accross the business. £12m this year and £20m by 2024.Let's see how they have got off to the year to achieve this and the tone of the forward looking statement.

[dexter1612] 11/7/2021 08:07

We have a pulse and signs of life...

[ttny2004] 10/7/2021 18:47

We will see. I guess the results will speak for themselves.

[ammu12] 09/7/2021 15:58

The problem seems to be they aren't winning that many contracts as before due to the change in strategy to more of a consulting business.

[ttny2004] 09/7/2021 15:52

Lets see what next week half year results and forward looking statement. If management deliver what they stated 6 months ago think we will see a strong rise as undervalued in my opinion

[davwal] 09/7/2021 10:15

Construction industry output retraced 0.8% in the latest official figures, while still being marginally above pre pandemic levels. Nothing there to suggest construction is the place to be just yet…

[davwal] 08/7/2021 18:35

And then you notice Kier’s performance today..!

[peteret] 08/7/2021 16:04

This is holding up remarkably well as compared nearly every other stocks I hold.tw.shi.card.cen.cine.ted.

[davwal] 07/7/2021 09:15

The recently completed big A14 project, which was also delivered early and under budget in partnership with Skanska was another great success. The national road network stil needs plenty of improvement so fair play to Costain, because they are ‘building back better’ - reputation that is!

[zicopele] 07/7/2021 09:11

Good job and on time. Nothing bog standard about any road job.

They can get very tricky indeed.