Group says remedial actions are beginning to turn round fortunes of building arm

Costain has announced that its building division has made a steady improvement since suffering large losses in 2006.

Managing director Andrew Wyllie
Managing director Andrew Wyllie

The construction group said that results for the six months ending 30 June 2007 are in line with expectations.

Costain said since remedial actions had been put into place the building division had made some progress.

Costain suffered an overall pre-tax loss of £62m for the year ended 31 December 2006 for which the building division contributed a £25m loss. The losses were blamed on project delays and dispute as well as the closure of the international division.

The group said its forward order book was satisfactory and that is civil engineering division had a strong performance in the first half.

Interim results will be announced on Friday, 14 September 2007.