Costain has improved its approach to contract selection and risk management processes, after it suffered a £96.1m loss for the year ended 31 December 2020
Costain 2020 results reveal the company were struck by significant charges in relation to the Peterborough & Huntingdon (P&H) and A465 road contracts.
In a bid to achieve operational improvements, Costain has created a new leadership team, de-layered the organisational structure and improved contract selection and risk management processes.
In Costain’s 2020 results, the company posted an order book of £4.2bn – £2.3bn of new contract awards and extensions, £1.1bn of new contract awards and extensions and £1.2bn of preferred bidder.
‘A good position to capitalise on opportunities’
Alex Vaughan, chief executive officer at Costain, said: “Last year was a challenging year but I am proud of how well everyone at Costain responded and the resilience shown across our business which enabled us to continue to operate effectively with strict Covid-19 safety measures in place.
“We are pleased to report an adjusted operating profit of £18m, despite the financial impact from Covid-19. The significant charges reported at the half-year relating to two contracts are clearly disappointing, and importantly we have taken robust steps to prevent such issues from reoccurring.
“Last year, we continued to be successful in winning new contracts and preferred bidder positions worth over £2.3bn with an increasing proportion of this work incorporating our broader service offering in line with our strategy.
“The UK Government has provided a clear strategic framework for UK infrastructure investment, underpinned by long-term underwritten investment programmes to support the UK Government’s drive to level-up economic growth and to meet decarbonisation commitments.
“I am confident that Costain is in a good position to capitalise on the opportunities in front of us and to grow our profits in 2021.”
