Costain trading in line with expectations

(Sharecast News) - Construction group Costain said on Thursday that trading from 1 January to date has been in line with board expectations, with further contract wins in growth markets. In an update ahead of its annual meeting, the company said it remains on track to meet its 4.5% adjusted operating margin run rate target in 2025 and still expects its full-year net cash position to be in line with current market expectations of around £180m.

Costain said it retains "a high-quality forward work position that aligns with its strategic plans".

It said the successful execution of its strategy delivered a record increase in the forward work position of £1.5bn to £5.4bn in 2024.

"In 2025, the group remains busy bidding further new work across all sectors and broadening its customer mix," it said, adding that wins in the period include new contracts in Nuclear Energy.

"While mindful of the macro-economic backdrop, through its focus on critical national needs Costain continues to improve the quality of its contract portfolio and deliver on its targets, and the board remains confident in the group's strategy and growth prospects," Costain said.