Would anyone know why there has been such a large number of shares sold and no buying? Is there something we are not aware of?

Absolutely smashes concensus forecasts
of just under £22 million operating profit
which the brokers were looking for.

Dividend raised aswel......

COST

Smashes broker concensus figures apart.

http://www.investegate.co.uk/Article.aspx?id=201203070700318497Y

SP breaking out of the triangle and
moving up.............

BRIEF-Costain posts higher full year operating profit
07 Mar 2012 - 07:04

LONDON, March 7 (Reuters) - Costain Group PLC :

* Auto alert - Costain Group PLC final dividend 6.75 pence per share

* Full year adjusted group operating profit 24.1 million STG

* On course to achieve goal to double profits in the medium-term

Costain orders ahead

Engineering solution provider Costain announced a 38% increase in operating profit for the year to end-December, with an increased order book.

The group said it maintained strong cash balances and increased its final dividend.

There was an increase of 38% in adjusted group operating profit to £24.1m.

Year end order book increased to £2.5bn, in excess of 90% from repeat orders (2010: £2.4bn).

There was a £140m year-end net cash balance and no significant debt.

Banking and bonding facilities were increased to £465m and extended to September 2015.

Two successful acquisitions were completed in 2011, broadening the range of services provided by the Group.

Costain said support services activities now represent 25% of work secured for 2012.

The group recommended an 8% increase in dividend for the year: 5th successive year of increase.

Costain said it was on course to achieve the ambition to double profits in the medium-term.

David Allvey, Chairman, commented: "Costain delivered another strong performance in 2011, with operating profit up substantially and an increased order book.

"The Group has been successful in targeting those blue chip customers who are spending billions of pounds per annum on essential capital projects and ongoing maintenance of essential, nationally strategic assets. This provides a major opportunity to grow the business further.

"We are transforming Costain into a broad-based Tier-One engineering solutions provider, aligned with structural market changes. Winning projects such as the complex £400 million London Bridge redevelopment is testimony to that. Meanwhile, our strong cash position, robust balance sheet and increased banking and bonding facilities provide us with the resources to grow the business by acquisition as well as organically.

"Our confidence in Costain's future, and in achieving our ambition of doubling profit over the medium-term, is reflected in the Board's recommendation to increase the final dividend for the fifth successive year."

Massive Broker upgrade just out......

Costain Group FTSE SMALLCAP Industrial Buy 315 207 52.2% Investec


Target SP 315P upside 52.5%

WOW that is one hell of an upgrade.

GF - don't forget BBY reporting tomorrow.

Havent Skinny. Got it sorted if they are good. Already posted a bit over the road.

Costain Awarded GBP60m Oil & Pipelines Agency Contract

Costain, one of the UK's leading engineering solutions providers, announces that it has been awarded a three-year asset support contract for the operation and maintenance of the Government Pipeline and Storage System.* The contract is expected to have a value over three years of approximately GBP60m, and has the potential to extend for a further two years.

The Group was awarded the contract by the Oil and Pipelines Agency (OPA), which manages the Government Pipeline and Storage System and six Royal Navy oil fuel depots on behalf of the Ministry of Defence. Under the terms of the contract Costain will be responsible for asset management and capital project delivery in addition to operations and maintenance of the entire network.

As well as bringing to bear Costain's skills and capability in engineering, construction and project management, the operations and maintenance experience of Promanex, which the Group acquired in August 2011, was instrumental in securing the contract.

Andrew Wyllie, Chief Executive of Costain, commented:

"The award of this contract by a new customer demonstrates the value that Promanex has brought to Costain in providing the full life of asset services in high growth market sectors. It also marks an important stage in the ongoing transformation of the Group as we continue to broaden our service offering, both organically and by targeted acquisitions."

"Our strategy of focussing on major customers whose spending plans are driven by national need, regulatory commitments or essential maintenance requirements continues to deliver results. We look forward to working with the OPA to ensure the safe, cost effective and efficient operation and maintenance of this strategic national asset."

*As referenced in the full year results announcement of 7 March 2012

yes excelent new contract win skinny.

GF- re post 270

There was a £140m year-end net cash balance and no significant debt.

Is this correct? if so its more than the value of company

That is correct devon, been the same situation for the last few years (not sure how many without looking it up)
Surprising we haven't been take out by now.

There used to be a problem with a pension fund deficit. Has that been sorted yet?

TOK, they do keep making inroads into the deficit:

Costain Pension Scheme

23 February 2012

Costain, one of the UK’s leading engineering solutions providers, today announces further actions taken to manage the obligations in the legacy Costain Pension Scheme (the ‘CPS’).

The Board has agreed with the Trustee of the CPS to transfer the Group’s interest in a portfolio of two PFI investments into the CPS, at an agreed valuation of £20.3 million. This represents an effective discount rate of circa 7%. As a result of the transaction, the accounting profit realised on the transfer of the assets is £10.2 million in 2012.

Furthermore, as part of the package of measures being implemented, the Group has instigated a liability risk management exercise. The Group is in the process of issuing Enhanced Transfer Value and Pension Increase Exchange offers to the members of the CPS. These initiatives, which potentially include every member of the CPS, will offer each individual greater choice and flexibility regarding their pension entitlement, and will also reduce the overall pension liabilities and risk remaining within the scheme. The level of liability reduction will depend on the take-up of the offer by members and financial conditions at the point the entire exercise completes (expected to be May 2012). At this stage, it is estimated that the initiatives could reduce the scheme liabilities by approximately £50 million, and could incur a one-off accounting cost, estimated at £6 million, to be expensed in 2012.

Together, the above actions are estimated to reduce the pension deficit by approximately £16 million, with an associated potential reduction in annual deficit contributions, following the next triennial actuarial valuation of the CPS which is due as at 31 March 2013.


Notes:

1. The two PFI assets transferred into the CPS are:

Integrated Bradford Holdco Two Limited
Lewisham Schools For The Future Holdings 2 Limited

2. The gross asset value as at 30 June 2011 of the two PFI investments transferred was £7.5 million (31 December 2010: Nil) after the IAS 39 mark-to-market swap adjustment and £8.9 million (31 December 2010: £0.2 million) excluding this adjustment.

The profits attributable to the two PFI assets for the six months to 30 June 2011 were £0.2 million (for the twelve months to 31 December 2010: £0.1 million).

3. The IAS19 gross deficit in the CPS as at 30th June 2011 was £35.8 million.

What a move today! Now if this wasn't Costain we could be rocketing to new highs....oh heck what have I said :-/
.... well at least we can't go down until the morning :-))

Up again....




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Deltastream

I noted its sensitivity to small buys on 28th Feb.Mms were keeping it down. Not much furtehr after then.

Good move by Costain I believe:

New Technology Specialist Joins Costain

22 March 2012

Costain Energy & Process has appointed Dr Bryony Livesey as Manager, Research and Technology, to identify and develop new commercial opportunities for the Company based on the implementation of new technology.

Bryony, who is a Chartered Engineer with a First Class Honours degree from Manchester University and a PhD from Cambridge University, will initially focus on the Power, Nuclear Process and Hydrocarbons & Chemicals sectors.

She joins Costain from Doosan Babcock where she established their Global R&D Centre for clean energy, managing a team of over 100 technical multi-discipline staff. Under her leadership the number of patents held by the Company trebled in two years.

Bryony had previously worked for AEA Technology, leading technology and innovation in senior management roles both in the UK and internationally, including Europe, Japan, US and South Africa. She was President of a joint venture between AEA Technology and Sumitomo Corporation based in Japan. In this role, she led the development of joint UK-Japan projects across a wide range of industry sectors, working with R&D organisations and academic institutions from across UK, Europe and North America.

Charles Sweeney, Managing Director of Costain’s Energy & Process division said: “We are delighted that Bryony has joined Costain’s Front End Solutions team. This is a key appointment as we continue to enhance the strength and depth of technical skills and capability within Costain.”

This performance must help in the acquiring of major contracts in the future:

Costain Excels In Safety And Environment

27 March 2012

Costain’s *MAC 10 Project, M62, J9 to 11 Improvement Works has excelled in the latest results released by the Considerate Constructors Scheme (CCS).

The project was awarded a total score of 37 out of a possible 40.

With the CCS measuring a total of eight categories, the MAC 10 Project received the maximum score possible, an impressive 5 out of 5, for both the safety and the environment categories, showing that exceptional measures were taken in line with the scheme’s requirements.

The CCS monitor commented that: “Regular toolbox talks are carried out. Operatives are encouraged to make safety suggestions. The site has introduced safety innovations developed through lesson learned / operative suggestions” and that “Attention to detail regarding site safety is first class”.

The project was also awarded a score of 4.5 out 5 for each of the remaining six categories: considerate, appearance, a good neighbour, respectful, responsible and accountable. This score showed that a ‘high level beyond compliance’ was achieved.

In summary, the monitor remarked that: “The site team are running a compliant site under the Considerate Constructors Scheme in a professional manner. The site gives a good impression and the whole team fully embraces the scheme requirements”.

The MAC 10, £9.5million scheme combines three sets of improvements into one ‘rolled together’ scheme including the widening of the link roads from the M6 at junction 21A (Croft Interchange) onto the M62 eastbound carriageway at junction 10.

The Croft Interchange is one of the busiest junctions on the motorway in the North of England with the M62 at this point carrying 57,000 vehicles a day in each direction.

Gerard Ward, Site Manager at MAC 10 commented: “There is always a great sense of achievement to get a great score especially when you know the high standards expected from the CCS. The team’s response to delivering a much needed improvement scheme for the local community will be impressive and extremely welcomed by the local community. It is important that High Profile Highway Schemes are given some recognition with hopefully a modest Award to hang up alongside the Silver achieved last Year.”

Neal Symmons, Highways Agency Service Delivery Manager for this scheme stated: “Achieving a CCS score of 37 out of 40 is an excellent score and reflects the efforts of the entire project team. The linear nature of highway network projects mean our work areas are large when compared with other construction projects, this fact coupled also with our customers travelling through our works area means our constructions teams have to be extra vigilant and work very hard to achieve CCS scores of this level.”

*MAC 10 is an A-one+ Project, which is a Joint Venture Project with Colas and Halcrow.

Interim Management Statement.

Overview

Following on from its strong performance in 2011, the Group is continuing to perform well and trading is in line with the Board's expectations.

The Group is undergoing significant and ongoing transformation as a result of the successful implementation of its "Choosing Costain" strategy. That strategy is focussed on building the Group into one of the UK's top engineering solutions providers, delivering services for blue chip customers whose major spending plans are underpinned by strategic national priorities, regulatory commitments or essential maintenance requirements in chosen sectors.

A core component of this has been the broadening of the skills and capabilities across the full asset life cycle demanded by our customers. Consequently, the services we now offer to our customers, and the composition of our earnings, are being transformed as we continue to broaden the business through the implementation of our strategy. Currently 25% of our 2012 order book now comes from support services activities and this will continue to grow.

In this context, Costain in 2011 made two acquisitions both of which have been successfully integrated and are providing a broader range of opportunities for the Group. The enhanced capability provided by Promanex enabled the Group to win a £60m operations and maintenance contract from new customer the Oil & Pipelines Agency earlier this year.