REG - Costain Group PLC - Costain Announces Key Contract Extension

CostainAnnouncement

17/07/2023 07:00

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RNS Number : 1436G  Costain Group PLC  17 July 2023

 

Costain Group PLC

17 July 2023

Costain Announces Key Contract Extension

United Utilities extends contract into next water regulatory cycle

 

Costain Group PLC ("Costain") announces that it has been appointed by United
Utilities to work as its Managed Service Provider (MSP) for a further two
years, from May 2024 to May 2026. This contract extension has an option to be
extended for a further three years and builds on the original five-year MSP
contract awarded in 2019. The award extends into the next regulatory cycle
(AMP8 2025-2030).

United Utilities is the UK's largest listed water company and is working to
ensure the resilience of its network to the effects of climate change,
including improving the quality of its wastewater effluent and providing a
reliable drinking water supply to its customers.

Since 2019, Costain has provided management and asset maintenance activities
throughout the north-west at 96 water treatment sites, 575 wastewater
treatment sites, pumping stations and service reservoirs which serve over
seven million people.

The MSP framework consists of two types of work:

·    Core contract: This includes maintenance services of very
high-volume, short-duration activities to more than 900 sites covering repair,
replacement and refurbishment of equipment such as pumps. It also covers core
projects which are of a greater scale and complexity, delivered as projects.
Since the start of 2022, the MSP has developed solutions to 132 Core Projects
including installation of a new mixer system within Wayoh Impounding
Reservoir, Lancashire and an upgrade to existing gas holders at Manchester
Bio-resource Centre (MBC) at Davyhulme Wastewater Treatment Works in Greater
Manchester.

·    Non-core contract: This includes the delivery of larger capital
projects such as the design and construction of remedial improvements to the
Clough Bottom Impounding Reservoir in Lancashire and upgrades to the Audlem
Wastewater Treatment Works in Cheshire.

Within the MSP Framework, Costain has delivered a wide range of activities and
projects to date and made a significant contribution to United Utilities
meeting key regulatory requirements.

Sam White, managing director of Natural Resources, Costain said:

"This is a strategically important contract for Costain. We've already
delivered big improvements working together with United Utilities on the MSP
Framework, leveraging increased automation of data processing and insights to
enhance our service delivery. I'm delighted that we'll be continuing this
relationship to help United Utilities ensure a sustainable, resilient and
efficient service for its customers."

Enquiries

 

 Investors and analysts      paul.sharma@costain.com
 Paul Sharma, Costain        +44 7867 501188

 Financial media - Headland  costain@headlandconsultancy.com
 Andy Rivett-Carnac          +44 (0) 7968 997 365
 Charlie Twigg               +44 (0) 7946 494 568

 

Notes to editors

 

Costain helps to improve people's lives by creating connected, sustainable
infrastructure that enables people and the planet to thrive. We shape, create
and deliver pioneering solutions that transform the performance of the
infrastructure ecosystem across the UK's transport, energy, water, and defence
markets.

 

We are organised around our customers anticipating and solving their
challenges and helping to improve performance. By bringing together our unique
mix of construction, consulting and digital experts we engineer and deliver
sustainable, efficient and practical solutions.

 

 

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