Costain Share Discussion Threads

[farrugia] 25/8/2021 07:14

looks decent to me -

Operating profit(2) of GBP11.5m (HY20: GBP5.7m) for the half-year.

Net cash of GBP113.0m, up from GBP102.9m at year end

and their market cap is 174.04M

Looks undervalued?

[skinny] 25/8/2021 07:00

.




RESULTS FOR THE HALF YEARED 30 JUNE 2021

Costain, the smart infrastructure solutions company, announces its results for the half-year ended 30 June 2021.

Highlights

-- Improving profitability. Operating profit(2) of GBP11.5m (HY20: GBP5.7m), in line with the Board's expectations

-- Operating effectively with contracts delivering to plan
-- Continued momentum with GBP334.3m of new work secured and clear bidding discipline and risk management in place

-- High level of tendering activity reflecting the significant market opportunity
-- Positive cash generation and strong cash position. Net cash of GBP113.0m, up from GBP102.9m at year end

-- Broadening our decarbonisation expertise across Transportation, Water and Energy
-- On course to deliver full year results in line with our expectations

Financial Summary HY21 HY20 FY20
GBPm GBPm GBPm
--------------------------------- ------ -------- --------
Group revenue
-adjusted (1) 556.8 547.3 1,070.5
-statutory reported 556.8 459.9 978.4
Operating profit/(loss)
-adjusted(2) 11.5 5.7 18.0
-statutory reported 11.2 (90.4) (92.0)
Profit/(loss) before tax
-adjusted(2) 9.4 3.8 13.9
-statutory reported 9.1 (92.3) (96.1)
Net cash balance(3) 113.0 140.9 102.9
--------------------------------- ------ -------- --------
Basic earnings/(loss) per share
-adjusted(2) 2.8p 2.1p 5.8p
-statutory reported 3.5p (49.9)p (36.7)p


1. HY20 before revenue impact of significant contract provision adjustments of GBP87.4m (FY20: GBP92.1m) (see financial statements note 3).

2. Before net other items of GBP0.3m (HY20: GBP1.4m and significant contract provision adjustments of GBP94.7m, FY20: GBP10.3m and significant contract adjustments of GBP99.7m) (see financial statements note 3).

3. Net cash balance is cash and cash equivalents less interest-bearing loans and borrowings (before arrangement fees of GBP1.0m in HY21).

Alex Vaughan, chief executive officer, commented:

"We are pleased to report an improved level of profitability and a strong cash position, demonstrating the focus on trading performance and cash generation across the business.

"We continue to be successful in winning new contracts, building on last year's strong platform and making the most of the significant market opportunities. Our clients across all our chosen markets are continuing to progress their investment plans and to prioritise investment to meet their needs for decarbonisation, digitisation, levelling up and performance improvement.

"We are busy bidding for new work across all of our markets, combining Costain's core strengths and our broader service offering in line with our strategy. Importantly, we are being selective in our approach to tendering, focussing on bidding discipline and risk management.

"We have good visibility on the completion of contracts for the remainder of this year which gives us confidence in delivering full year results in line with our expectations."

[hamhamham1] 24/8/2021 22:46

No not Eric :)
That would involve seagulls!
Every 5-7 years the stock market presents even the most novice of investors an opportunity to just invest and leave it.
It flatter me the worst of us over the subsequent 3-5 years.
Let's watch and see.

[skinny] 24/8/2021 20:31

hamhamham1 - post 1372 - Eric Cantona? :-)

I assume todays +3.8% with volume is driven by anticipation - trepidation even

[pinemartin9] 24/8/2021 19:28

Totally agree. Patience is the hard thing when ironically doing nothing should be the easy bit. The proactive decision was taken to invest. Now its a question of holding tight and enjoying the ride. Easier said than done but arguably more difficult than the original purchase decision.

[pinemartin9] 24/8/2021 19:26

Leaked results.

[hamhamham1] 24/8/2021 18:58

Worse companies have way more inflated share prices, just a case of sitting on your hands IMO.
Patience is the hard bit, but hey :)

[this_is_me] 24/8/2021 18:16

It is starting to look like insider trading this afternoon or possibly just speculation.

[davwal] 24/8/2021 17:53

In answer to my own question, one difference is the tone and content of the half-year guidance has been a ‘known’ prior to this announcement of annual results..

[hamhamham1] 24/8/2021 17:34

Am happy, but a tad frustrated, as well.
But different plants sprout and shoot up at different times of the season.

[davwal] 24/8/2021 17:26

About six weeks ago the half-year trading update caused the sp, which had undergone a similar minor uplift into the event, to nose dive. The update said results would be in line with management expectations but the market clearly wanted more. What can change in that period to suggest COST will not suffer similarly tomorrow? De ja vu, Rodney de ja vu! That said I will be thrilled to see it crack on from here after being in torpid limbo for so long.

[casholaa] 24/8/2021 16:59

Let's hope so, good luck all for tomorrow and beyond

[imastu pidgitaswell] 24/8/2021 16:55

Nah - I was actually referring to the trades pinging in and pushing the price up, after days/weeks/months of sweet fa, rather than the posts.

All interest, including negative, very welcome.

At least we'll finally have something new to talk about tomorrow - no more bland say-nothing trading and AGM statements...

[casholaa] 24/8/2021 16:46

But he's sort of correct, nobody posts unless there is some thing to be upbeat/downbeat about

[wiganer] 24/8/2021 16:44

I wouldn't comment on that if I were you.

[ashleyjv] 24/8/2021 16:43

imastu pidgitaswell

How often is there something worth commenting on?

[skinny] 24/8/2021 16:37

Yes - uncrossed @63.30p

[hamhamham1] 24/8/2021 16:34

Was that 64.5p at 4.29pm?

[hamhamham1] 24/8/2021 16:30

Updates do have that effect!
Generating posts from interested parties that is, don't get all snobby ;)

[farrugia] 24/8/2021 16:28

this is a project Costain is participating in heavily. I'm really tired of this share - hope tomorrow we have a decent update!

HS2 to support 4,000 more jobs than first forecast

[imastu pidgitaswell] 24/8/2021 16:15

A lot of neauveau arrivistes appearing late on the day before the results...

Nice price action though

[wiganer] 24/8/2021 16:12

Boring would be exciting.

[ashleyjv] 24/8/2021 16:02

My guess for tomorrow will be that us holders will like the results enough to keep holding but the market will be a bit slow on the uptake (Because that seems to be the current trend) 70p seems reasonable.

[hamhamham1] 24/8/2021 15:41

A reasonable update tomorrow and the March daily high close of 69.40p will be taken out in short time.

[pinemartin9] 24/8/2021 15:36

Smash all targets and stratospheric share price increase to 70p plus is my guess.