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Costain’s group revenue for the six months to 30th June was up 19% to £665.2m (2021 H1: £556.8m). Pre-tax profit was up 23% to £11.2m (2021 H1: £9.1m).
The order book is down, reduced to £2.7bn as of 30th June 2022, compared to £4.0bn a year before and £3.4bn at the start of 2022, but bidding activity is reported to be high.
Chief executive Alex Vaughan said: "In the first half of the year we delivered a strong operating performance reflecting volume increases and the inflation recovery mechanisms built into our contracts. Our adjusted operating profit increased by 22% year-on-year, and we had a strong adjusted free cash performance, ending the period with £95.9m, with a positive net cash flow expected in the second half.
"Despite material availability and inflation challenges, we have managed the supply chain pressures effectively, while delivering a robust operational performance with new contracts being won on attractive commercial terms with appropriate risk. Our four chosen markets of transport, water, energy and defence remain resilient, and the pipeline of potential new business is healthy. We undertook a very high level of bidding activity in the first half, with award decisions expected in H2 2022 and in H1 2023.
"In July, the company experienced a fatality on one of its rail projects. We are shocked and saddened by this tragic incident and we, and our subcontractor, are working with the authorities and our client in an investigation to fully understand its causes. We are focused on supporting the family and on the wellbeing of our colleagues.
"While we remain mindful of the macro-economic backdrop, we are pleased with the quality and scale of our order book, including secured multi-year infrastructure programmes, the volume of preferred bidder work and the additional long-term framework contracts which will deliver continued progress in 2023 and beyond."
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