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Costain books £700m of 2011 revenue

Costain has secured £700 million of its forecast revenue for its 2011 financial year, the firm revealed today.

In a positive update to the stock exchange, Costain said its order book is currently £2.4 billion, after a number of contract wins have offset work recently completed.

Trading is also currently in line with management’s expectations, while it has transferred six PFI investments into its pension fund to reduce its pension deficit by £22m.

This transaction will see Costain book a profit of £7.5m on the transfer, while reducing the pension deficit, which can often be a concern for investors in the firm’s shares. The transfer will also mean the firm pays less into its pension fund in future years.

The firm has also seen its cash balance maintained at over £100 million.

The statement said: “Following the transaction to significantly reduce the pension deficit, the Group’s profit before tax for the year ended 31 December 2010 will benefit from an additional £7.5 million, as indicated above. 

“Whilst challenging market conditions are set to continue for the foreseeable future, the Board expects to report continued progress at the year-end in line with its expectations.”