Costain Share Discussion Threads

[catabrit] 08/6/2023 12:16

It’s fair that the share price is down today. They have a lumpy order book and this was a big contract. I’m seeking more details.

The balance between minimising risk (a good thing) and reducing revenue (a bad thing) is a tough one. We should celebrate the pivot towards consultancy and the willingness to drop schemes that are too risky. But we need to keep an eye on revenues, too. Complex delivery is still a sizeable part of the business.

As you all know, I’m one of the biggest Costain bulls out there but I’m no kamikaze pilot. We’ve had a raft of gloomy news from HS2 to Smart Motorways and now this.

It’s something we need to keep an eye on and the correction today is warranted.

I’ll revert when I know more. Currently cycling around Scotland!

[disc0dave45] 08/6/2023 12:14

Sorry, just noticed you beat me to it :)

[disc0dave45] 08/6/2023 12:13

Https://www.constructionenquirer.com/2023/06/08/costain-taken-off-1-3bn-a66-road-delivery-team/

[a day in the life] 08/6/2023 12:11

constructionenquirer.com/2023/06/08/costain-taken-off-1-3bn-a66-road-delivery-team/

"National Highways has pulled Costain from the quartet of contractors mobilising to deliver the £1.3bn A66 Northern Trans-Pennine upgrade project."

[hamhamham1] 08/6/2023 12:00

Sp down over contract losses.
But small upside, for me, sharing with Kier, who I also own.
Anyway. Back to under my rock.

[hamhamham1] 07/6/2023 17:18

For a 2p divi that would be £16-17m profits.

[roguemale1] 05/6/2023 13:13

Yep.
He has said 3x cover mind. On some metrics they should have already been one announced, but as per my AGM question we shall see what happens when they conclude the pension debate and renewal of facilities...
Cynically, my guess is that process wont be that quick and it'll slip to next year and though its now feeding into total shareholder reward calc for their boneo, its still a low %age.... .

[hamhamham1] 04/6/2023 14:59

And to finance a 5p dividend. That would cost nearly £14m of profits.
So on a comfortable say 2-3x divi cover, that would need approx £28-42m profits.
That's all very doable :)

[hamhamham1] 04/6/2023 14:36

There are about 2.5x shares available now than before the raise a couple of years ago.
Gone from roughly 110m to 276m ish.
So if annual dividends were say approx 12.5p av before 2020.
Then if we get back to those levels, look at getting approx 5p divi equivalent now.
That's near 10% on current share price
Just saying ;)

[roguemale1] 25/5/2023 13:29

No great drama, bit of turbulence in Infrastructure as we know, good things in defence.Nett zero.

[catabrit] 25/5/2023 11:44

Thanks Rogue. Please share minuses.

[roguemale1] 25/5/2023 10:57

Catabrit.
Similar overall scuttlebutt. Pluses and minuses but overall fine.

[mayers] 24/5/2023 21:05

Interesting that after the fall in the past week which I take to be some correction the SR price has stood up well in the otherwise general misery. I always think this is a good sign.
The US does seem to tie itself into knots and in recent months it has seemed that there have been several instances of overreaction. If you lack a balanced history you have constantly to create dramas. They will learn in time but it doesn't help to be the lead economy.

[catabrit] 24/5/2023 18:46

Scuttlebutt informs me that Costain are very busy on the water side with volumes ramping up this year and a significant amount of tendering over the medium-term (18-24 months).

[catabrit] 22/5/2023 15:29

Topped up at 50p.

[roguemale1] 22/5/2023 15:23

They're saving it up to pay my dividend....
No, normal for construction. The pendulum can swing very quickly.

[gotabsirius] 22/5/2023 14:44

Why is net cash so high?

It's almost equivalent to the market valuation? Do they have some major liabilities?

[catabrit] 22/5/2023 13:46

Not surprised to see this test 50p again. There’s such deep scepticism that even a ‘trading in line with expectations’ is deemed as a profit warning and a bit of mean reversion in the share price is deemed as something more sinister despite the lack of fixed price contracts on the books! So it goes. Think I’ll be finding things to sell if this continues to languish.

[hopeful holder] 22/5/2023 12:30

Possibly Pine Martin but I'd soon bomb out now and wait to see which way it goes before reinvesting, so I sold for a small loss today.

[pinemartin9] 22/5/2023 12:12

Looks a good point for a top up.

[casholaa] 18/5/2023 23:30

Yeah. As soon as they raise the cost of my metered water, I'll be peeing in a bucket to save that flush and feed the compost heap.