Costain's orderbook jumps 20% higher to record £2.4bn

Costain is successfully shedding off the worst effects of the global slowdown - since the beginning of the year, the group's forward order book has jumped by 20% to a new record level of £2.4 billion.

An in addition to that, Costain has preferred bidder positions worth more than a further £800m.

In an interim management statement this morning, covering the period from 1 January 2009 to the current date, Costain said: “We operate in market sectors where there is a commitment to expenditure and have won a number of high quality contracts. The group's strategy is providing resilience in these challenging times.”

Over £900m of revenue [i.e. turnover] has been secured for 2009, which is ahead of the comparable figure last year.

Tendering activity for new work remains high in infrastructure, water, waste, energy, health and education.

Civil Engineering - overall

These operations represent over 85% of Costain’s order book.

Civils – environment

Costain, in joint venture, won a major 10-year contract with Severn Trent with an estimated total value of £400m, commencing with the next Asset Management Period, AMP5, which begins in April 2010.

Severn Trent is a new client for Costain for the AMP programme.

Civils – infrastructure

Includes Costain’s in the highways, rail, nuclear and airport sectors.

Costain, in joint venture, was awarded a five-year £200m Managing Agent Contractor ('MAC') contract to carry out routine operational and maintenance services and deliver improvements on the motorways and trunk roads in Area 12, which covers Yorkshire and North Lincolnshire.

This is Costain’s third MAC contract.

Costain, in joint venture, was selected as one of several contractors for Crossrail's advance works framework agreement, which has a potential value in excess of £250m and a four-year duration. 

Building

The focus is on improving performance.

Spain

Conditions remain challenging. Construction of the 800-berth yacht marina, adjacent to the Spanish border with Gibraltar, is progressing well and the first phase will be completed in 2010. 

Costain has a £100m cash pile and no significant borrowings. 

The average cash balance since the year end is running slightly ahead of the average for 2008.