In a trading update today, ahead of its interim results for the first half of 2015, Costain reported that everything was going to plan and in in line with the board’s expectations.
Thanks to its joint ventures, the order book has increased to £3.7bn, which is a record high for the company. Six months ago it was £3.5bn; a year ago it was £3.2bn. More than 90% of the order book is repeat orders and its biggest new wins are joint ventures with other contractors.
New business picked up in the past six months include the development of the M4 corridor around Newport for the Welsh government (a £750m contract in joint venture with Vinci); the underground link between the Crossrail and Bakerloo Line platforms at Paddington station (a £40m contract in joint venture with Skanska); and two sections of the A14 improvement scheme for Highways England (£598m and also in JV with Skanska).
Costain said that it also maintains a strong preferred bidder position of more than £500m, and tendering activity remains high.