Costain increases 2013 full year dividend by 7%

DividendMax Ltd.

Costain increases 2013 full year dividend by 7%


Underlying operating profit up 12% to £27.4 million (2012: £24.5 million)

Increase of 10% in adjusted profit before tax to £31.0 million (2012: £28.1 million)

Adjusted basic earnings per share increased by 11% to 44.1 pence (2012: 39.7 pence)

Forward order book up 25% to £3.0 billion (2012: £2.4 billion): over 90% of order book comprises repeat orders and over 90% lower risk cost reimbursable forms of contract

£57.7 million year-end net cash balance (2012: £105.7 million), reflecting the anticipated transition to lower risk cost reimbursable contracts, reduced levels of advance payments and increasing support services revenues

Acquisition of EPC Offshore Ltd, a specialist oil & gas project management services company, and launch of Costain Upstream, to provide services across the life-cycle of upstream offshore oil and gas assets

Recommended increase in final dividend for the seventh successive year, taking the total for the year to 11.5 pence, a 7% increase on the prior year

Proposed firm placing and placing and open offer announced today to raise c.£75 million (before expenses) to take advantage of the growing number of opportunities available to accelerate the Group's development in the medium and long-term

David Allvey, Chairman, commented:

"Costain has delivered another strong performance in 2013, with a forward order book up 25% to £3.0 billion, and the Board is recommending an increase in the final dividend for the seventh successive year.

"The Group has been transformed, and is now one of the UK's leading Tier One engineering solutions providers. Costain is established in a developing market of a limited number of providers who can deliver the innovative integrated consulting, project delivery and operations and maintenance services increasingly demanded by major customers.

"The proposed capital raising announced today alongside these good results provides us with the opportunity to accelerate our growth in the medium and long-term in rapidly evolving markets in which it is expected that over £400 billion will be spent in the next 10 years."

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