Contractor bolstered by strong infrastructure performance
Contractor Costain has seen pre-tax profit jump 52% on the back of strong performance from its infrastructure division.
The firm also saw a 2% rise in revenue in the six months to 30 June 2012 to 拢478m, compared with 拢469m over the same period last year.
Infrastructure accounted for 58% of the firm鈥檚 revenue in the first half of 2012, up from 46% in 2011. Plus, the division鈥檚 operating profit nearly doubled to 拢10.9m from 拢5.7m over the period.
The firm has recently seen a big win as part of a joint venture awarded a 拢108m contract to upgrade the A8 in Northern and as a partner in building ventilation and access shafts at Eleanor Street, London, for Crossrail.
Plus, it continues to be a a leading contractor to the Highways Agency.
Andrew Wyllie, chief executive of Costain, said: 鈥淭his is absolutely the result of our clear strategy to focus on the customers that are spending - those that have to address big needs in our society.鈥
He added that 90% of the firm鈥檚 order book was made up of repeat customers.
However, the firm鈥檚 environment and energy divisions both saw a decline in revenues of 20% to 拢127m and 拢70.5m respectively.
But Wyllie said that he was not concerned because 鈥渢he business is run as a whole鈥 and currently infrastructure had the most opportunities .
He said he expected to see increased opportunities in the environment and energy sectors as the water sector enters its next regulated period of spending in 2014 and the firms seek to meet the country鈥檚 growing energy needs over the next decade.
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