Costain prospers from tech boom whipping UK networks into shape

Technology, not concrete, is the way to solve Britain’s infrastructure crisis, one of Britain’s biggest civil engineers said on Wednesday.

Costain chief executive Andrew Wyllie said there was a “revolution” in making existing infrastructure more efficient rather than build more.

“There is an urgent national need to improve our infrastructure and the debate is how best to do that,” he said.

“The rapid trend at the moment is that rather than build your way out of it you invest to make your existing infrastructure smarter.”

Costain, which positions itself as a “smart infrastructure solutions company”, is benefiting from the trend, with half-year pre-tax profits up to £18.3 million from £14.1 million.

The company is hiking the dividend to 4.75p per share.

Last year Costain bought Simulation Systems, which is fuelling the growth of so-called “smart motorways”.

SSL makes technology which allows the hard shoulder to turn into an extra lane of traffic when it’s busy.

Wyllie said it was exploring further bolt-on takeovers.

The company, which works on a vast array of UK projects like Crossrail, and the tube upgrade plan, won a £600 million deal for early work on HS2.

However, it said one of its EDF contracts for Hinkley Point had been scrapped after delays to the project.