Despite the positive outlook from Costain upon the release of its first half of FY 25 results, shares in the company fell by 13 per cent in the opening minutes of trade in London, largely due to further delays to HS2. The Bishopsgate-based business said its overall revenue fell 17.8 per cent to £525m for the first six months of the year, of which revenue for its rail infrastructure services slumped 23.3 per cent to £185m, says CityAM.
Costain said the fall was “due to the development of a new integrated programme schedule for HS2, which is rephasing elements of our contracted activities in the short term into future years.
“The HS2 programme continues to be navigating a change in its programme delivery strategy.”
Costain shares fell 14.2 per cent to 140p on Wednesday. The slide came after the government warned the opening of HS2 was set to be delayed beyond its original target date of 2033, but could not confirm when the new high speed London-Birmingham line would now likely open.
Transport Secretary Heidi Alexander said a “litany of failures” had led to delays and increased costs, telling the House of Commons:
“It gives me no pleasure to deliver news like this. Billions of pounds of taxpayers’ money has been wasted by constant scope changes, ineffective contracts and bad management.”
(Pic: Costain)
