AGM and IMS


 

TIDMCOST 
 
RNS Number : 4207L 
Costain Group PLC 
06 May 2010 
 

Costain Group PLC 
("Costain" or "the Group") 
AGM and Interim Management Statement 
Costain is issuing, ahead of its AGM to be held later today, an Interim 
Management Statement covering the period from 1 January 2010 to the current 
date. 
Overview 
Following on from the excellent performance in 2009, the Group has continued to 
perform well and in line with the Board's expectations. 
The Group's operations continue to benefit from its focus on targeted blue chip 
customers whose major spending plans are underpinned by strategic national 
priorities, regulatory commitments or essential maintenance requirements in 
chosen sectors. 
The Group continues to demonstrate its resilience in a difficult economic 
environment. 
Building on our success and as announced in March, we are now implementing the 
next stage of our strategy, 'Choosing Costain', which will ensure that the Group 
enhances its position as one of the leading players in the industry. This will 
expand further Costain's market position across the design and engineering, 
construction, and operations and maintenance spectrum. This is designed to 
enhance and broaden the spread of business and earnings profile over the 
medium-term. 
Order book 
As a result of a number of significant new contract awards since the beginning 
of the year, the Group has maintained its order book at the record year-end 
level of GBP2.6 billion. In addition, it has preferred bidder positions of over 
GBP600 million, ahead of the level at the end of 2009. 
To date over GBP950 million of revenue has been secured for 2010. 
Since we reported the Group's results in March, the level of tendering activity 
has remained high in our targeted growth markets of Infrastructure, Environment 
and Energy & Process. 
Operations 
Our Infrastructure division, which focuses on the Group's activities in the 
highways, rail and airports sectors, continues to perform well. Since the 
beginning of the year, Costain, in joint venture, has been awarded a five-year 
GBP115 million Managing Agent Contractor ('MAC') contract to carry out routine 
operational and maintenance services in Area 14, which covers the North-East of 
England. This fourth MAC contract has helped to establish Costain as a major 
player in the UK highways maintenance market. 
The Group has also been appointed, in joint venture, as one of the Delivery 
Partners to the Highways Agency's National Framework Contract involving the 
delivery of up to GBP2 billion early schemes in the Managed Motorway Programme. 
Costain, in joint venture, has also been appointed to construct the Royal Oak 
tunnel portal, part of the enabling works for the important Crossrail project 
 
In Environment, which includes the Group's activities in the water, waste and 
marine sectors, Costain has secured a five-year contract with Welsh Water for 
the next Asset Management period, AMP5, which began in April 2010. This 
contract, in addition to other AMP5 contracts previously secured, reinforces the 
Group's position as one of the leading players in the UK water sector. 
Work continues on a GBP397 million four-year contract to deliver part of the 
Greater Manchester Waste Disposal Authority's (GMWDA's) PFI Waste and Recycling 
Contract, the largest municipal waste contract in Western Europe. We are 
currently pursuing, in joint venture, a number of waste PFI opportunities. 
The Energy and Process division, which focuses on the Group's activities in 
nuclear, power and hydrocarbons & energy, continues to perform as expected and 
offers significant opportunity for future growth. Work is progressing to 
programme on the major Evaporator D nuclear project at Sellafield. 
In Spain, market conditions remain challenging. No land sales are anticipated in 
2010 and actions have been taken to reduce costs. The 600-berth yacht marina, 
adjacent to the Spanish border with Gibraltar, is close to completion and will 
become operational in the summer. 
The Community division, which includes the Group's activities in the health, 
education and retail sectors is, as previously reported, being scaled down as we 
focus on more attractive opportunities. The division is trading in line with our 
expectations. 
Financial Position 
There has been no material change in the financial status of the Group, which 
continues to have a strong cash position of in excess of GBP100 million, and has 
no significant borrowings. 
Outlook 
With trading in line with our expectations and an order book maintained at the 
record year-end level, the Board is pleased with the start to the current year. 
The economic environment remains challenging but, with a strong operational 
business and a strategy for the ongoing development of the Group, the Board 
remains confident that the outcome for 2010 will be in line with its 
expectations. 
 
6 May 2010 
 
ENQUIRIES: 
+----------------------------------+--------------------------+ 
| Costain Group PLC                | Tel: 01628 842 444       | 
+----------------------------------+--------------------------+ 
| Graham Read, Communications      |                          | 
| Director                         |                          | 
+----------------------------------+--------------------------+ 
|                                  |                          | 
+----------------------------------+--------------------------+ 
| College Hill                     | Tel: 020 7457 2020       | 
+----------------------------------+--------------------------+ 
| Mark Garraway                    |                          | 
+----------------------------------+--------------------------+ 
| Adam Aljewicz                    |                          | 
+----------------------------------+--------------------------+ 
 
 
Notes to Editors 
Costain is an international engineering and construction group with a reputation 
for technical excellence founded on more than 140 years of experience. The 
Company's business segments are in Infrastructure (Highways, Rail, Nuclear and 
Airports), Environment (Water, Waste and Marine), Community (Health, Education 
and Retail), Energy & Process and Property Development. 
The Company is focused on market sectors where it expects there to be a 
significant investment over the next few years and where it can build and 
maintain strong positions. 
It has worked on a number of significant infrastructure projects in the UK, 
including the St Pancras railway station and the Channel Tunnel Rail Link, and 
is currently working on a number of significant projects including the municipal 
waste treatment infrastructure for the Greater Manchester Waste Disposal 
Authority and EVAP D at Sellafield, one of the largest nuclear projects in the 
UK. 
For further information please visit the company website: www.costain.com 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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