Costain sees nuclear future

Published 11th Mar 2010

The boom in school and hospital building is over and the future of civil engineering is nuclear, according to Costain, the engineering and construction group.

Andrew Wyllie, chief executive, said that Costain had made a decision to commit to blue-chip clients, whether they be in the public, private or regulated sectors, as they generated 80 per cent of its business.

There would be a significant reduction in the group’s “community” division, he said. “It is not to say there will be zero spending in health and education — but there are better opportunities elsewhere.”

In Mr Wyllie’s view, the nuclear power industry was one of those opportunities: “We have a major nuclear decommissioning contract at Sella-field, which is employing 300 specialists. But the country needs to build 50 gigawatts of electricity plant over the next few years and a lot of that will come from nuclear.”

Costain reported annual revenues for 2009 in excess of £1 billion, £66 million more than the £996 million achieved a year earlier.

Operating profit for the year was 13 per cent better at £20.8 million, but a fall-off in finance income meant that pre-tax earnings were £5 million lower at £18.1 million.

More importantly, £900 million of revenues for 2010 have already been secured and about two thirds of Costain’s £2.6 billion order book goes through to 2011. The total dividend payout is 10 per cent higher for the year at 0.825p per share.

Source: ' Times '

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