Costain swings to first-half profit

Construction and engineering firm Costain has said it is on track to meet expectations as it swung to a profit and grew revenue in the first half of the year.

The business said it expects to benefit over coming years from the Government’s commitment to invest in the UK’s infrastructure.

It said pre-tax profit had hit £9.1 million in the six months to the end of June, up from a £92.3 million loss a year earlier.

Revenue rose 21% to £556.8 million, the business said.

Chief executive Alex Vaughan said: “We are pleased to report an improved level of profitability and a strong cash position, demonstrating the focus on trading performance and cash generation across the business.

“We continue to be successful in winning new contracts, building on last year’s strong platform and making the most of the significant market opportunities.

“Our clients across all our chosen markets are continuing to progress their investment plans and to prioritise investment to meet their needs for decarbonisation, digitisation, levelling up and performance improvement.”

The company, which has deals in place to work on the HS2 rail project, won a series of new contracts in the first half, worth more than £334 million.

It said it has “good visibility” on what contracts will complete during the second half, so is confident of meeting full-year expectations.

Mr Vaughan added: “We are busy bidding for new work across all of our markets, combining Costain’s core strengths and our broader service offering in line with our strategy.

“Importantly, we are being selective in our approach to tendering, focusing on bidding discipline and risk management.

“We have good visibility on the completion of contracts for the remainder of this year which gives us confidence in delivering full-year results in line with our expectations.”