Construction group also reports record year-end order book

Costain has posted a turnover exceeding £1bn for the first time in 16 years in results for the year ending December 2009.

The group reported a turnover of £1.061bn, a 14% increase in profit from operations to £20.8m but a drop in pre-tax profit to £18.1m compared to £23.1m for the same period in 2008.

Costain reported a record year-end forward order book, up 30% at £2.6bn compared to £2bn in 2008 including around £900m of secured work for 2010. It added that preferred bidder positions at year-end were over £400m, and have increased to over £600m since.

The group recommended a final dividend of 0.55p, increasing total payout for the year by 10% to 0.825p.

David Allvey, chairman, said: "We are confident that our position in markets underpinned by strategic capital expenditure, regulatory commitment or essential maintenance requirements will continue to stand us in good stead.

"With a record year-end order book, a significant amount of work already secured for 2010, a net cash balance of over £120m and customers committed to long-term capital investment programmes, Costain is looking to the future with confidence.”