Costain has posted annual revenue of 拢1.06bn for the year ending 31 December 2009 (2008: 拢996m), the first time the contractor has passed the 拢1bn-turnover mark for 16 years.
However, profit before tax was down 拢5m at 拢18.1m, chiefly due to high interest charges on its pension scheme.
Costain has a record year-end forward order book of 拢2.6bn, an increase of 30% on the 拢2bn reported a year ago. Some 84% of orders are repeat customers, and around 拢900m represents secured work for 2010.
Additionally, the contractor is currently at preferred bidder on over 拢600m worth of contracts.
Costain is in a strong net cash position, with 拢120.5m (2008: 拢146.6m), and its average month-end cash balance throughout the year was 拢125.3m (2008: 拢117.4m).
The deficit in the firm鈥檚 UK pension scheme, in accordance with IAS 19 was 拢75.4m at 31 December 2009, net of deferred tax. This is more than double the 拢36.1m of a year before.
Operations review
Environment (water, waste and marine). The division's order book increased by 66% to 拢1.3bn and Costain expects 鈥渁 high level of investment to continue in these sectors over the coming years鈥�.
Infrastructure (highways, rail and airports). Highways maintenance activity accounts for the majority of Costain鈥檚 maintenance related-activities which represent 13% of total orders.
Energy & Process (hydrocarbons and chemicals, nuclear processing and power). Costain secured further work on the major EVAP D nuclear decommissioning project at Sellafield, and sees potential for further growth in this sector.
Community (health, education and retail). This division was intentionally scaled down as Costain continues 鈥渢o allocate resources to more attractive opportunities鈥�. The firm disposed of two PFI equity stakes in the year.
The contractor is pushing its 鈥楥hoosing Costain鈥� strategy, 鈥渁 commitment to delivering a full-service offering, from front-end engineering consultancy and design, through construction to maintenance鈥�.
It will focus on the infrastructure, environment, plus energy and process markets where Costain will look for repeat orders from blue-chip customers who require 'life cycle' services for their assets.
鈥淲e can be pleased with the strong business performance delivered in 2009, particularly in view of the difficult macroeconomic conditions we faced,鈥� said Andrew Wyllie, chief executive.
鈥淟ooking ahead, our continued success will be built on our leading positions in markets that are underpinned by strategic capital expenditure, regulatory commitment and essential maintenance requirements.鈥�
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