Costain books solid earnings after implementing new strategy

2nd Mar 2016 15:37

(ShareCast News) - Costain Group's concentration on high value clients may have shown its worth on Wednesday, as the company recorded some impressive improvements in its revenue and earnings.The London-listed engineering solutions provider saw revenue increase 18.2% to £1.3bn during the year, with underlying operating profit improving 16% to £33.2m.Reported profit before tax was up 15% to £26m. Adjusted basic earnings per share declined, however, by 9.7% to 25.1p. Reported earnings per share were down 1.8% to 21.8p."We have again delivered a strong performance with growth in both revenue and profit. Our order book has reached a new record level of £3.9bn, providing good forward visibility," said Costain chairman David Allvey.Allvey put the company's success down to its 'Engineering Tomorrow' strategy, through which it was aiming for focused organic growth and targeted acquisition.He said Costain's position as a tier one supplier was further reinforced during the year, by providing a broad range of integrated services to a number of major customers."This unique market position is allowing Costain to accelerate its growth, and our confidence is reflected in the recommendation to increase the total dividend for the year by 16%."At 1530 GMT, shares in Costain were up 3.77% to 371.5p.