Costain profit leaps 30%

Costain has lifted its interim pre-tax profit to £6.1m, 30% higher than the figure in the comparable period of last year.

Announcing the group's financial figures this morning (Wednesday), chairman David Jefferies said: "Costain has produced an excellent set of results. The recovery phase is complete."

It has been a hard slog to get Costain back on an even keel but Stuart Doughty, chief executive, has pushed through a plan over the past two years that has at last put the group back into the mainstream of construction.

Costain's operating margin has jumped ahead to 2.1% and is rising steadily towards Doughty's target figure of 3% while the 17% climb in turnover is ahead of the planned 15% organic growth rate.

The orderbook has increased to £820m and there is a further £300m of work currently at preferred bidder stage. In 2000, less than 50% of the forward orderbook was in partnering/framework agreements. This figure has now climbed to 85%.

Two senior appointments are Stephen Prendergast, managing director international, previously Amec's business development director, and Stephen Wells, business development director, who was managing director of Biwater Leisure.