Costain Group PLC (LSE:COST) is mulling restoring the dividend after a solid performance so far in 2023 and progress in boosting its financial position.
In the six months to 30 June 2023, the construction and engineering firm reported flat revenue of £664.4 million, but a 20% jump in pre-tax profit to £15.9 million from £13.3 million the year before.
The improved profit reflected robust growth in natural resources, resilience in transportation and continued positive cash generation.
This has left Costain looking at restoring the interim dividend with an announcement expected “shortly”.
“The increase in operating performance and the positive outcomes regarding the pension review and refinancing, enables the board to consider the resumption of dividend payments, including the payment of an interim dividend in respect of the period to 30 June 2023,” the firm said.
The transformation programme to create efficiencies is on track, with further benefits to come in the coming months and Costain expects the sectoral growth seen in natural resources together with the rephasing and rescoping of some infrastructure projects in rail and road to continue for the remainder of the year and into 2024.
Expectations for the rest of the year remain unchanged, backed by more than 90% of revenue already being secured for the remainder of 2023.