Costain, the engineering solutions provider, has delivered a strong performance in the first half of the year according to its Interim Management Statement published today for the period from 1 July 2014 to the current date.

The Group’s forward order book has increased further since the half-year, and currently stands at a new record level of £3.3 billion.

As well as including over £900 million of revenues secured for 2015 (2013: over £700 million secured for 2014), the order book also provides good long-term visibility with over £2.2 billion of revenues secured for 2016 and beyond.

In addition to the record order book, the Group has a strong preferred bidder position of over £400 million, and the level of tendering activity across all its target markets remains high.

The statement said the firm is continuing to perform well in line with Board expectations and that the Group is benefiting from its “unique and well-positioned strategy” which is focussed on major customers who are investing billions of pounds meeting national needs in energy, water and transportation, commenting:

“Costain’s reputation for developing and implementing innovative engineering led solutions through a range of integrated services and the benefits of the successful capital raise of £70.3 million (net of expenses) in March are enabling the Group to continue to take advantage of the opportunities created by its strategy and to continue to win significant contracts and extensions.”

Additional work won during the period under review includes:

• Southern Water’s 2015 - 2020 (AMP6) investment programme;

• Two Smart Motorway Scheme contracts on the M1 for the Highways Agency;

• Upgrade of the Dimlington gas terminal for Perenco; and

• Appointment by BAE Systems, as announced separately today, as one of its framework contractors on the redevelopment of its submarine site, in Barrow-in-Furness, Cumbria.

According to Costain, the increasingly strategic nature of its long-term customer relationships has ensured that over 90% of the order book comprises repeat business and is in target cost, cost reimbursable, collaborative forms of contract providing increased visibility over long-term margins at lower risk.