Pre close trading update

RNS Number:4610L
Costain Group PLC
10 January 2008




Costain Group PLC
("Costain" or the "Group")


Pre-close Trading Update & Board Changes


PRE-CLOSE TRADING UPDATE

Ahead of the announcement of the Group's results for the year ended 31 December
2007, Costain is providing the following update on trading.


Key points:

  * Following a significant recovery in profitability during the year, results
    overall for the period are anticipated to be in line with expectations.

  * The Group's Civil Engineering division, which accounts for approximately
    80% of the forward order book, continued to build on the strong performance
    seen in the first half.

In December, in line with its strategy of actively trading its PFI portfolio to
re-invest in the bidding for new projects, the Group sold its 50% investment in
the 30-year Sirhowy Enterprise Way concession in Wales to John Laing, which
already owned the remaining 50%.

  * The Building division continued to make steady progress throughout the
    year following the remedial actions put in place by management, including a
    re-alignment into key sectors.

  * The Group's oil & gas division, COGAP, performed ahead of expectations as
    a result of a refocused strategy, a good order book and much improved
    productivity levels.

  * The Group continued to manage out certain legacy contracts, in particular
    at Costa Azul and Pemex, where the projects are nearing completion and
    commercial discussions are ongoing regarding the final handover of both
    contracts.

  * The Group's property development division in Southern Spain completed a
    number of small transactions although a major land sale expected during the
    second half has been delayed and, consequently, the result for the division
    was below expectations.  The Board remains confident in the medium- to
    longer-term outlook for the division and this view has been reinforced
    during the year by securing the marina development project near Gibraltar in
    the second half of the period.

  * The forward order book remained satisfactory and the Group has a growing
    level of preferred bidder positions, acquired as the Group continued to
    build on its position in key market sectors.

Costain has recently been appointed as preferred contractor for the SPV on the
Greater Manchester Waste Disposal Authority's PFI Contract. The capital works
programme valued in the region of �300 million involves constructing 45
facilities on 28 sites with completion in 2011.  The Group has been awarded an
advance works order valued at �7 million to progress detailed design and
commence early mobilisation.

Costain has also been appointed as preferred bidder to build a new campus for
the University of Worcester worth �70m. Construction is expected to begin in the
summer with a completion date of August 2009.

  * In view of the anticipated outturn for the year, the Board reaffirms its
    intention to resume dividend payments and expects to recommend a dividend of
    0.5p per share in respect of the year ended 31 December 2007.


Andrew Wyllie, Chief Executive, commented:

"We have delivered a strong recovery during the year and expect to announce
results in line with expectations.  Looking to 2008, the recent successful
equity fund raising, combined with extended and enhanced banking and bonding
facilities, leaves the Group well placed to capitalise on the many opportunities
available to it in its chosen market sectors."


BOARD CHANGES

Costain announces that James Morley (58) has been appointed as a non-executive
Director of the Group with immediate effect.  Mr Morley is also appointed
Chairman of the Audit Committee in succession to David Allvey, who became
Chairman of the Group on 1 January 2008.

Mr Morley has over thirty years of senior finance and operational experience in
a diverse career spanning a range of industries and businesses including Primary
Insurance Group (Chief Operating Officer); Cox Insurance Holdings (Group Finance
Director); Arjo Wiggins Appleton (Group Finance Director); Guardian Royal
Exchange (Group Executive Director, Finance); and Avis Europe Plc (latterly as
Deputy Chief Executive and Chief Financial Officer).

Mr Morley is also a non-executive Director of a number of companies including
The Innovation Group Plc, WS Atkins Plc and Bankers Investment Trust.  There are
no details to report in respect of Listing Rule 9.6.13 (2) to (6).

Additionally, with immediate effect, Mr John Bryant will become the Group's
first Senior Independent Director and consequently, Mr Mike Alexander, who
joined Costain as a non-executive Director in July 2007, will become Chairman of
the Remuneration Committee.


David Allvey, Chairman, commented:

"We are delighted to welcome James to the Board.  He has a wealth of experience
acquired over a highly successful career and we will benefit from his insights.
His appointment, coupled with our other changes, will ensure the Board is
well-equipped as the Group moves into its next stage of development."



FULL YEAR RESULTS

The full-year results will be announced on Wednesday 12 March 2008.  A
presentation for analysts will take place at the offices of College Hill, The
Registry, 3 Royal Mint Court, London, EC3N 4QN at 09.30 that morning.



                                                                 10 January 2008


ENQUIRIES:
Costain Group PLC                                             Tel: 01628 842 444
Andrew Wyllie, Chief Executive
Tony Bickerstaff, Finance Director
Graham Read, Public Relations

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
END

TSTUKRWRWRRARAR
Costain (LSE:COST)
過去株価チャート
から 9 2024 まで 10 2024