Costain Group has reported a substantial boost in the value of its order book, following growth across several of its key market sectors.
In a trading update outlining the group’s financial position at the end of FY2024 issued this morning, Costain reported a £1.5 billion increase of high‐quality work added to its forward order book, now valued at £5.4 billion (FY2023: £3.9 billion).
The contractor finished the year strong, growing in strategic markets with more work in the Water and Rail sectors in H2 2024, while expanding its Tier One customer base.
Consultancy Services also saw growth following the Front-End Engineering Design (FEED) contract for the bp joint ventures Net Zero Teesside Power and the Northern Endurance Partnership, as well as a second hydrogen FEED contract.
“This, together with growth on existing frameworks and attractive levels of bidding activity, gives the group increasing confidence in its ability to deliver further growth in operating profits and margins,” said Costain.
Group adjusted operating profit for FY2024 is expected to be between £41.9 million and £43.3 million, with net cash of £160 million at the end of the year.
“Trading for FY 24 has been positive with group adjusted operating profit expected to be in line with market expectations and net cash at the end of the year in line with market consensus,” said Costain.
In December last year, a joint venture between Costain and Siemens Mobility was awarded a £300 million long-term contract to deliver high-voltage power supply systems for the entire 225-km route of HS2.
The JV, part of the Rail Systems Alliance, will be responsible for the design, manufacture, installation, testing, commission and maintenance of power between London and Birmingham.
Following completion of the design and build contract there will be a separate seven-year maintenance contract, valued at £32 million, with optional extensions.
This adds to Costain’s HS2 portfolio, including the recent £400 million contract to deliver tunnel and lineside mechanical and electrical systems.
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