Winner: Alex Vaughan, Costain

The past 12 months have been a period of success for Alex Vaughan – the chief executive of Costain. He has cleared two big problem jobs off the books, returned the firm to profit for the half year and is committed to operating a secure business by getting margins to 5% to 6%. On top of all this, Vaughan has recognised the importance of the environmental, social and corporate governance agenda.

Vaughan, who was appointed chief executive in May 2019, has overseen the firm, which had been solidly in the red for several years, bolster both its profits and turnover in the first half. Pre-tax profit was up 23% to £11.2m on turnover up 20% to £666m. He has also helped return the contractor to a solid footing – drawing a line under two problem contracts in Wales and Cambridgeshire in the past 12 months.

Commenting on his firm’s solid trading performance, Vaughan has said: “We have chosen to focus on those markets where strategic investment has to be made and is not discretionary, and that gives me confidence [about the future]. We are seeing investment continuing to flow and in the amount of work we are bidding. These [jobs] are critical needs for the UK to grow and prosper. I don’t think there will be a recession in infrastructure, but London developers and housebuilders could be affected.” The firm’s main markets are water, energy and transport, such as road and rail, with business from all three up in the first half. The firm has also increased its focus on defence.

Given his confidence in the direction of travel for the business, it is unsurprising Vaughan has remained committed to his five-year plan secure its financial position. This plan aims to have the company achieving profit margins of between 6% and 7% in the near future.

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