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Construction and engineering firm Costain saw its shares plummet after it reported a nearly 20% drop in revenue for the first half of the year.
The company explicitly linked the disappointing performance to ongoing delays and uncertainties surrounding the UK's high-speed rail project, HS2.
Despite the revenue slump, Costain did announce a dividend increase, which was not enough to reassure investors.
The news underscores the financial risks for companies heavily involved in large-scale government projects that are subject to political and logistical delays.
For Costain, HS2 was a cornerstone of its forward-looking business strategy, and the project's setbacks have had a direct and significant impact on its financial health.
The share price tanking reflects a loss of investor confidence in the company's ability to generate reliable income from its major contracts.
The situation at Costain highlights the broader challenges facing the UK's infrastructure sector, where major projects are often plagued by budget overruns and delays, creating a ripple effect that impacts contractors and their shareholders.
2025-08-24 16:53:00


22% of workers report money worries harming job performance, with 19% taking sick leave due to financial stress, per BSA research.
2025-09-23 13:26:00
BMW sets aside £206.9m for potential car finance mis-selling payouts amid FCA investigation.
2025-09-22 16:47:00
UK housing market sees 2% price drop in Q3 2025, driven by high interest rates and economic uncertainty.
2025-09-22 15:23:00
A three-bedroom house in Nantlle filled with rubbish goes to auction with a £45,000 guide price, requiring full renovation.
2025-09-20 23:40:00

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