Tuesday, December 6, 2022
- Advertisement -
Home Supply Chain Costain Board and senior leadership team agree 30% reduction in salaries and...

Costain Board and senior leadership team agree 30% reduction in salaries and directors’ fees for up to 3 months

Costain has revealed details of the impact of COVID-19 and the measures it is taking to safeguard its future.

The company provides infrastructure for the rail industry from major station projects to multi-disciplinary rail projects.

On-site construction activities which represents 30% of its revenues – including Crossrail and HS2 enabling works – have been paused during the coronavirus crisis.

Advertisement

In managing its response to COVID-19, Costain has outlined four priorities:

  • Doing the right thing for society.
  • Ensuring the safety and wellbeing of its workforce, supply chain partners, clients and the communities it works in.
  • Continuing to support clients in the delivery of their critical national services.
  • Protecting the financial strength of the company.

Costain says all employees who can work from home are now doing so and those recognised as essential workers are working in compliance, as a minimum, with the Government’s prescriptive guidance to social distancing at work.

Among the measures to mitigate the financial impact of COVID-19 the company is:

  • Making reductions to cost base and deferring capital expenditure.
  • Taking advantage of the opportunity to defer PAYE and VAT payments.
  • The Board and senior leadership team have agreed a 30% reduction in salaries and directors’ fees for up to three months.

To safeguard jobs across Group it will make use of the Government’s job retention scheme, and will ‘furlough’ the affected workforce, ensuring immediate remobilisation when conditions improve.

The Board had already taken the decision not to pay a final dividend in respect of the year ended 31 December 2019 at the time of its results on 11 March 2020.

As at 26 March 2020, the Group had £40m of cash, £90m share of cash in project bank accounts and joint operations and £166m of drawn debt. In addition, the Group has a further £71m of bank debt facilities.

Alex Vaughan, chief executive officer, said: “I would like to thank everyone who is supporting our business through this challenging period and in particular all our workforce who continue to work so professionally, as they always do, in supporting each other and meeting our clients’ critical needs.

“We are continually monitoring and implementing the necessary measures to safeguard those who continue to work on essential projects across the UK. Our priorities remain their safety and wellbeing, doing the right thing for society, continuing to support our clients and protecting the financial strength of the Group.

“I am confident that the steps we are taking to manage our business through this uncertainty will ensure we are well placed to respond strongly once our operations can full resume.”

Photo credit: Shutterstock 

image_pdfDownload article

Most Popular

Huge warehouse fire causing rail delays

Firefighters have been dealing with a major warehouse fire next to railway lines in Wolverhampton. For safety Network Rail was forced to close the tracks...

The Railway Children Sleepout is back for 2023

The Railway Children Sleepout is back for 2023 after a record-breaking night raised over £180,000 last time. This incredible event draws people from across...

RMT announce new rail strikes over Christmas

Transport Secretary Mark Harper has accused the RMT of failing to play its part after the union has instructed its members to reject a...

Completion of the first tranche of Southern fleet modernisation

Govia Thameslink Railway (GTR) has completed a comprehensive modernisation programme for Southern Railway's 75 “Class 377/4” trains. New features include passenger priorities such as...
- Advertisement -