Constain eyes dividends after 4-year hiatus

Infrastructure company Costain has hinted that it could be close to paying a dividend for the first time in several years.

The company, which has contracts on the HS2 rail project and on several UK roads, said it would make an announcement “shortly”.

Dividends have been paused since 2019. But there may be an interim dividend for the period to June 30, said chief executive Alex Vaughan.

Costain said the government has decided to change the phases and scope of some major transport contracts. 

In March this year, the Government said part of the HS2 rail project would be delayed for two years.

‘There remains a positive outlook, while recognising the short-term rephasing of the Government’s transport spending,’ Vaughan said.

The company said its joint venture which is working on HS2 has three of seven of its tunnel boring machines in operation. Two of these have completed one mile of tunnelling.

The business said pre-tax profit had dropped from £11.2m to £8.3m in the six months to the end of June, while revenue fell 0.1pc to £664m.