In the year to 31st December 2021 Costain made a pre-tax loss of £13.3m, following pre-tax losses of £96.1m in 2020 and £6.6m in 201 9.
The 2020 results include £39.6m of adjusting items, mainly related to legacy contract issues. Stripping out the one-off costs of correcting these past mistakes and the accounts show adjusted operating profit up 67% to £30.1m on group revenue of £1,135m (2020: £978m)
Actual operating loss was £9.5m.
Chief executive Alex Vaughan said that the results contained no surprises and that the business had “good momentum”.
He said: “We have delivered an improved operating performance and results in line with market expectations, including significant growth in adjusted operating profit and margin, and good free cash flow generation.
“Infrastructure is facing enormous change, underpinned by significant committed investment and generating huge opportunities for us and, in my mind, addressing these changes requires a different approach. We have aligned our services to meet the changing needs of our clients, allowing us to shape, create and deliver pioneering solutions that transform the performance of the infrastructure ecosystem.
“Looking ahead, while we are mindful of the macro-economic backdrop, we have already secured more than £1bn of group revenue for 2022 and have entered the new year with good momentum. We expect to deliver further progress in 2022 and remain confident in the group’s strategy and longer-term prospects.”
Costain also reported that Paul Golby will step down as chair and from the board within the next 12 months once a successor has been appointed. Paul Golby joined the Costain board as chair in 2016. “The group is now well positioned to generate sustainable growth in the future,” he said, “and I feel this is the right time to undertake a search for my successor.”