Costain doubles dividend as FY profit comes in at top end of expectations
Construction engineering firm Costain surged on Tuesday as it reported full-year profit at the upper end of expectations, doubled its dividend and hailed record growth in its forward work position.
In the year to the end of December 2024, adjusted pre-tax profit rose 9.7% to £48.5m, while adjusted operating profit was up 7.5% to £43.1m, at the top end of expectations.
Revenue fell 6.1% to £1.25bn due to the timing of contract starts and completions in the transportation segment, with growth in all natural resources sectors.
Costain pointed to a record increase of £1.5bn in its forward work position to £5.4bn, more than four times FY 24 revenue.
The company doubled its full-year dividend to 2.4p a share.
Chief executive Alex Vaughan said: "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 increasing 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."
At 0930 GMT, the shares were up 8.7% at 113p.