Costain launches £10m share buyback
Construction and engineering firm announced a £10.0m on-market share buyback programme on Monday as it confirmed that trading has remained in line with internal expectations so far in H1.
Costain said it retains a "strong, high-quality forward work position" that was more than four times its annual revenue and noted that it was "busy bidding further new work" across all sectors.
The FTSE 250-listed firm noted that together with growth of existing frameworks across its broad customer mix, recent contract wins had given it "increasing confidence" in its ability to deliver further progress.
Costain also highlighted that it remains on track to meet its 4.5% adjusted operating margin run rate target during FY25.
As to the buyback programme, Costain stated that after reviewing its cash performance and ongoing capital requirement, it concluded that an on-market share buyback programme for a maximum aggregate consideration of £10.0m was an "appropriate and value-enhancing use of cash".
It said the buyback will reduce its share capital and, accordingly, any ordinary shares purchased by the company will be cancelled.
Reporting by Iain Gilbert at Sharecast.com
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