Group reports significant increases in revenue and underlying operating profit in finals
Companies: Costain Group PLC
Engineering Group Costain hiked its dividend by 15% on Wednesday as the Group published strong full-year results, reporting significant increases in revenue and underlying operating profit.
Group revenues, including shares of joint ventures, increased 30% to £1.7bn, up from £1.3bn in 2015, with underlying operating profit jumping 24% to £41.1m. As a result, the Board has recommended a final dividend of 8.4p, increasing the total divi for the year by 15% to 12.7p.
Costain said focusing on customers had delivered a high-quality order book, with forward orders hitting £3.9bn (90% of which are repeat orders). Over £1.2bn in revenue has already been secured for 2017, and £2.7bn of revenue has been secured for 2018 and beyond.
Chairman Dr Paul Golby said he was pleased to report continued growth in revenue and profit:
"Our major customers are committed to spending billions of pounds to improve people's lives by enhancing the UK's energy, water and transportation infrastructures. In order to deliver solutions to their increasingly complex requirements, Costain will continue to provide the broadest range of innovative integrated services and technology-based solutions."
He added that the firm's performance was the result of its 'Engineering Tomorrow' strategy and the deliberate acceleration of growth through acquisitions and organically.
Shares in Costain jumped 4.5% as the market opened on Wednesday, trading at a P/E of 17.8.
