Costain has reported a rise in both revenue and profits in its results for the year ended 31 December 2017.

With Group revenue increasing 4% to £1,728.9 million (2016: £1,658m), underlying operating profit is also up 18% to £48.7m (2016: £41.1m). Reported profit before tax was up 26% to £38.9m (2016: £30.9m).

Chief Executive Andrew Wyllie said the company is fulfilling its purpose to improve the lives of millions across the UK by deploying technology-based engineering solutions which address "urgent national infrastructure needs in energy, water and transportation".

"We have benefited from proactively aligning the business in a rapidly changing market environment and evolving client requirements, allowing us to differentiate Costain and deliver another strong trading result," he said.

"There is a revolution taking place in the use of technology and innovation across infrastructure which is having a profound impact on the market, and creating a wide range of exciting new opportunities for Costain. We are transforming Costain into the UK's leading smart infrastructure solutions company and are looking to the future with confidence."

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As a result of its strong market position, Costain secured over £2 billion of new contract awards and extensions to existing contracts during the year.

However, £350m was removed from the order book in August as the company was unable to agree final terms and conditions for the completion of the marine works contract at Hinkley Point C.

Mr Wylie continued: "Consequently, the Group's high-quality order book at 31 December 2017 was maintained at £3.9 billion (31 December 2016: £3.9 billion), providing good visibility for the Group's future performance."

In addition, the company has increased the number of employees in consultancy and technology roles over the last three years by 300% to 1,300.

Chair Paul Golby, said: "Costain had another strong year with increases in revenue, profit and cash.

"Our performance is a direct consequence of our ongoing transformation and differentiation into the UK's leading smart infrastructure solutions company. This transformation keeps Costain relevant to our clients who are faced with ever greater urgency and complexity in meeting the UK's infrastructure needs, and who require our technology-led offering to help deliver their multi-billion pound programmes and service enhancements.

"As a result of our strong performance and our confidence for the future, I am pleased to announce the Board's recommendation to increase the total dividend for the year by 10% and I look forward to reporting on future progress."

(LM/MH)