Costain Group PLC (LSE:COST), the manufacturing and engineering firm, shares rose 3% after it signed its second contract with a water company in as many days, penning a deal with Southern Water.
The London-listed group’s CMDP+ joint venture with MWH Treatment secured a seven-year contract worth £500 million, with an option to be extended by an additional five years.
It comes a day after the firm won a £6.6 million contract with Thames Water to upgrade treatment sites in Hertfordshire.
This contract builds on an earlier deal to upgrade facilities in Sandhurst, Berkshire and Selborne.
Since Labour took power, Costain has announced an influx of new contracts including a hydrogen pipeline network with BP in Teeside and the production of a new dual carriageway in Cornwall.
This uptick in work has resulted in Costain shares surging by more than 42% in 2024, having jumped by over 20% since mid-June, when the Conservatives were still in power.
Whether the spike in revenues will lead to surging profits will be a key question for shareholders, who will be given some insight next Wednesday at its interims.