Tech savvy workforce key to Costain’s future

Grant Prior 6 years ago
Share

The rise in technology across the construction sector has seen a dramatic shift in the skill set of Costain’s workforce.

In its latest half-year results today Costain revealed that 1,300 staff – one third of its headcount – are now working in technology or consultancy roles.

That number is set to increase as hundreds more tech-savvy graduates and apprentices are being trained.

Chief executive Andrew Wyllie said: “We are operating in a dynamic and rapidly changing market environment.

“For example, the National Infrastructure Assessment published last month contemplates close to 100% adoption of electric new vehicle sales in the UK by 2030.

“These trends are causing urgent infrastructure needs and the solutions to address them are increasingly complex and technology enabled.

This rapidly-changing environment is having a very material bearing on all market participants.”  

Wyllie added: “It is creating a wide range of new opportunities for us as we look to deliver ever more innovative solutions to meet the challenges ahead.

“As an example, Connected and Autonomous Vehicles (CAVs) and their enabling infrastructure represent a growing market opportunity expected to be worth circa £11bn per annum in the UK by 2030.

The single biggest factor in our continuing success will be our ability to further embrace the revolution taking place in the use and deployment of technology.

“That is why we have been transforming Costain into the UK’s leading smart infrastructure solutions company, embedding technology across everything we do.”

Wyllie said Costain was focussed on aligning business development activity with clients changing spend patterns.

He said: “As an example, Network Rail announced a 25% increase in spending to £47 billion in Control Period 6, commencing next year, but has also indicated that spending will be targeted towards asset enhancement and the ‘Digital Railway’ rather than large capital projects.

“This common client trend is having a direct impact on the nature and scope of contracts within our quality order book.”

Revenue for the six months to June was down 11.6% to £772.9m but underlying pre-tax profit increased to £21.4m from £18.3m.

The increase in the group profit came from a good return from the Infrastructure division and a significant improvement in the Natural Resources division, which returned to profit in the first-half.

Infrastructure division profits dipped from £24m in the same period last year to £20m as revenue fell 15% to £587m, largely as a result of lower capital project activity.

A stronger performance from water and power activities helped to lift Natural Resources pre-tax profit to £4m after falling £1m into the red in the first six months of 2017.

Average month-end net cash remained strong at £91m.

Costain secured over £600m of contract wins and extensions during the first six months to keep its orderbook stable at £3.7bn.

Wyllie said: “While  the absolute size of the order book remains unchanged, we consider it to be higher quality as the shape and nature of the individual contracts continues to evolve reflecting our changing strategic market positioning.”

Latest news

Police ban mobile cranes from roads over Easter

Plant hire bosses livid as forces across the country extend abnormal load embargoes
23 hours ago

Director jailed for exposing workers to asbestos

Ten tonnes of asbestos insulating board stripped out by unqualified workers
1 day ago

Site labour rates start rising again

Industry's biggest payroll firm says "it feels like things could be turning round"
1 day ago

Council finds extra £33m for Buckinghamshire link road

South East Aylesbury Link Road costs soar by nearly 30% to £147m
1 day ago

Quartet win £490m North West & Central railway works deal

Skanska, Kier, Octavius Infrastructure and Story Contracting bag major projects deal
1 day ago

Unite Students plans first major mixed-use scheme

Developer's first mixed BTR and PBSA project to be built in Edinburgh
2 days ago

Galliford Try names new finance director

Rentokil's Kris Hampson joins contractor to replace Andrew Duxbury
1 day ago

Council boss hits out at bat threat to £274m road job

Natural England could scupper scheme due to be built by Ferrovial
1 day ago

Hydrogen-fuelled diggers to be allowed onto highways

Government to raise barrier to widespread use of hydrogen fuelled plant in construction
2 days ago

Plans in for £118m Government hub in Darlington

Work pencilled to start later this year on new home for 1,450 civil servants
2 days ago

New contractor highlights Henry Construction jobs on website

New firm lists jobs by failed contractor to show its experience
2 days ago

Contractors line up for £2.6bn Anglian Water AMP8 deal

Eight big names land places on pioneering @one Alliance
3 days ago

McAleer & Rushe bags first major later living project

Work to start this month on 167-flat Royal Tunbridge Wells project
2 days ago

Kier starts first all-electric prison houseblock job in Kent

Next-generation fully electric T60 prison houseblock to be built at HMP Elmley
2 days ago

Keepmoat sees better times ahead in housing market

Profits dip in 2023 despite construction of record number of new homes
2 days ago

Vistry signs partnership deals for 1,900 mixed tenure homes

West Sussex former airfield and Newmarket sites to break ground
3 days ago

Turnover at Wates tops £2bn for first time

Construction division exceeds £1bn turnover as average contract value hits record high of £48.3m
3 days ago

L&G looks to sell Cala Homes in exit from house building

Insurance giant reported to be preparing to offload 3,000 homes-a-year developer
4 days ago

Multiplex profit almost trebles as margin hits 5.5%

Revenue jumps 20% to £675m as big London scheme complete
3 days ago

TopHat puts plans to open huge Corby factory on hold

Advanced manufacturing facility was due to employ 1,000 people
3 days ago

Laing O’Rourke lands Calderdale hospital job

Enabling works to start by the end of this year at West Yorkshire site
3 days ago

Go-ahead for £475m Sunderland film and TV studios

Work to start this year on first phase Corwn Work studios
3 days ago

Willmott Dixon set for £20m Stockport Community Hub

Planning decision expected in June on Marple leisure and health clinic project
3 days ago

Police hunt for blundering dumper truck thief

Raider drove into a fence before getting stuck on a bank
3 days ago

Beattie Passive files administration notice

Passivhaus pioneer has been in business for more than ten years
4 days ago

McAlpine set for £50m space and tech centre

Northumbria Uni sign pre-con deal for new satellite research hub
4 days ago

VolkerFitzpatrick seals £34m Kent road viaduct

Work to start next year on Sturry Link Road near Canterbury
4 days ago

Eight win £600m Scottish civil engineering framework

Balfour, Farrans, Graham and Morgan Sindall win major works lot
4 days ago

Site engineer crushed to death by excavator

22-year-old victim died just months after graduating from university
6 days ago

NG Bailey fined £135,000 after hospital site death

Worker died after striking overhead beam while navigating a mobile elevating work platform
7 days ago

Contractor services