Costain Group PLC United Utilities framework contract (2481D)

TIDMCOST

RNS Number : 2481D

Costain Group PLC

25 June 2019

Costain Group PLC

("Costain" or "the Group" or "the Company")

COSTAIN APPOINTED AS SOLE MAINTENANCE SERVICE PROVIDER

BY UNITED UTILITIES

25 June 2019

Costain, the smart infrastructure solutions company, has been appointed as sole Maintenance Service Provider by United Utilities across its operations under a framework contract for an initial period of five years with an option to extend to ten years.

Under the contract Costain will provide overall management and delivery of United Utilities' larger-scale water and waste water asset maintenance activities across the entirety of its network, including 96 water treatment and 575 waste water treatment sites, which serves over six million people in the North West of England.

This contract marks the first time United Utilities has outsourced its maintenance activity as it seeks to drive material efficiency and operational improvements in line with customer expectations and regulatory requirements.

Costain's integrated technology and consulting solutions will help United Utilities move from a reactive 'fix-on-fail' approach to a proactive maintenance programme thereby improving the resilience of its assets and environmental outcomes whilst ensuring continuity of supply and consequently lowering costs for its customers.

Contract mobilisation will begin immediately in preparation for the official start in June 2019. The framework is expected to be worth c GBP35 million per annum throughout the duration of the contract.

The Group continues to be involved in a wide range of tendering activity across the UK water sector in anticipation of AMP7 (2020-2025) for which companies have pledged to spend more than GBP50 billion on improving services, a double-digit increase on the previous period.

Alex Vaughan, CEO of Costain, commented:

"By integrating our programme management, asset optimisation and technology capabilities, Costain will help United Utilities to support its business transformation. Our integrated services and use of digital technology will help to deliver a step change in business performance and operational efficiencies for United Utilities in support of their strategy and in line with customer expectations and regulatory requirements."

ENDS

Notes to Editor

Costain helps to improve people's lives by deploying technology-based engineering solutions to meet urgent national needs across the UK's energy, water and transportation infrastructures. We have been shaping the world in which we live for the past 150 years.

The Group's 'Engineering Tomorrow' strategy involves focusing on blue chip clients in chosen sectors whose major spending plans are underpinned by strategic national needs, regulatory commitments or essential maintenance requirements.

Costain's 4,000 people, who are committed to high performance and safe delivery, are working on a number of high profile contracts in the UK incorporating a broad range of innovative services across the whole life-cycle of our clients' assets and does so through the delivery of consultancy, technology, asset optimisation and complex delivery services.

For more information visit www.costain.com

Enquiries:

 
 Costain                                       Tel: [phone] 
                                                          444 
 Alex Vaughan, Chief Executive Officer 
 Tony Bickerstaff, Chief Financial Officer 
 Carolyn Rich, Investor Relations Director 
 Sara Lipscombe, Group Communications 
  Director 
 Instinctif Partners                            Tel: [phone] 
                                                         2020 
 Mark Garraway 
 James Gray 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

CNTCKQDQPBKDDAB

(END) Dow Jones Newswires

June 25, 2019 02:00 ET (06:00 GMT)