Costain has announced a 'strong' performance in its results for the half year ending 30 June 2015.

The company experienced increases in revenue and underlying operating profit, a record order book and a 15% increase in the interim dividend for the first six months of 2015.

Group revenue improved to £621.1m, compared to £519.1m in 2014, while underlying operating profit was up 17% to £13.1m (£11.2m in 2014).

The infrastructure division performed the best overall, with profit rising to £23.6m from £16.9m in 2014.

However, the natural resources division posted a loss of £7.4m.

Costain said the loss reflect further costs in relation to the completion of the legacy Greater Manchester Waste Disposal Authority PFI contract awarded in 2007.


It was reported in the Group's 2014 full-year results that all 46 facilities on the contract were either fully completed or in the warranty period under the terms of the contract during which further work and plant modifications will be completed.

Costain states during the course of the further work, a number of issues were identified and are being addressed.

Andrew Wyllie CBE, Chief Executive, commented: "We have delivered another strong performance in the first half of the year. In addition to growth in revenue and profit, our order book now stands at a record £3.7bn.

"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 following the 17% increase in underlying operating profit in the first half of the year 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% increase in dividend."

(LM/MH)