Strong performance in infrastructure offsets losses in natural resources and Spain
Costain has posted solid results for the year to December 2014, with revenue breaking the 拢1bn mark, and a record 拢3.5bn order book.
Revenue rose 17% to 拢1.1bn, up from 拢960m, while pre-tax profit grew 75% to 拢22.6m, up from 拢12.9m.
Costain鈥檚 results were boosted by strong performance and profit growth at its infrastructure division, offsetting losses in its smaller natural resources division and land development venture in Spain.
The firm鈥檚 infrastructure division - which delivered major schemes including the redevelopment of Reading station (pictured) last year - posted a 40% increase in revenue to 拢785.2m, up from 拢560.6m, with operating profit grew 22% to 拢36.8m, up from 拢30.1m.
However Costain鈥檚 natural resources division posted an operating loss of 拢3.2m, after making a 拢9.5m operating profit the previous year, with the loss attributed to issues on its Manchester waste PFI contract, awarded in 2007.
The natural resources division posted a 16% decrease in revenue to 拢335m, down from 拢397.6m.
Meanwhile, the firm also posted a 拢1.3m after-tax loss on its 鈥渘on-core鈥� land development activity in southern Spain, where the firm holds a portfolio fo 500 hectares of land in a 50:50 joint venture with Santander Bank.
Costain鈥檚 order book grew 17% to 拢3.5bn, up from 拢3bn, with 90% of the order book comprising repeat orders, which the firm attributed to its strategy of focusing on long-term contracts with major infrastructure clients.
Work added to the order book included jobs for Network Rail, the Highways Agency, National Grid, BAE Systems and Southern Water.
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