Costain secures contract with HS2

Construction and engineering group Costain has been awarded a new contract as a sole supplier to deliver tunnel and lineside mechanical and electrical systems for HS2.

Costain said on Wednesday that the contract, which has a total value of at least £400.0m, will be signed "in due course" and starts in Q125 for a seven-year period, with the option for additional contract extensions.

The London-listed group stated the contract will see it deliver the design, supply, manufacture, installation, testing and commissioning of HS2's Tunnel and Lineside M&E systems during construction.

Chief executive Alex Vaughan said: "Costain has a long-standing involvement with the UK's largest strategic infrastructure programme and this new contract is a testament to the strength of our collaborative and successful relationship with HS2.

"Our teams will draw on their experience and expertise to deliver world-class systems, using the latest technology to drive efficiency."

As of 0905 GMT, Costain shares were untraded at 105.0p.

Reporting by Iain Gilbert at Sharecast.com