Business
Trading in line with strong cash performance
Trading in line with strong cash performance.
About this update from Costain Group Plc
[{"type":"text","content":"\n \n \n \n \n \n \n \n \n Costain Group PLC\n \n \n 20 July 2022\n \n \n \n \n \n \n \n \n \n Trading in line with expectations with strong cash performance\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n Costain announces a trading update for the six months ended 30 June 2022, ahead of its interim results scheduled for 24 August 2022.\n \n \n \n \n \n \n Operating performance: strong delivery and inflation resilience\n \n \n \n \n \n \n The Group has delivered a good performance in the first half, with revenue ahead of market expectations1, reflecting the inflation recovery mechanisms built into contracts as we passed through increased costs with higher prices, together with increased volumes delivering revenue growth in Transportation and Natural Resources. We expect revenue for the full year to be ahead of market expectations.\n \n \n \n \n \n Adjusted operating profit for the first half of 2022 is in line with management's expectations, with absolute profitability increasing year-on-year. We expect first half 2022 adjusted operating margin to be flat year-on-year, reflecting the continuing progress in the business offsetting inflation impacts. Supply chain pressures have been well managed ensuring a strong and robust operational performance across our contracts.\n \n \n \n \n \n Our expectations for full year 2022 reported and adjusted operating profit are unchanged and we continue to expect good growth year-on-year. \n \n \n \n \n \n \n Cash performance: ahead of expectations\n \n \n \n \n \n \n Cash performance in the first half has been strong, driven by efficient working capital management and operating performance. Net cash at 30 June 2022 is around £95m, ahead of market expectations and we expect to deliver further positive net cash during the second half of the year.\n \n \n \n \n \n \n Market performance: delivering against strategy\n \n \n \n \n \n \n \n \n The Group's four chosen markets of Transport, Water, Energy and Defence continue to offer growth opportunities.\n \n \n \n \n \n \n \n \n Transportation\n \n continues to operate well across our HS2, other Rail and Highway activities with a high volume of tender activity for further road and rail programmes, and aviation frameworks. In the period we have secured contra...