Utility firms boost Costain order books

Mar 11 2010 by Iain Laing, The Journal

BUILDING firm Costain has shrugged off fears over deep post-election spending cuts as it said it was "looking to the future with confidence".

The company said its order book reached a record £2.6bn in 2009 as its focus on big-spending major clients helped it weather recession.

Maidenhead-based Costain has piled up infrastructure deals from utility firms, boosting orders by 30% last year. Repeat customers such as the Highways Agency account for more than 80% of its workload, while it has secured £900m in revenues for 2010.

Costain chairman David Allvey said: “We are confident that our position in markets underpinned by strategic capital expenditure, regulatory commitment or essential maintenance will continue to stand us in good stead.”

Pre-tax profits for 2010 fell 21% to £18.1m although this was due to lower interest payments on Costain’s cash balances. At the operating level, the firm grew profits by 14% and revenues hit £1.06bn.