Costain Group PLC - AGM trading update
("Costain" or "the Group" or "the Company")
AGM trading update
Ahead of today's Annual General Meeting (AGM), Costain, the smart infrastructure solutions company, announces an update on trading including the impact of Covid-19 on the Group's operations.
Operational and trading update
Although the ongoing implications and impact of Covid-19 remain uncertain, we are pleased to be back working on site across substantially all of our operations. As a priority we continue to monitor and implement all necessary measures to safeguard our people and our stakeholders who are working on contracts across the
Overall activity levels have increased since the beginning of the lockdown and have now stabilised. The activity levels vary across our sites as a result of the necessary Covid-19 safety measures implemented to protect our colleagues and our other stakeholders.
· The critical range of services to strategic highway, local authority clients and water utilities as well as our consultancy services across all our markets have continued to progress working to modified methods incorporating Covid-19 safety measures.
· Our on-site activities in
· The overall level of activity in Q2 has been broadly as anticipated at the commencement of the lockdown in March and where necessary we are working with clients to change resource levels and programmes to meet their revised requirements as a result of Covid-19.
As previously announced, we have taken a number of actions to mitigate the immediate financial impact on the Group in Q2 through a combination of cost reduction measures and deferral of PAYE and VAT payments.
Successful fundraising and capital structure
On 29 May, Costain completed a
The Group has a net cash balance of
The Group expects the order book to be approximately
· Formal notice to proceed by HS2 on
· One of six partners to Highways England's
· Partner on Anglian Water's
· A partner on Yorkshire Water's
· A consulting contract for
· Programme Management contract for
· Highways England Specialist Professional and Technical Services framework
On the A465 and
"We are pleased to be back on site across substantially all of our operations, with activity levels now stabilised. I am proud of how our business has transitioned to new ways of working safely and productively during this challenging period for all of our colleagues, clients, supply chain partners and communities.
"We are already seeing the benefit from our strengthened balance sheet with several new contract wins and framework awards. The impact of Covid-19 remains uncertain, however, Costain is well positioned to successfully navigate through the current environment and capitalise on the significant opportunities that the
Costain will announce its interim results for the six months ending
Tel: 01628 842 444
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Notes to editors
Costain helps to improve people's lives with integrated, leading edge, smart infrastructure solutions across the
For more information visit www.costain.com
This information is provided by RNS, the news service of the
Quick facts: Costain Group
Market Cap: £108.47 m
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