Costain Group H1 Profit Rises, Orders Down; Sees Profit Growth In FY22

Costain Group PLC (COST.L), a construction engineering company, reported Wednesday that its first-half profit before tax increased to 11.2 million pounds from last year’s 9.1 million pounds.

Basic earnings per share were 3.3 pence, down from 3.5 pence a year ago.

Adjusted profit before tax was 13.3 million pounds, compared to prior year’s 9.4 million pounds. Adjusted basic earnings per share were 3.9 pence, compared to 2.8 pence a year ago.

Adjusted operating profit went up 21.7 percent to 14.0 million pounds in line with management expectations.

Group revenue climbed 19 percent to 665.2 million pounds from last year’s 556.8 million pounds, reflecting primarily volume growth and inflation protection mechanisms within contracts.

Order book was 2.7 billion pounds at the end of the first half, down 32.5 percent from last year’s 4.0 billion pounds, reflecting the timing of major contract bids and client procurement.

Looking ahead for fiscal 2022, adjusted operating profit is expected to show good growth year-on-year and expectations are unchanged.

Full -year order book is expected to strongly increase with award decisions on further high-quality contracts expected in H2 22 and H1 23.

Alex Vaughan, Chief Executive Officer, said, “While we remain mindful of the macro-economic backdrop, we are pleased with the quality and scale of our order book, including secured multi-year infrastructure programmes, the volume of preferred bidder work and the additional long-term framework contracts which will deliver continued progress in 2023 and beyond.”

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