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Costain first-half profits at £13M, with infrastructure division thriving

Costain has reported its January to June half year, pre-tax, underlying profits are £13.1M, up from £11.2M for the same time last year, with a thriving infrastructure division overshadowing losses in natural resources.

Overall revenue increased to £621.1 million, up from £529.1 million for the same period in 2014. There’s a record forward order book, up 16% to £3.7 billion compared to £3.2 billion for the same period in 2014.

In terms of business segments, infrastructure showed a group operating profit of £23.6M, with total revenue at £475.2M, compared to £358.7M for the same time in 2014. Natural resources made a £7.5M loss, with total segment revenue at £145M, down from £169.4M in 2014.The loss is in relation to a legacy Greater Manchester Waste Disposal Authority PFI contract awarded in 2007.

The results come days after the company announced its acquisition of Rhead Group for £36M.

Costain chief executive Andrew Wyllie (pictured) said: “We have delivered another strong performance in the first half of the year.  In addition to growth in revenue and profit, our order book now stands at a record £3.7 billion.

“Costain has an established reputation for delivering innovative integrated services that enables the Group to win large, long-term contracts addressing the UK’s National needs in energy, water and transportation.  

“Costain is accelerating its growth and following the 17% increase in underlying operating profit in the first half of the year is on course to deliver a result for the year at the upper-end of the Board’s expectations.  Our confidence for the future is reflected in the 15% increase in dividend.”

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