StockMarketWire.com - Costain said its first-half results would include a £45m hit after an arbitration decision reversed the ruling of previous adjudication awards, which had split the responsibility for the design information of the A465 project between both the company and Welsh government.

The lastest decision found that responsibility for the design information of the project rests with Costain and, consequently, the additional costs associated with the building of the retaining wall was not a compensation event under the contract.

On the basis of the uncertainty of recovery of such costs following the arbitration award, the group's half year results for the period to 30 June 2020, due 14 September, would include a charge of £45m, the company said.

Costain said it was in ongoing discussions with the Welsh Government to reach agreement on a final financial settlement and to seek recovery of costs under the contract.

At 10:05am: [LON:COST] Costain Group PLC share price was -12.17p at 40.33p



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