Costain’s finances are in steady shape, with £140m cash in the bank and no significant debt. Despite reporting a 3.5% fall in annual revenue to £986.3m for 2011 (2010: £1,022.5m), profitability improved.
While there was a 14.3% fall in pre-tax profits to £23.9m (2010: £27.9m), adjusted group operating profit was up 38% to £24.1m (2010: £17.4m).
The order book grew from £2.4bn to £2.5bn during the year.
Chief executive Andrew Wyllie said: “Costain has delivered another strong performance. The implementation of our 'Choosing Costain' strategy continues to transform the group, as we develop or acquire the skills and capabilities to reinforce our position as one of the UK's leading Tier One engineering solutions providers.
“Looking ahead, whilst mindful of economic conditions, we see significant opportunity for the continued successful implementation of our strategy which, in turn, will lead to the delivery of the board's ambition of doubling profit over the medium term.”
Costain’s performance was boosted by the acquisitions during the year of ClerkMaxwell and Promanex. Chairman David Allvey suggested that further acquisitions could be expected. “Our strong cash position, robust balance sheet and increased banking and bonding facilities provide us with the resources to grow the business by acquisition as well as organically,” he said.
“The ongoing drive, both organically and by acquisition, to broaden our services across engineering consultancy, construction, and operations and maintenance will remain a key priority in 2012.”
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