Costain Group PLC (LON:COST) said its underlying trading over the last three months of 2020 has “remained profitable with good cash generation” despite the coronavirus (COVID-19) pandemic.
In a trading update for the year ended December 31, 2020, the infrastructure group said it anticipates reporting results for the period “in line with expectations”, with its order book at the year-end standing at £4.2bn, the same level as the previous year.
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The firm also said it has secured £1.02bn in orders for 2021 and that its year-end cash position is ahead of expectations at £102.5mln.
In a note on Tuesday, analysts at Peel Hunt reiterated their ‘buy’ rating and 75p target price on Costain, saying that in the long term they believe that “management strategy and long standing infrastructure sector experience will reward shareholders well” and the shares “should start to materially re-rate” as confidence improved in the 2021 financial year.
Costain shares were 1.7% lower at 56.4p in early trading.