NW focus pays off for Costain
ENGINEERING giant Costain said today its focus on the North West was paying off as it revealed a surge in orders and operating profits.
The company, which has 600 staff in the region, has won a clutch of major contracts here in recent months.
They include the Greater Manchester Waste Disposal Authority contract, which is worth £397m and is creating new jobs in the region.
Finance director Tony Bickerstaff said the company, which also secured major contracts with Warrington-based United Utilities and at Sellafield, had boosted its order book by £1bn in the last six months.
He said: “The North West is a very important location for us, and I think the work we have won demonstrates that.
“The waste contract is really key, and we’ve already got 100 or so people on the project It’s a great opportunity, and the largest scheme of its kind in Europe.”
The extension of work with United Utilities is worth £170m, while the Evaporator D nuclear contract at Sellafield is worth £297m.
In the six months to June 30 Costain’s revenue rose from £467.5m to £508.2m. Profit from operations rose from £7.5m to £8.3m.
Bottom line profits fell from £10.1m to £6.9m, which Mr Bickerstaff said was because Costain has £100m of cash in the bank and had earned less interest on this money, due to the fall in interest rates from 5% to 0.5%.
