Costain Group today recorded an operating profit of £41.1million – a 24% increase year-on-year.
Chairman Paul Golby said the firm’s customers were ready to spend billions.
“I am pleased to report that Costain has delivered another strong result, with continued growth in both revenue and profit, and has maintained a record high quality forward order book,” he said.
“Our major customers are committed to spending billions of pounds to improve people’s lives by enhancing the UK’s energy, water and transportation infrastructures. In order to deliver solutions to their increasingly complex requirements, Costain will continue to provide the broadest range of innovative integrated services and technology-based solutions.
“The group’s continuing success is, therefore, the direct result of its ‘Engineering Tomorrow’ strategy and the deliberate acceleration of growth, both organically and by targeted acquisition.
“Costain is well-positioned to take advantage of the opportunities that lie immediately ahead and this,combined with the good visibility we have over the medium-term, reinforces our confidence for the
future.
“That confidence is reflected in the recommendation to increase the total dividend for the year by 15% and I look forward to reporting on future progress.”
Costain said it recognised an uplift in the oil and gas market at the end of 2016.
Its financial report read: “Costain’s programme management services to Ithaca on the Stella field development continue to programme, as well as the ongoing support services to Total and Phillips 66 at their Immingham refineries.
“There was a noticeable increase in new business opportunities towards the end of 2016 as customers restructure their operations and investment projects to accommodate prevailing market conditions, providing us with some
improvement in visibility of potential workload in 2017.”
Costain also made strides in its nuclear work, winning contracts for Sellafield’s design and delivery partner framework. Its also carrying out advance works for EDF at Hinkley Point.
The group has a cash balance of £210.2million and borrowings of £70million.
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