Costain Regulatory News (COST)

4 Apr 2005 09:00

Costain Group PLC04 April 2005 Costain Group PLC("Costain" or the "Company") Award of AMP4 contract from Southern Water Costain is today pleased to announce that it has been awarded a major part ofSouthern Water's £1.5 billion five-year quality and environmental capitalinvestment programme, in a consortium with United Utilities and MontgomeryWatson Harza ("MWH"). The contract, which begins immediately and lasts for five years, is worthapproximately £750 million to the consortium, of which Costain has a 40 per centshare. The other partners, United Utilities and MWH have shares of 40 per centand 20 per cent respectively. This gives Costain sustainable earnings and margin levels for five years withthe possibility of being renewed to ten and, in this joint venture gives Costainthe opportunity to totally manage the whole programme within the regulatoryenvironment. With this major contract award, and the recently announced preferred bidderstatus on United Utilities' five-year water framework contract, in joint venturewith Galliford Try, Costain has secured in excess of 20% of the UKs £16 billionAMP4 expenditure programme over the next five years. Commenting on the contracts, Stuart Doughty, Chief Executive, said: "This is an outstanding achievement by Costain, and has given the Companyguaranteed earnings amounting to 50% of its forward order book for the next fiveyears, renewable to ten. To have an earnings stream of this quality andduration is an extremely strong platform from which to build on existing and newactivity." 4 April 2005 Enquiries: Costain Group PLC Tel: 01628 842 444 Stuart Doughty, Chief ExecutiveCharles McCole, Finance DirectorGraham Read, Public Relations College Hill Tel: 020 7457 2020 Mark GarrawayMatthew Gregorowski This information is provided by RNS The company news service from the London Stock Exchange