Loss follows 拢50m writedown after project delays and disputed claims
Costain has reported a pre-tax loss of 拢61.7m after being hit by contract write-downs and the closure of its international division.
The group reported the loss in its full year results to 31 December 2006, compared with a profit of 拢25m in 2005. Turnover rose to 拢886.3m from 拢773.2m during the period.
The loss follows a 拢50m writedown in December, which the firm blamed on project delays and disputed claims.
The closure of the international division, together with its result, caused a loss of 拢27.3m. Provisions on contract writedowns amounted to 拢47.2m. The firm also suffered from poor performances in its building and COGAP divisions.
Chairman David Jefferies said: 鈥淟ooking to 2007, and following the contract write-downs, we have entered the year with greater clarity. We are tightly managing out the few remaining legacy contracts and, having reviewed the group鈥檚 trading prospects in detail, the board believes that the group should see a significant recovery in underlying performance this year.鈥�
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