Engineering and construction group Costain has announced  that its forward order book has increased further to a new record level of £2.7 billion, up from £2.5 billion at 30 June 2009.

In an Interim Management Statement issued to the Stock Exchange covering the period from 1 July 2009 to date, Costain said it continued to see strong levels of tendering activity, both in established sectors such as water and infrastructure, and in newer business areas such as nuclear and waste. The Group's preferred bidder position is currently in excess of £400 million - reflecting recent successes in converting previous preferred positions to firm orders.

Order Book

The increased order book follows major contract awards including:

• an extension to its current 5-year AMP4 framework contract with United Utilities worth £170 million;
• a £297 million contract for Sellafield Ltd for the Evaporator D project extending the project from the original planning into the delivery phase; and
• Bradford Schools Phase 2 PFI, in joint venture, valued at £230 million

In August, the Group reported a strong operating result for the first half of 2009, and that it had entered the second half of the year with a record order book, robust finances and a net cash balance in excess of £100 million. Since then, Costain has continued to perform in line with the Board's expectations.

The Group's strategy remains focused on major blue-chip customers, particularly those whose capital investment programmes are necessitated by legislation or regulation, or where projects are of high priority in the current uncertain economic environment.

Costain said it continued to enjoy a strong cash position of well in excess of £100 million, has no significant borrowings and that it was continuing to perform in line with Board expectations. The Group has already secured revenues of over £800 million for 2010, substantially ahead of the position for 2009 at this time last year.