You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Costain

0
Written by: YourMoney.com
29/08/2017
Ian Forrest, investment research analyst at The Share Centre, picks Costain as stock of the week.

The shares of British construction and civil engineering solutions provider, Costain, are up by over 30% compared to last year. In its latest results in August, the group reported a profit of £15.7m on the back of a 12% rise in revenue to £874.5m. Furthermore, income seekers should note that the firm’s interim dividend is being raised by 10% to 4.75 pence.

The group’s aim is to focus on winning contracts in the water, energy and transportation sectors. The group has been building on relationships with many blue-chip customers, which has led to 90% of revenue representing repeat business. Currently, it’s involved in high profile projects such as Crossrail and London Bridge Station, as well as with Thames Water, UK Highways Agency and nuclear decommissioning. Investors should acknowledge that management expect more predictable revenue in the future as a result of less risky forms of contract.

Interestingly, management have highlighted the fact that customers are increasingly looking to consolidate their supply chains and give more work to companies that have delivered projects on time and to budget. Costain looks to be increasingly well placed to benefit from this.

Investors should note that improving the infrastructure system in the UK is something that the majority of political parties agree on. Costain looks set to be a beneficiary of this over future years. We recommend the shares as a long-term ‘buy’ for those with a balanced portfolio and willing to accept a medium level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
sad pensioner
Millions of pension savers not getting sufficient guidance

Five million people who are enrolled in a form of salary-related pension scheme from an old employer are not getting...

Close