Share Name Share Symbol Market Type Share ISIN Share Description
Costain Group Plc LSE:COST London Ordinary Share GB00B64NSP76 ORD 50P
  Price Change % Change Share Price Shares Traded Last Trade
  0.10 0.15% 66.10 1,305,586 16:35:27
Bid Price Offer Price High Price Low Price Open Price
65.80 66.50 66.50 63.70 65.10
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 1,155.60 -6.60 -2.70 182
Last Trade Time Trade Type Trade Size Trade Price Currency
16:35:27 UT 198,942 66.10 GBX

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Date Time Title Posts
25/11/202019:33Rishi Sunak's National Infrastructure Strategy for Ј100 billion of long-term inv6
03/9/202007:33UNDERVALUED GOOD recovery play.. COSTAIN6,508
17/4/202013:35COSTAIN - PE of 28
24/4/201307:47*** Costain ***13

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Costain Daily Update: Costain Group Plc is listed in the Construction & Materials sector of the London Stock Exchange with ticker COST. The last closing price for Costain was 66p.
Costain Group Plc has a 4 week average price of 56.10p and a 12 week average price of 49.60p.
The 1 year high share price is 179.80p while the 1 year low share price is currently 30.35p.
There are currently 274,949,741 shares in issue and the average daily traded volume is 1,313,675 shares. The market capitalisation of Costain Group Plc is £181,741,778.80.
cleverinvester: Up till 2018 they provided a dividend of 3-5 percent per year based on a share price of 4-5 pounds. So today's price is a bargain. share price will multiple by 5
imastu pidgitaswell: F - one of the relevant factors, without boring everyone to tears (!), is enterprise value. The real value of a business (e.g. to an acquirer) is the market cap plus the debt they would take on (or minus the net cash they would be buying). COST's enterprise value (EV) is market cap minus net cash - so around £100m using 66p (275m shares) and £80m for the net cash (which is what they have said it will probably be at the year end - the current cash levels are a lot higher and were £140m at 30.06.21) KIE's EV is their market cap (£152m) plus their net debt (c£436m average net debt per the last set of numbers, so c£590m. Assuming their own data is correct... hTTps:// The key issue is the proportion of the equity to the enterprise value, i.e. how much does a movement in the share price (market cap) impact the enterprise value. In the case of COST, it's a low gearing, i.e. a 10% move in the share price changes the enterprise value a lot more in percentage terms than a 10% movement in KIE's share price does. So in a sector moving upwards, the KIE price has to move a lot more to deliver the same increase in enterprise value. It doesn't mean KIE is necessarily a better investment, or indeed that the share price will increase by a higher percentage (they have moved pretty much the same since the Summer lows) - it just means that if all is well and the enterprise values increase by the same percentage, KIE will move up by a (much) higher percentage share price. Note the key part - if all is well. The fact that the share prices (not the EV) have moved up by similar percentages tells you something about the risk perception by the market. Some numbers: ...................COST.............KIE M cap...............180.............150 Cash/Debt............80............(436) EV..................100.............586 10% share price increase: M cap...............198.............165 Cash/Debt............80............(436) EV..................118.............601 % EV change..........18%..............3% It therefore becomes a question of risk appetite - if you want higher risk, and potentially higher reward, buy KIE (but be aware of the risks); if you want low risk but still rewards albeit potentially lower, then buy COST. Or you could just do both - a subtlety lost on the KIE thread.
greg the grinch: Knowing 18 Feb '21 - 10:44 - 524 of 531 0 2 0 Costain (COST) Peel Hunt LLP Buy - 75.00 Costain (COST) Liberum Capital Buy - 80.00 greg the grinch 18 Feb '21 - 16:45 - 525 of 531 Edit 0 0 0 Costain (COST) Greg the Grinch Buy - 380.00 purchaseatthetop 19 Feb '21 - 09:03 - 527 of 531 0 0 0 Greg the grinch (LOONY) - Sell - 0.00
knowing: Costain (COST) Peel Hunt LLP Buy - 75.00 Costain (COST) Liberum Capital Buy - 80.00
imastu pidgitaswell: Construction News struggling to find something interesting to say about it: Costain sees in new year with £100m cash balance 05 JAN 2021 BY DAVID PRICE Costain CEO Alex Vaughan Costain ended 2020 with a net cash balance of £102.5m, the company announced in a trading update this morning. The balance was greater than the £60m-£70m range it had forecast in its half-year results, and also ahead of the £64.9m it reported at the end of 2019. Average month-end net cash also topped £100m in the second half of 2020. A breakdown of its year-end position showed the company had £89.5m in free cash, £61m of cash in joint venture operations and borrowings of £48m. The firm’s cash levels in 2020 were boosted thanks to a £100m rights issue launched in March and completed in June. The brief trading update for the year to 31 December 2020 said the company’s trading had been profitable on an underlying basis since its half-year results and performance had been in line with expectations. The company reported a £90m pre-tax loss in its half-year results, but said its operating profit on an underlying basis was £5.7m. This excluded two problem contracts: the A465 Heads of the Valleys road and the Peterborough & Huntingdon gas-compression station, on which the company had incurred significant extra costs on. Costain also announced its order book ended 2020 at £4.2bn, equalling its value for the end of 2019, with £1.02bn of work secured for 2021. Costain will publish its full-year results for 2020 in March.
ishwar: Trading update looks grand, I think. Should deserve a rerating ?Costain Group PLC Year End Trading UpdateSource: UK Regulatory (RNS & others)TIDMCOSTRNS Number : 5166KCostain Group PLC05 January 20215 January 2021Costain Group PLC("Costain" or "the Group" or "the Company")Year End Trading UpdateCostain, the smart infrastructure solutions company, today issues a trading update for year ended 31 December 2020.Since announcing interim results on 14 September 2020, the Group in responding to Covid-19 has continued to operate productively with effective safety measures in place across all contracts. The Group's underlying trading has remained profitable with good cash generation. New work has also continued to be secured, in line with the Group's strategic ambitions. The Board therefore expects to report full year results in line with expectations.The year-end order book stands at GBP4.2 billion (31 December 2019: GBP4.2 billion), with c GBP1,020 million secured for 2021 (c GBP940 million secured for 2020 at end of FY19). The Group has a strong year-end net cash position of GBP102.5 million, ahead of expectations, (31 December 2019: GBP64.9 million) comprising GBP89.5 million of cash, GBP61.0 million share of cash in joint operations and GBP48.0 million of drawn debt. The average month-end net cash balance for the second half was GBP100.8 million (2019 full year: GBP41.2 million).The Group will be announcing its results for the year ended 31 December 2020 on 9 March 2021.
imastu pidgitaswell: They can't buy as it is in a closed period - until the results are published. The thing about the ballsed-up contracts is that COST have paid almost all of the costs (staff costs, contractor costs, supplies etc). From a cash perspective, there is only potential upside - broadly speaking - from the arbitration process. Regarding cash needed to operate - they just need sufficient liquidity, be it cash in the bank or borrowings, same as any business, but even more so for a long term contract construction company where you pay for stuff ahead of being reimbursed by the client. Also for the reasons they stated at the time of the placement - potential clients do like to see a financially robust company servicing their business, they do not want it to go bust and deal with all of the complexities and expense of that - I have seen it happen professionally and it's a mess when it happens. It is all part of a scoring system that is reduced to just 'pass' or 'fail' in theory, but in practice all of the other scoring (to decide who to award the contract to) is influenced by that initial perception of the company's stability. Basically having net cash on the balance sheet and plenty of it helps. Re selling - me too. Holders seems a bit silly, at these prices, and after the placement at 60p. For me, the question is what needs to happen to turn the share price around. Nobody wants this (from the institutions - I want plenty) - doesn't matter how cheap it gets. I guess the answer is they want to see certainty re these 2 contracts (although I think they're not relevant going forward), and that COST (and others in the sector, e.g. KIE) can generate cash on a consistent basis without regular contract messes. The balance sheet cash, the future income is all there for COST (not so for KIE) - it's all about execution and delivery.
imastu pidgitaswell: hTTps:// Of all the excuses for getting your financial results out late in this extraordinary year, the continuing traffic jam on the A465 is one of the more random. Like the Schleswig-Holstein question in the 19th century, many have long forgotten the roots of the ruck over the £400 million Heads of the Valleys road reconstruction between Merthyr Tydfil and Abergavenny. Not so investors in Costain, who have had this tarmac albatross round their neck for the best part of the past decade. In short, a dispute between the construction company and the client, the Welsh government, over the ever-changing specification and spiralling cost of dualling the A465 is about to come to a head, with a final arbitration on what Costain is owed or not owed. A settlement is so financially significant to Costain, possibly running into tens of millions for a company whose profits in a good year are never much more than £40 million, and so imminent that it has said it cannot issue its half-year figures. Couple that with a £49 million write-off on the abrupt end of a contract to build a gas facility in Cambridgeshire after a bust-up with one of its key clients, National Grid, and the wider view of investors on construction stocks has been confirmed: they remain in the only-touch-with-a-bargepole category. The broader context is the collapse two and a half years ago of Carillion. Corporate historians will recall two hospitals, a dual carriageway near Aberdeen and the redevelopment of Doha for the 2022 Fifa World Cup finals did for Carillion and lifted the lid on the debatable boardroom stewardship of a £5 billion-turnover company. The backdrop is that such construction failures — historically endemic in the industry — are supposed to happen less frequently because, as the sector keeps insisting, lessons get learnt and procurement and management of such contracts is handled in a much more grown-up way these days. The A465 and National Grid contract failings are hammer-on-thumb moments for a company that bangs on about its strategic success in staying close to a handful of key infrastructure clients with which relationships are strong. Costain is a brand that punches well above its weight: even now, after a £100 million fundraiser in the spring and with £140 million of net cash, it attracts a stock market value of only £160 million. Its prospects are rich. The government has vowed to reconstruct our post-Covid economy with a “new deal” policy of build-build-build. Much of Costain’s latest £2 billion order flow is tied to £1 billion of work on the first phase of the HS2 high-speed railway. Costain is no Carillion and, embarrassing as it is, delaying its results because of an unquantifiable financial pothole on a rural road in Wales is probably the right decision. But a cratering of Costain’s share price yesterday on the news is more evidence, if any were needed, that investing in construction companies should come with a Health & Safety Executive warning.
barnesian: Why would anyone buy this share at the moment? If you are already a holder, you will top up on the placing at 60p rather than pay market price over 60p. If you are not a holder, and are long term investor, surely you will wait until after the new shares come on the market to see where the share price settles. If you are a short term investor, there is probably more short term downside than upside to the current share price. I can see that there are sellers who don't want to invest more in this company and don't want to be diluted. But I can't see many buyers before 21st May. My guess is that share price will drift down towards towards 60p as we get near 21st May leaving many investors with a difficult decision. When the new shares are admitted to market on 29th May, then I expect the share price to go up towards 70p as delayed purchasers come in, but the price will be constrained by sellers of the placing hoping for a quick turn.
big brother8: Costain Group Costain steams higher on green light for HS2 Euston tunnels contract The new contract marks the point where the work transitions from design and preparatory work to full detailed design and construction Costain Group - The JV has already prepared the site of the approach tunnels to Euston station Costain Group PLC (LON:COST) shares rocketed as the construction group’s next contract for work on the HS2 rail project was given a green signal. Costain's joint venture company, Skanska Costain Strabag, won a £3.298bn contract to design and build the tunnels coming into the Euston station terminus. As the coronavirus lockdown means there is no construction on-site “apart from safety-critical works”, the contract is not expected to make a significant contribution to the group's profitability until the 2021 financial year. Costain is likely to have a 33% share of the JV, analysts suggested, meaning an estimated contract value of £1.1bn will have formed a large part of the group's £4.2bn order book at December's year end. With the contract lasting for six or seven years, revenues are forecast to amount to around £50mln this year and ramp up to around £200mln of revenues by 2021, analysts at Liberym calculated. Following Boris Johnson’s approval of HS2 on 11 February and the award of this contract from the government, the “marks the point where the work transitions from scheme design and preparatory work to full detailed design and construction”, Costain said, building on initial design and site preparation work carried out so far. The High Speed 2 rail line, which has attracted criticism over the destruction of ancient woodland and over whether the massive spending will produce worthwhile benefits, is due to begin running trains in 2028-2031 depending on the construction timetable Separately, Costain said it has won a £210mln contract by Highways England to design and build an upgrade to a section of the A30 north of Truro in Cornwall due to be complete by the end of 2023. The work includes upgrading an 8.7-mile section between Chiverton Cross and Carland Cross from a single carriageway to a dual carriageway, together with the construction of new junctions, slip roads and bridges. Costain said detailed design work will begin in April with works starting in the coming months once lockdown is lifted. Shares in the company surged 33% to 73.14p on Wednesday morning, though they are still down more than 50% so far this year. “The JV has been awarded the contract despite concerns about its financial strength, noting concerns also about the financial strength of other suppliers like Kier,” analysts at Liberum said. “The stand-by under-writing may have helped.” With profit recognition expected to be cautious and, given the delayed start due to Covid-19, the analysts forecast zero profit contribution in the current financial year, rising to £160mln and £200mln of additional revenues, and £4mln and £7mln of additional underlying profit in the 2021 and 2022 financial years. “We have heard elsewhere in the industry that the terms of the contracts are attractive with caps and collars limiting the risk of the supply chain, and limiting the cost to HS2. We assume neutral working capital as it uses a project bank account and therefore the increased profit should flow directly to the financial position, resulting in expected broadly neutral net cash in FY 2021,” the analysts noted. As Costain has a £99m actuarial pension deficit, Liberum still believes the company needs to raise up to £100mln.
Costain share price data is direct from the London Stock Exchange
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