Costain operating profit jumps 34%, interim dividend lifted 10%
Civil engineer Costain reported a 34% rise in underlying operating profit for the first half on Wednesday as revenue grew and it bumped up its interim dividend by 10%.
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In the six months to the end of June, underlying operating profit increased to £21.2m from £15.8m in the first half of 2016 as revenue rose to £874.5m from £791.4m. The group attributed the jump in operating profit profit to a continued strong performance in the infrastructure division and a significant improvement in the natural resources division, where there has been no additional impact from the legacy waste PFI contract compared to last year.
The company had a net cash balance of £87.5m versus £69.2m the year before and lifted its interim dividend to 4.75p per share from 4.3p. Meanwhile, the order book stood at £3.7bn - 90% of which continues to be repeat business - versus £3.9bn in the same period a year ago.
Chief executive Andrew Wyllie said: "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.
"Costain is on course to deliver results for the year in line with the board's expectations."
At 0950 BST, the shares were up 2% to 449.99p.