Backs FY outlook (Il Sole 24 Ore Radiocor) - London, 21 Aug - The UK construction and engineering company Costain said its first half revenue fell 3.8% to 639.3 million pounds reflecting growth in Natural Resources, and, as expected, a small reduction in Transportation.

Adjusted operating profit rose 8.7% to 16.7 million pounds for a margin of 2.5%, up from 2.3%, with an increased margin in Transportation and higher volumes and margin in Natural Resources. Reported operating profit was 13.9 million pounds, up 82.9%.

Adjusted earnings per share increased 27.3% to 5.6 pence driven by interest earned on stronger net cash position and adjusted operating profit increase. Reported EPS was 5.0 pence up from 1.9 pence the prior year.

The forward work position, or the total of order book and preferred bidder book which includes revenue from contracts which are partially or fully unsatisfied and probable revenue from Water and other frameworks included at allocated volume, rose to 4.3 billion pounds from 4.0 billion, was over than three times full year revenue, with contract wins across all sectors and significant growth in Water. The group won at least a further 500 million pounds of Water contracts after the half year.

Costain declared an interim dividend payment of 0.4 pence, unchanged from last year and announced a 10 million on-market share buyback.

It backed its full year guidance and said that it was on track to deliver an adjusted operating margin run-rate of 3.5% during the course of 2024 and 4.5% in 2025, in line with our ambition to deliver margins in excess of 5.0%.

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(RADIOCOR) 21-08-24 08:24:19 (0145) 5 NNNN