Costain, which is undertaking a number of projects in the Midlands, including work at Good Hope Hospital, Sutton Coldfield, reported a 39 per cent rise in pre-tax profits to £7.5 million for the six months to 30 June. Sales for the period rose by 2.3 per cent to £345.4 million and operating profit was 66 per cent ahead at £7.8 million. Costain has not paid a dividend since 1991 and is again omitting an interim payout following shareholder approval of a financial restructuring exercise involving the reduction of the share capital and the cancellation of the share premium account. Mr Doughty's strategy to re-focus operations and reduce risk has seen Costain win some significant contracts, particulary in the water industry where it has picked up a raft of infrastructure deals worth up to £1.7 billion.