Costain Group increases its 2015 interim dividend by 15%

DividendMax Ltd.

Costain Group increases its 2015 interim dividend by 15%


Another strong trading performance

o Revenue increased to £621.1 million (2014: £529.1 million)

o Underlying operating profit up 17% to £13.1 million (2014: £11.2 million)

o Net cash balance of £126.8 million (2014: £133.8 million)

Unique customer focused strategy generating record order book

o Record forward order book up 16% to £3.7 billion (2014: £3.2 billion)

o Over 90% of order book comprises repeat orders and over 90% lower risk target cost, cost reimbursable forms of contract

Leveraging opportunity to accelerate growth both organically and by acquisition

o Post period-end acquisition of Rhead Group, further broadening range of capabilities

o Banking and bonding facilities increased to £525 million and extended to 2020

Positive outlook for FY2015 and confidence in the future

o Over £1.2 billion of revenue secured for FY 2015 by 30 June, (2014: over £950 million secured for FY 2014)

Increase of 15% in interim dividend to 3.75 pence per share (2014: 3.25 pence)

Andrew Wyllie CBE, Chief Executive, commented:

"We have delivered another strong performance in the first half of the year. In addition to growth in revenue and profit, our order book now stands at a record £3.7 billion.

"Costain has an established reputation for delivering innovative integrated services that enables the Group to win large, long-term contracts addressing the UK's National needs in energy, water and transportation.

"Costain is accelerating its growth and following the 17% increase in underlying operating profit in the first half of the year is on course to deliver a result for the year at the upper-end of the Board's expectations. Our confidence for the future is reflected in the 15% increase in dividend."

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