Costain reports strong performance and PFI deal to significnatly reduce its pension deficit

Costain has transferred its interest in a portfolio of six PFI contracts in a bid to reduce the firm鈥檚 pension deficit by 拢22m.

In an interim management statement released today the company said that the deal would significantly reduce its pension deficit and result in a reduction in the group鈥檚 future annual cash contributions into the pension fund. The group鈥檚 pre-tax profit for the end of the year will also benefit from an additional 拢7.5m as a result of the deal.

In the same statement the contractor reported a strong performance for the first half of 2010 and said it had secured around 拢700m of revenue for 2011 and had forward orders of around 拢2.4bn.

Major contract awards since 30 June include the Bond Street station upgrade and a 10-year nuclear framework contract for Magnox South as well as a cable tunnel contract for National Grid. In addition, the group is currently preferred bidder on contracts with an aggregate value of more than 拢400m.

Looking forward the company said whilst challenging market conditions are set to continue for the foreseeable future, it expects to report continued progress at the year-end in line with its expectations.

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