Costain Group has posted a jump in reported operating profit to £13.9m in its first half, up from £7.6m in H1 last year.

The construction engineering firm said it was progressing with strategic priorities in its chosen growth markets as the group performed “strongly” in the six months to 30 June.

Costain’s revenue dipped slightly to £639.3m, from £664.4m in H1 last year, which was driven by an expected small reduction in transportation, offset by growth in natural resources.

The group said it remains on course to meet its margin targets of 3.5% and 4.5% in the 2024 and 2025 financial years, respectively.

Costain CEO, Alex Vaughan, commented: “As a result of our strong performance and valued long-term relationships with our customers, we have increased our forward work position to a very healthy £4.3bn at the half year, with contract wins across all our sectors.

“Our focus on industry-leading solutions, predictable performance and long-term established customer relations has seen us win further significant Water contracts post period end, and we expect further wins for the Group in the second half of the year.

“The quality and customer balance of our forward work position across our two divisions, together with strong highly visible market investment, gives us good visibility on future revenue and margin.”

Costain announced an interim dividend payment of 0.4p, the same level as H1 2023, and having cited a strong balance sheet also confirmed the group’s plans for a planned share buyback.

Vaughan added: “As a result of our confidence in our long-term prospects, and our strong cash position, we have today announced a £10m share buyback which will commence with immediate effect.

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