Costain increases its 2016 full year dividend by 15%

DividendMax Ltd.

Costain increases its 2016 full year dividend by 15%


Another strong performance

o Revenue, including share of joint ventures & associates, increased to £1.7 billion (2015: £1.3 billion)

o Underlying operating profit up 24% to £41.1 million (2015: £33.2 million)

o Net cash position of £140.2 million (2015: £108.2 million) reflecting positive timing of receipts at the period end.

Customer focused strategy delivering high quality order book

o Forward order book maintained at record level of £3.9 billion (2015: £3.9 billion)

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

Accelerating growth both organically and by acquisition

o Successful acquisition, further enhancing technology capability, of SSL for £17.0 million, now fully integrated and performing well

o Nature of service offering changing rapidly, with total headcount of over 4,100 of which over 1,200 now in technology, advisory and design service roles.

Positive outlook

o Over £1.2 billion of revenue secured for 2017, (as at 31 December 2015: over £1.1 billion secured for 2016) with £2.7 billion of revenue secured for 2018 and beyond

o Recommended final dividend of 8.4 pence per share (2015: 7.25 pence), increasing the total dividend for the year by 15% to 12.7 pence per share (2015: 11.0 pence).

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