Costain\u2019s focus on key sectors has paid off, with profit doubling in the first six months of 2024.<\/p>\n
The firm\u2019s pre-tax profit for the six months to 30 June 2024 came in at \u00a317m, exactly double the \u00a38.5m compared with the same half-year period last year.<\/p>\n
Chief executive Alex Vaughan put the success down to the decision to focus on particular industries, specifically the water, defence and nuclear transition sectors.<\/p>\n
Vaughan also predicted that an increase in private sector work will drive more growth in the coming years.<\/p>\n
\u201cWe\u2019re feeling very positive about the marketplace because of where we\u2019ve positioned ourselves,\u201d Vaughan told Construction News<\/em>. \u201cWe\u2019re successfully broadening our customer base, adding new customers, as well as developing positions with those that we\u2019ve got and growing our consultancy and construction services. We\u2019ve got some real positive momentum.<\/p>\n \u201cThe company is in the best shape it\u2019s been in for decades \u2013 it\u2019s just got a driving force.\u201d<\/p>\n Costain<\/a>\u2019s turnover in the same period dipped to \u00a3639.3m from \u00a3664.4m, which Vaughan put down to an expected slowdown in work within the transportation sector, as the firm completed key contracts in both rail and road.<\/p>\n Though he does not expect an immediate uptick in revenue from transportation contracts, Vaughan said that should come \u201cin the medium term\u201d.<\/p>\n \u201cWe\u2019re doing a lot of design work for the next schemes at the moment, so that will start to come through towards the end of 2025 into 2026,\u201d he added.<\/p>\n Cash was up at \u00a3166m, from \u00a3132.1m.<\/p>\n Despite the spending cuts planned by the new Labour government, Vaughan expects Costain\u2019s involvement in the private sector to carry it through, especially considering government plans for a public-private funding scheme.<\/p>\n \u201cWe\u2019re obviously alive to the spending challenges that the government has got,\u201d he said.<\/p>\n \u201cBut the water investment that we\u2019re getting is all private sector money, and the BP contracts that we\u2019re winning are private sector money. So there\u2019s going to be significant growth in private sector money,\u201d he said.<\/p>\n He pointed to work within the aviation sector, specifically with Heathrow and Manchester Airports Group.<\/p>\n \u201cThere\u2019s huge investments in our marketplace, and plenty for us to go at,\u201d he added.<\/p>\n Vaughan was also positive about the government\u2019s plans to streamline the planning system, following concerns he voiced in an interview with CN <\/em>earlier this year<\/a>.<\/p>\n \u201cIt\u2019s a great start \u2013 the government has very clearly identified planning as a constraint for investment and efficiency,\u201d he said. The Labour government has also pushed for a 10-year plan to increase confidence within the infrastructure sector \u2013 which Vaughan also called for in the interview earlier this year.<\/p>\n HS2 work remains a central part of Costain\u2019s focus, and along with jobs for National Highways, formed the majority of its projects during the first half of 2024. In a joint venture (JV) with Skanska and Strabag, it is delivering the London tunnels section of HS2.<\/p>\n