In the year to 31st December 2024 Costain made a pre-tax profit of £36.5m, up 18% on 2023’s £30.9m.
Operating profit increased to £31.1m (2023: £26.8m).
Revenue was down 6% at £1,251m (2023: £1,332m).
There was growth in water (up 2.5%) and energy work (1.3%) but reductions in road and rail work. Road volumes were down 23% due to the completion and delays of certain projects, while rail was down 9% due to the completion of main works at Gatwick station.
As previously reported, there was a record increase in Costain’s forward work position of £1.5bn to £5.4bn. This includes preferred bidder positions and expected work from frameworks in addition to actual booked orders.
Chief executive Alex Vaughan said: “I am pleased that we had another good year with adjusted operating profit (£43.1m) at the upper end of expectations. We delivered a further increase in operating profit and earnings per share, building on our strong financial performance track record of the past three years. Adjusted operating margin increased significantly, exceeding our target for FY 24, and we remain on track to deliver our margin target for FY 25.
“The record growth in forward work position is expected to deliver further progress in FY 25 and FY 26, followed by a step change in FY 27 performance. The quality, balance and better risk profile of our forward work position of £5.4bn across our two divisions, together with continued investment in our chosen markets, gives us growing visibility on future revenue and margin. We continue to deliver improvements and invest in the business, and are increasingly confident in the group’s growth prospects, with our strong cash position and cash generation enabling the group to enhance returns to shareholders.”
Got a story? Email news@theconstructionindex.co.uk
#Costain #profits