Published on 4th June 2013
Costain, the go-to infrastructure builder in the capital, has done well to tie its future to that of big customers, but so far it has failed in its stated goal of breaking out of low-margin construction. Likewise, it continues to be almost wholly focused on the UK – which, relative to other regions, is unlikely to return to the construction boom fast lane. Not only that, but it is hard to see where the transformational deal which its top executives want will come from. The shares are now trading at over ten times’ this year’s forecast profits, more than enough for a construction company. Even so, “if you are a holder of the stock, it seems reasonable to continue to be,” says The Times’s Tempus.