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Costain focus on blue chip customers helps boost trading

Costain’s focus on targeting blue chip customers is continuing to see the firm perform in line with management expectations.

In a pre-close trading update ahead of its half year results published on 26 August bosses said Costain had won a number of significant new contracts since the beginning of the year.

Big wins so far in 2009 include the £397 million contract for the Greater Manchester Waste Disposal Authority, a major 10-year contract with Severn Trent worth an estimated £400 million, commencing with the next Asset Management Period, AMP5, which begins in 2010, and in joint venture a further five-year Managing Agent Contractor maintenance contract worth £200 million for the Highways Agency.

The group has also this week reached financial close on the Northbrook school PFI project within the Lewisham Building Schools for the Future programme.

Costain’s forward order book stands at a record £2.4 billion, a 20 per cent increase compared to the level at 30 June 2008, and includes over £900 million of work secured for 2009.

The firm has preferred bidder positions of over £800 million, and the current level of tendering activity remains high.

Costain has maintained its strong net cash position at significantly in excess of £100 million and has no significant borrowings.