NEERING consultancy Costain yesterday reported growth in both revenue and profits for the first half of the year, citing growth in infrastructure as the main reason behind the increase.
Half-year revenue was £601.5m, up from the previous total of £504m, while profit had risen by 42 per cent to £10m. The company, which is currently working on the major redevelopment of London Bridge station, also reported a record order book valued at £3.76bn.
The strong results came despite losses made in the firm’s Natural Resources division after costs in connection with a PFI contract in Manchester rose unexpectedly .
The strong results saw the board awarding shareholders a higher dividend of 3.75p per share, an increase of 15 per cent on the previous 3.25p.
Andrew Wyllie, chief executive, said: “Costain has an established reputation for delivering innovative integrated services that enables the group to win large, long-term contracts addressing the UK’s national needs in energy, water and transportation. Costain is accelerating its growth and… is on course to deliver a result for the year at the upper end of the board’s expectations.
“Our confidence for the future is reflected in the 15 per cent increase in dividend.”
Markets reacted warmly to the report, with Costain shares jumping 22p, a 6.35 per cent rise, to finish at 368.5p, 1.25p below their year-high.