British engineering solutions provider Costain is a top choice for investors seeking a long term idea for a medium risk balanced portfolio. Investors should note that the group, based in Berkshire, stated last month that it remains on track to deliver results in line with management expectations. Costain’s strategy aims on winning contracts in the water, energy and transportation sectors and has proved successful in gaining involvement with current high profile projects such as Crossrail and London Bridge station. The latest contract win in July was for motorway improvement. Those interested should note that the current government wants to improve on UK infrastructure, which is something that Constain may benefit from.

Investors will appreciate that Costain’s management expects more predictable revenue in the future as a result of less risky forms of contract. The group has also been building on current blue-chip relationships, leading to 90% of revenue representing repeat business. We currently recommend shares in Costain as a buy for long-term investors.

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