Reasons to Invest

The Leading UK Player

• The UK’s largest ground engineering contractor with the broadest range of specialist services, and a presence across all UK regions
• Differentiated end-to-end capability from initial ground investigation and survey, through to design and UK’s widest range of specialist construction capabilities
• A well invested rig fleet – the largest in the UK with over 140 rigs
• Transformation strategy completed, experienced Board and senior management team in place
• Diverse and leading position across housing, infrastructure and construction markets enable early benefit from upside investment cycles, whilst mitigating against sub-sector headwinds
• Successful track record of recent M&A and plan for further consolidation and diversification
• Leading position in high-growth water and energy sub-sectors
• Leading position in rail
• One of only two national providers of modular foundation systems (Smartfoot) to the housing sector
• Increasing proportion repeat business (approximately 30% of revenues) through customer frameworks, in all sectors
• Low-risk commercial model as a specialist subcontractor – minimal exposure to typical construction sector risks

Strong Financial Position

• Strong balance sheet, available funding facility and low levels of debt
• In excess of £50m replacement cost of plant and machinery
• Liquidity headroom to support further growth, M&A and capital investment
• Stable institutional shareholder base
• A progressive and well covered dividend, approximately 3% yield
• Up to £11m funding facility

Clear Strategy for Growth

Medium term growth plans include:

• >10% compounded year-on-year revenue growth from FY2025 driven by:
  • Housing market and tall residential market recovery
  • Essential infrastructure investment drives rapid growth in water and energy sectors
  • Increased CP7 volumes and major projects (eg TRU) in rail
  • Expected growth in logistics, data centres and industrial facilities
  • New integrated civils capability
  • Further bolt-on acquisitions
  • New customer partnerships and frameworks

 

• EBIT margin improvement from 4% to 6–7% by FY28:
  • Pricing advantage from scale and differentiated breadth of expertise
  • Evolving work mix towards greater proportion of infrastructure revenues
  • Leveraging fixed overhead and corporate costs against increased revenues, driving higher rig utilisation
  • Continued commercial governance, bid selectivity and risk management to avoid low margin projects and commercial disputes

 

• ROCE improvement to 15–20% by FY28:
• • All new operational capex meets 25% ROCE threshold
  • Continual refreshing of the rig fleet to maximise utilisation and reliability
  • Disposal of non-profit generating assets