Costain narrows FY pre-tax losses

Construction company Costain said on Wednesday that it had narrowed pre-tax losses in 2021 as long-time problem jobs were purged from its books and the firm's contract bidding and delivery processes were overhauled.

Costain reported a pre-tax loss of £13.3m, a marked improvement when compared to the prior year's loss of £96.1m, driven by a 10.1% uptick in reported group revenues to £1.13bn. Operating margins of -0.8% were also improved versus the prior years -9.4%.

Basic losses per share were 65.5% improved at 2.1p.

The company highlighted that its disastrous Peterborough & Huntingdon gas station project had seen a final settlement with National Grid of £43.4m, which dragged reported figures down as a result.

Costain also noted that its order book stood at £3.4bn at the end of 2021, down from £4.3bn at the sane tune last year, reflecting its clients' five-year investment programmes, "greater discipline in contract selection" and shorter lead times of consulting and digital work.

Separately, Costain revealed that Paul Golby had indicated his intention to step down as chairman of the board within the next 12 months. The firm will shortly begin a search for his successor.

As of 0930 GMT, Costain shares were up 4.70% at 37.69p.