Focus on big spenders gives lift to Costain

The company said its order book reached a record 2.6bn in 2009 as its focus on big-spending major clients helped it weather recession.

Maidenhead-based Costain has piled up infrastructure deals from customers including a raft of utility firms, boosting orders by 30 per cent during last year.

Repeat customers such as the Highways Agency now account for more than 80 per cent of its workload, while it has already secured 900m in revenues for 2010.

Costain chairman David Allvey said: "We are confident that our position in markets underpinned by strategic capital expenditure, regulatory commitment or essential maintenance will continue to stand us in good stead."

Pre-tax profits for 2010 fell 21 per cent to 18.1m although this was due to lower interest payments on Costain's cash balances. At the operating level, the firm grew profits by 14 per cent and revenues pushed past the 1bn mark for the first time in 16 years to hit 1.06bn.

The firm also unveiled the next stage of its strategy – 'Choosing Costain' – under which it will act as a one-stop shop for the major clients who provide 'life support' services for the UK and spend money irrespective of the state of the economy.

The company believes infrastructure, waste and water and power will be the key growth sectors over the next decade.