Choosiness pays off for Costain

CONSTRUCTION group Costain lifted pre-tax profits 34% to £8.7m last year and said it was making good progress on its strategy of beefing up its asset management side and being more choosy over contracts.

The order book stands at £700m and chief executive Stuart Doughty soon expects to announce a £170m refurbishment contract for St Pancras station. Net cash increased from £43m to £68m. But there is no dividend and no prospect of one in the near future, Doughty said.

Doughty was brought in last year to revive the business, which almost collapsed in the late 1990s after taking on unprofitable contracts. Charles McCole, formerly finance director at Sodexho UK, has been hired as finance director.