Costain Share Discussion Threads

[rimau1] 25/5/2024 14:57

The IC do not strip out net cash for valuation which makes no sense or is lazy

[cestnous] 25/5/2024 11:37

Shares mag says sell.They were Glad they tipped it but cannot stay convinced because of low margins. Probably caused th drop Thurs/Fri. Bad advice imo which will mean an embarrassing apology sometime in the future. I’m holding on for now.

[xamf] 25/5/2024 07:15

Greg - That's my take on a (probable) Labour victory too. Have built a higher proportion of stocks within the construction/materials sector.

[greg the grinch] 24/5/2024 12:10

Labour only have one strategy.... create jobs building infrastructure.

[mayers] 22/5/2024 19:52

MGNS in contrast went North.

[fft] 22/5/2024 16:21

Election 4th July. Just announced

[jackdaw4243] 22/5/2024 16:03

Will Keir Starmer and Co be good for construction ? I have had a good run should I bank ??

[hamhamham1] 22/5/2024 06:56

180p, £500m market cap is a good starting point for correct valuing here IMO.

[someuwin] 21/5/2024 19:36

Water companies in England and Wales want bills to increase by between 24% and 91% over the next five years to fund £100bn of spending on water infrastructure improvements.

Hopefully COST will be a big beneficiary of that spending.

[dickiebird2] 21/5/2024 16:24

Looked on the weekly chart could go to the pound mark !!

[owenski] 21/5/2024 16:15

Well above average volume too, bodes well.

[dickiebird2] 21/5/2024 16:07

Strong finish looks good for tomorrow!!

[catabrit] 21/5/2024 10:29

Still my biggest position.

[dickiebird2] 21/5/2024 10:06

Be nice to break through the 85p level !!

[fft] 20/5/2024 13:13

No one is producing a source for the actuarial valuation . In a June 2023 RNS, the following statement was made "The Scheme funding position on a Technical Provisions basis as at 31 March 2022 was a deficit of GBP25.1m (a funding level of around 97%)."We are now 2 years later and I haven't seen a funding position statement for march 2023 or march 2024. Can anyone produce one because once the funding position is greater than 101% the company is not restrained by the dividend parity agreement. Page 42 of the AR last week.High interest rates have benefited many pension schemes and I see no reason why the costain pension scheme won't be similar.I could easily be missing something here, but if the dividend agreement isn't in play, the dividend can be 1/3 of the adjusted operating profit of 40m which would work out at 4.5p a share compared to 1.2p announced for 2023.

[chris magpie] 20/5/2024 10:31

Actuarial Valuation in March 2025 is where they are probably hoping to get to a surplus position. Then hopefully assuming profits for 2025 on target they can start to look at increasing dividends paid in 2026. As with all these big Sector companies one or two bad jobs can mess everything up but hopefully those bad old days are behind Costain now.

[dickbush] 20/5/2024 08:23

I have asked about buying back shares. It is included with dividends in equalling the payment to PF.

As I don't see an actuarial surplus any time soon, company's dividend restricted to one sixth of eps. IMO a negative for institutions. On the other hand, it must be an increasingly attractive acquisition.

[pinemartin9] 18/5/2024 07:25

With all this cash, and decent interest rates, presumably Costain is making some nice interest?Another thought, if the dividend is capped to match the pension payment, then if they bought shares back and cancelled them would that then also mean they could increase the dividend. This would have a double wammy impact of increasing the EPS and boosting the dividend payment.

[pinemartin9] 17/5/2024 20:01

This is being punished for the failings of the past. I believe its a different beast now, the market remains sceptical. Therein lies the risk and opportunity. Margins, pension, bad contracts have all pulled this down. The turnaround is underway but not yet believed by the market. There will come a time when Mr Market cottons on, at that point the share price will jump. If I was Kier, Balfour etc I'd be looking to buy Costain. The order book is wondrous.

[chris magpie] 17/5/2024 19:18

There doesn't seem to be an up to date one published. Last official was in March 2019 and Deficit was massive nearly £100m. The next official one should be March 2022 which is not published yet but was apparently less than £50m deficit. Should have better idea once they issue March 2022 Report..

[rimau1] 17/5/2024 18:50

Remember we have risen from the 50's not so long ago so its just consolidating here IMO. My only concern (and on

[pinemartin9] 17/5/2024 17:55

Good point. Surely this is tightly held? Has anyone sold any recently? We must start to believe our own hype, but the share price seems very comfortable with an 8 infront of it. We just need something to happen to pull in some new buyers and we should be off to the races.

[cerrito] 17/5/2024 17:21

Something that is interesting to me if no-one else is the stability of the shareholder register. Only 2 TR1-1's in the last 2 years.

[fft] 17/5/2024 01:49

Chris,Also on page 42 it says "In addition, if the funding level is above 101% as at 31 Marcheach year, then no Scheme contributions will be payable inrespect of dividend parity for the following year."Which appears to mean that next year they won't even have to pay the 3.3m and dividends won't be restricted as they are now past the 101% figure.Re. Your comment that the actuarial surplus isn't the same as the financial surplus mentioned in the AR (page 42 again). Have you any link or figures about the actuarial numbers ? There isnt any mention that I can see in AR about that.