Costain Share Discussion Threads

[this_is_me] 05/9/2023 07:47

Yes, having bought late last year I am very happy with the turnaround to a solid company and expect the share price to continue to increase steadily and the dividend to grow steadily over the coming years.

[pinemartin9] 05/9/2023 07:42

Certainly very good news! I've been very impressed with everything coming out of Cost recently. Interim dividend, so more to follow.

[hamhamham1] 05/9/2023 07:10

...and so it begins!

(And with maybe with a 60p open today?)

[hamhamham1] 05/9/2023 07:04

5 September 2023

Resumption of Dividends and Interim Dividend Declared

Further to the announcement of half year results on 23 August 2023, Costain Group PLC ("Costain") announces that it will resume dividend payments and has declared an interim dividend of 0.4p per ordinary share for the six months ended 30 June 2023.

The interim dividend payment will be made on 27 October 2023 to shareholders on the register at the close of business on 22 September 2023.

Payment of the interim dividend will be both as a cash dividend and scrip dividend alternative. Shareholders wishing to join the scrip dividend scheme should return a completed mandate form to the Registrar, Equiniti, by 6 October 2023. The scrip reference price will be announced on 28 September 2023.

For more information regarding the scrip and to download the mandate form, see Costain scrip.

[lateralthinker] 04/9/2023 16:21

Given bond rate rises recently it may well be that the pension fund is looking in much better shape. Does anyone know when the triennial valuation is due as it is an opportunity to renegotiate the 3.3m annual funding and/.or get rid of the link to dividend payments...

[roguemale1] 04/9/2023 13:22

Divi/pensions

I have tabulated the history of this but it wont paste in here properly so will try and phrase my open question instead apologies.

So when they were last paying dividends it was on basis of 2.5 cover. Now stated cover 3 times. Cost of divi used to be roughly av 15m over last 3 divi yrs. So now for 2023 with the numbers heading back to where they were then you could prob expect something like £12m as a cost of divi. But now of course we have the criteria of 3.3m to pension until 2027 and if they want to pay more than that in divis then they have to match it into the pension.

Now the pension contributions were always separate and on top of the divi cost previously but how does that work now?

Is the intent to limit divi to 3.3m?
OR Is the intent to make the total of divi and pension contribution my 12m?
OR Is the intent to make the divi 12m and pay the pension the same should numbers allow? (or somewhere in between)

I assume they may shed some light on this if indeed they do announce the resumption of dividend. Feel free to tell me if I have missed the answer to my musings in reading the report....

[roguemale1] 04/9/2023 08:55

hxxps://www.constructionenquirer.com/2023/09/04/jobs-to-go-as-costain-winds-down-tech-centre/


As per what was trailed in the HY words....

[boonkoh] 01/9/2023 22:59

Wonder if any public sector buildings will need extensive remediation or rebuilding due to RAAC. And maybe Costain will be appointed as umbrella contractor to inspect, design, and manage the construction nationally....?

[casholaa] 01/9/2023 14:24

I agree with that article. But there again, I'm pretty sure that many of us have suspected as much for the last two years or so.

[roguemale1] 01/9/2023 13:16

Couldn't agree more...had a top up yesterday to get up to a nice round number so I don't need a calculator when the divi drops!

[catabrit] 01/9/2023 12:24

Yep. Big technical test at 60p odd and I think we’ll smash straight through it because bar a few ST traders (nothing wrong with that FWIW) who’s selling? Are you? Am I? Are the big funds who have held this through thick and thin? Is The Count selling? Nope. So up the bid must go until we get adequately compensated.

What’s interesting is how the optionality around the net cash is being valued. We can see the impact in real time. In the past it was there for protection and thus ignored as the market worried about future claims against it etc. It was also getting a paltry interest rate. Now, since the market is less concerned about claims against it and the rate of interest is solid, we’re seeing it mentioned / rated / viewed in a more attacking / positive mindset.

[pinemartin9] 01/9/2023 09:59

Yes, more positivity here and value investors coming in. Needs to break and hold 60 to then really start the re-rate. Would be a great time for some juicy contract wins.

Great to see the increase in volume in the last 7 or so trading sessions. Been a long time since we've seen such stead and consistent buying.

[the count] 31/8/2023 14:49

--->ALL

We are picking up a head of steam.

People waking up to the real value in this stock perhaps?

:-)

Regards,

TC!

[catabrit] 31/8/2023 14:39

Bid has woken up.

[someuwin] 31/8/2023 14:36

100p looks easy from here.

[dickbush] 31/8/2023 14:01

Knowing, Many thanks for that link.

[someuwin] 31/8/2023 13:18

Tipped in Shares Mag today.

[dickbush] 31/8/2023 12:35

"We’re trending in the right direction and we should all be delighted. The valuation will take care of itself. I think a lot of investors can forget how long it takes to rebuild reputation."

FWIW, I totally agree.

[casholaa] 31/8/2023 11:57

WB Imatsu. Good to see you're still around. GL to you buddy.

[knowing] 31/8/2023 11:53

Should bring in some more profitable work

[someuwin] 31/8/2023 10:49

Bought in - looks tremendous value here.

[catabrit] 30/8/2023 18:35

I’d say a thumping 38 percent return YTD when the FTSE all share is flat, a number of small caps are down and a load of active U.K. small cap funds have seen significant redemptions, is the market acting quite rationally, actually. We’d all love this to double over night but just like former stock market duds M&S and Rolls Royce (I own neither and just mention them for context) we’re on the path to redemption. I’m extremely happy with the market’s reaction and I think there’s more to come as Costain confirms the dividend, announces more work and produces a second year of clean results with no major contract issues.

I mean you never know but I’d be disappointed if we see sub 50p ever again. And if we do, it will likely be macro driven with the bursting of the US markets spreading to the U.K. and elsewhere and causing all stocks to sell off indiscriminately.

We’re trending in the right direction and we should all be delighted. The valuation will take care of itself. I think a lot of investors can forget how long it takes to rebuild reputation.

[ttny2004] 30/8/2023 17:45

Yes, but although some of us can see a bargain seems like the general market doesn't lol

[the count] 30/8/2023 11:36

--->ALL

I am always staggered at all this talk of low PE ratios to illustrate how cheap the company already is, certainly in comparison to peers, yet nobody takes into consideration the cash in bank (whether it is all company cash or not, certainly much of it is), the year on year cash generation (so that very cash balance will go on growing from here), when valuing the company.

If we are not burning that cash up, then surely to value the company on a profits multiple, as is the case, the cash, or certainly a substantial amount of that cash, has to be deducted from the market cap first of all.

I guess I am talking enterprise value of a company here, yet brokers and many investors, or wannabe ones, don't seem capable of taking that into full consideration.

We seem to always mention the cash as an aside to the PER, when it is surely a very fundamental part of it all.

On that basis, this company needs to go up a few multiples from here, IMHO.

Regards,

TC!