Costain Regulatory News (COST)

28 Apr 2005 12:35

Costain Group PLC28 April 2005 Costain Group PLC ("Costain" or the "Company") ANNUAL GENERAL MEETING 28 April 2005 At the Company's Annual General Meeting held today, the Chairman, DavidJefferies made the following comments: "When we announced our results for the year ended 31 December 2004, we reportedthat, in addition to an outstanding result for the year, we had also made astrong start to 2005 as a result of which our forward order book had moved from£1.1 billion at the end of 2004 to £1.5 billion today. "This achievement was in no small part due to our success in winning a number ofmajor contracts in the water sector, including work for Thames Water, YorkshireWater and Welsh Water in respect of their Asset Management Programmerequirements over the next five to ten years. "Since the year-end we have announced further success in the water arena with acontract for the major part of Southern Water's £1.5 billion five-year capitalinvestment programme. I am also pleased to tell you that we are very close tofinalising terms with United Utilities in respect of their five-year waterframework contract. "These contract wins, which together give Costain in excess of 20% of the UK'sAMP4 expenditure programme over the next five years, are of great significanceto Costain in that they give the Group sustainable earnings amounting to 50% ofits forward order book for the next five years. To have an earnings stream ofthis quality and duration is an extremely strong platform from which to build onexisting and new activity." "We also enjoyed success elsewhere across the Group. In particular, I wouldhighlight our joint venture with China Harbour which is giving Costain access asignificant proportion of the global ports and harbours market where there isconsiderable investment projected by the major port operators. This has alreadyborne fruit with our first contract award, at the end of last year, for theCosta Azul Gas project in Mexico, valued at US$170 million. There is anopportunity to build on this success and we are awaiting the result of a numberof bids submitted in the latter part of 2004. "Another significant achievement was the return to profitability in our Buildingdivision on the back of a near 60% increase in turnover during the year. Afurther sign of the division's return to health is that, with in excess of £230million of work under negotiation as preferred contractor, we have alreadysecured over 60% of the 2005 forward order book. "I am very pleased to report that this week the Company received the prestigious'Major Contractor of the Year' award at the Building Magazine Awards. Thejudges said: 'Costain has made such magnificent bounds forward that the judgesfelt compelled to give it this award'. "It is through a constant focus on our plan for growth that we have rebuilt andenhanced Costain's reputation both with existing and new clients. I amdelighted to report that we are seeing a high level of repeat business whichconfirms the high regard in which the Group is now held. "What has been achieved over the last four years is the result of thededication, hard work and enthusiasm of everyone at Costain and I thank them allon your behalf. Stuart Doughty, as Chief Executive, has been responsible forleading the Group through its recovery and we have been extremely lucky to havehad him at the helm. I am sure that everyone was delighted to hear of Stuart'sappointment as a Companion of the Order of St Michael and St George (CMG) in theNew Year Honours in recognition of his services to international trade andinvestment. "Under Stuart's leadership, a platform has been established from which theCompany can now move ahead into the next phase of its development. To leadCostain into that new phase, we were delighted to announce this week that AndrewWyllie, currently Managing Director of Taylor Woodrow Construction Limited, willtake over as Chief Executive later this year. We have worked in joint venturewith Taylor Woodrow over a number of years and know Andrew well. We aredelighted he has agreed to join us. He shares our values and vision for thefuture. "I would like to place on the record our debt and gratitude to Stuart for thegreat contribution he has made over the last four years and the role he hasplayed in ensuring that Costain has a secure future. "Costain can be proud of its achievements over the last few years. With arestored pride, a strong brand and highly skilled teams led by outstandingmanagement, we are looking forward to the future with confidence." ENDS Enquiries: Costain Group PLC Tel: 01628 842 444 Stuart Doughty, Chief Executive Charles McCole, Finance Director Graham Read, Public Relations College Hill Tel: 020 7457 2020 Mark Garraway mark.garraway@collegehill.com Matthew Gregorowski matthew.gregorowski@collegehill.com This information is provided by RNS The company news service from the London Stock Exchange