For thesix months to 30th June 2017, Costain generated total revenue of 拢874.5m, an increase of 11% on the previous year.
Underlying operating profit increased by 34% to 拢21.2m (2016: 拢15.8m).
Pre-tax profit was up 39% to 拢15.7m (2016: 拢11.3m).
The order book at 30th June 2017 stood at 拢3.7bn, down from 拢3.9bn a year before.
The Infrastructure division, which operates in the highways, rail and nuclear markets, delivered saw its revenue (including share of joint ventures and associations) increase to 拢694.1m (2016: 拢613.2m) but operating profit (before other items) dipped to 拢24.8m (2016: 拢27.4m).聽 The squeezed margin was attributed to 鈥渢he timing of returns across a range of contracts, together with the high level of bid costs in the period鈥�. Costain continues to target an underlying blended operating margin of between 4% and 5%.
Costain鈥檚 other division, Natural Resources, which operates in the water, power and oil & gas markets, put in an improved performance.聽 Revenue (including share of joint ventures and associations) was 拢177.7m (2016: 拢175.7m) and made a 拢200,000 operating profit (2016: 拢8.4m loss).
Chief executive Andrew Wyllie said: "We delivered another strong performance in the first half of the year with 34% growth in underlying operating profit and a 10% interim dividend increase.鈥�
In what could be interpreted as a jibe to those competitors who pursue contracts in janitorial services, refuse collection and catering, Mr Wyllie continued: "We are transforming rapidly to differentiate Costain as the UK's leading smart infrastructure solutions company. We are delivering technology-based solutions demanded by our clients who are spending billions of pounds, underpinned by legislation and regulation, to meet ever more complex challenges to enhance the nation's infrastructure.鈥�
Costain now has 1,300 of its employees 鈥� more than 30% of the total 鈥� working in consultancy and technology roles.
Mr Wyllie said that more than 90% of the company鈥檚 contracts 鈥渁re on a 'target cost, cost reimbursable' basis which, for complex investment programmes, provide clients with maximum flexibility and significantly lowers our risk profile鈥�.
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