Costain approached by US to help build Iraq

Civil engineering group Costain has admitted that it has been approached by a number of American contractors about rebuilding Iraq after the war.

Chief executive Stuart Doughty confirmed: "We're chatting with some major players about our opportunities - although how it will turn out, we can't say yet."

He added that it was impossible to say how much or what sort of work Costain might win, but claimed that the company's "considerable experience" in the Middle East would boost its chances of winning work.

The move comes just a week after the Department of Trade & Industry said there would be no contracts for British companies after the conflict.

But companies in the United States have now agreed to take on UK subcontractors to help rebuild Iraq's bridges, hospitals and roads at an estimated cost of £1bn.

Yesterday, Costian announced that its full-year profits increased 30% to £11.3m before tax, on sales 17% higher at £543m for the year.