Costain admitted its failed takeover bid for contractor May Gurney has cost the firm around £4m. The engineering firm announced in March that it had reached an agreement with May Gurney on the terms of a recommended merger, but was beaten by rivals, the Kier Group, in April, who launched their own bid which was ultimately successful.

In Costain's latest interim management statement, the company said it incurred costs of £4m, before tax, associated with the failed bid. The latest management statement by Morgan Sindall, published on 9 May, warns of continued 'difficult trading conditions' in most of its markets. The report states no 'significant short-term improvement' is envisaged this year, although its affordable housing division, Lovell, has seen market conditions improve.