Further growth planned at Costain as profits and orders rise
Costain's year-end results for 2015 show increases in revenue and underlying operating profit and a record order book.
Chairman David Allvey said that the company must continue to grow both organically and by targeted acquisitions to meet clients' requirements for dealing with a reduced number of suppliers on larger contracts.
Revenue grew to £1,316.5m from £1,122.5m and the operating profit was £33.2m, up from £28.7m in 2014.
The order book value of £3.9bn is 11% higher than 2014. Over £1.1bn of revenue is secured for this year amd £2.8bn for 2017 and beyond.
Chairman David Allvey said: "We have again delivered a strong performance with growth in both revenue and profit. Our order book has reached a new record level of £3.9 billion, providing good forward visibility.
"Our success is the direct result of our 'Engineering Tomorrow' strategy, with focused organic growth and targeted acquisition. We further reinforced Costain's position as a tier-one supplier providing the broad range of innovative integrated services demanded by our major customers who are spending billions of pounds enhancing the UK's energy, water and transportation infrastructures."
He referred to the multi-billion long-term investment programmes aimed at addressing the UK's urgent strategic national infrastructure needs, saying that they provide substantial business opportunities for Costain.
The changing nature and increasing complexity of the requirements of the major customers continues to change fundamentally the way in which they procure services and work with their supplier partners, said Allvey. Major customers are consolidating their supply chains as they seek to work in a more strategic and collaborative manner with a reduced number of preferred tier-one providers through larger longer-term contracts. "Therefore, to be successful in the future, and to address one of our key business risks, we must continue to grow the business both organically and by targeted acquisition, ensuring that we have the scale and capability to satisfy the full range of our customers' service needs to deliver their increasingly large-scale and complex requirements," he said.
He added: "With 17% revenue growth and the acquisition of Rhead Group in 2015, we are making good progress towards achieving our stated objectives."
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This article was published on 2 Mar 2016 (last updated on 3 Mar 2016).