Trading Update

RNS Number:7588W
Costain Group PLC
11 January 2006


Costain Group PLC

Trading Update


Costain Group PLC ("Costain" or "the Group") will announce preliminary results
for the year ended 31st December 2005 on 15 March 2006.  Ahead of entering its
close period, it is issuing a brief trading update.


Following his recent appointment as Group Chief Executive, Andrew Wyllie
instigated a thorough business review which has confirmed that the overall
result for the year will be in line with the Board's expectations at the time of
the interim results announcement in September.


The review has confirmed that the overall strategic direction of the Company
remains appropriate. Alongside de-risking the business and developing long-term
customer relationships, there will be greater emphasis on establishing market
leading positions in selected sectors, which will assist in delivering long-term
sustainable profit streams. Resources will principally be deployed in support of
business development activities where strong market positions can be established
and maintained.


These actions will ensure that Costain achieves its new objective for the next
three years of double-digit growth in both volumes and profitability.


The preliminary results announcement will set out the Board's full strategy for
growth including confirmation of the markets and geographies in which the Group
will seek to operate.


The year has seen significant contract wins especially in water and roads. In
water, where Costain has a market-leading position, a number of the five year
framework water contracts have the option of being extended by a further five
years.  As at 31 December 2005, the Group had a record forward order book of
#1.9bn.


Separately, Charles McCole, Finance Director, has notified the Board that he
wishes to pursue new opportunities in the future and does not feel able to give
a long term commitment to the Company. He has agreed to remain with the Company
for a transitional period and so will leave later this year.  The Company has
started the process to find a suitable replacement.


Andrew Wyllie, Group Chief Executive, commented:


"My initial review confirms that Costain is a business with a strong brand, a
high-quality team and a very strong order book.  It has an excellent quality and
visibility of earnings going forward which, when coupled with our actions will
help achieve the new objective of double-digit growth in both volumes and
profitability over the next three years.


"Charles McCole has played an important part in the Company's performance over
recent years and we wish him well for the future."


                                                                 11 January 2006


Enquiries:


Costain Group PLC                            Tel: 01628 842444

Andrew Wyllie, Chief Executive

Charles McCole, Finance Director



College Hill                                 Tel. 020 7457 2020

Mark Garraway

Matthew Gregorowski


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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