Tighter risk controls have helped Costain return to profit after posting a £96.1m loss in 2020.
In interim results for the half-year ended 30 June 2021 released this morning, the contractor reported a pretax profit of £9.1m from a revenue of £556.8m with the improvement expected to continue for the rest of the year. Its results show that it has nearly doubled its cash balance year-on-year.
Alex Vaughan, Costain’s chief executive officer, said he was confident for the year ahead and that the firm would continue with its approach to selective tendering. Last year’s loss was largely attributable to £94.7m of charges from two long-standing contracts in relation to the Peterborough & Huntingdon gas station job and the A465 Heads of the Valleys road scheme.
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