Costain hints at dividend after solid first half

23rd Aug 2023 07:28

(Sharecast News) - UK construction and engineering company Costain said it is considering bringing back its dividend payments after a strong first-half performance in which is strengthened its balance sheet and refinanced debt.

Revenues were flat year-on-year at £664m in the six months to 30 June, but adjusted operating profits were up 7.1% at £15m, helped by increased profitability in the Natural Resources division along with the benefits of its ongoing transformation programme to increase efficiencies and improve margins.

Costain, which provides infrastructure across the UK's energy, water, transportation and defence markets, said its net cash position improved to £132m, up from £96m the year before and £124m at the start of 2023. Meanwhile, pension deficit payments have been reduced.

The company said that an interim dividend in respect of the first-half period is now under consideration by the board and an announcement will be made shortly. Dividends, if paid, will be split into 1/3 as an interim payout and 2/3 as a final payout.

"In the period, we delivered important actions to strengthen our balance sheet, including finalising our actuarial pension review, and securing the refinancing of our banking and bond surety facilities; both of which increases our ability to generate further cash for the group," said chief executive Alex Vaughn.