Slide 1: Results presentation
Results presentation For the six months ended 30 June 2025 Together we shape, create, deliver Results presentation Half Year 2025 Bewl Reservoir – Southern Water
Slide 2: Operating Review
Operating Review Alex Vaughan Chief Executive Officer Together we shape, create, deliver Sellafield
Slide 3: Highlights
Highlights Performance underpins both confidence in FY 25 expectations and forward growth trajectory • Continued strong performance – increase in operating profit and margins • Revenue of £525.4m (H1 24: £639.3m), with growth in Natural Resources offset by a reduction in Transportation, reflecting e
Slide 4: Transportation
Transportation Strong contract performance and broadening customer mix Revenue Performance reflects portfolio transition £316.1m Financial performance reflects expected timing of lower volumes in Road, the impact of the rephasing of HS2 (H1 24: £444.3m) volumes and increased investment in devolved g
Slide 5: Natural Resources
Natural Resources Strong performance, significant growth in committed investment Revenue Strong performance and good momentum £209.3m Predictable contract performance and growth in forward work, with higher margins as we benefit from a number (H1 24: £195.0m) of successful contract finalisations in
Slide 6: Financial Review
Financial Review Helen Willis Chief Financial Officer Together we shape, create, deliver HS2
Slide 7: Headline financial results
Headline financial results Increased operating profit, margin and forward work underpins confidence in FY 25 expectations H1 25 H1 24 Change • Group revenue of £525.4m, a reduction on the prior period Financial Summary reflecting growth in Natural Resources offset by reduction in £m £m Transportatio
Slide 8: Revenue walk
Revenue walk Growth in Natural Resources offset by a reduction in Transportation Revenue H1 25 vs H1 24 (17.8)% • Group revenue reduced by 17.8% £639.3m • Transportation revenue decrease Natural Resources of 28.9%, reflecting expected +7.3% £7.3m £525.4m revenue reductions in Road, due to £(93.9)m £
Slide 9: Operating profit walk
Operating profit walk Quality of contracts and strong execution drives 3.1% increase in adjusted operating profit to £16.8m Operating Profit H1 25 vs H1 24 Adjusted operating profit growth +3.1% • Adjusted operating profit growth of 3.1%. Reported operating profit up 18.0% £7.7m £2.4m £16.3m £(0.7)m
Slide 10: Finance income/(expense)
Finance income/(expense) Net finance income benefitting from strong cash position Finance Incom e / (Expense) H1 25 H1 24 • £2.6m of interest income from bank deposits, lower than H1 24 of £3.5m on decreased £m £m cash on deposit at lower rates Interest income from bank deposits 2.6 3.5 • £1.5m of i
Slide 11: Balance sheet
Balance sheet Net assets position continues to strengthen Consolidated statement of financial position H1 25 FY 24 • Net cash position of £144.9m £m £m Assets Retirement benefit asset 56.1 54.9 • Retirement benefit asset increased on FY 24 Other non-current assets 91.8 99.8 position Total non-curren
Slide 12: H1 25 cash walk
H1 25 cash walk Net cash position at end of H1 25 of £144.9m, expect year-end net cash position to be around £170m 180.0 • Adjusted free cash outflow of £3.0m 170.0 160.0 158.5 • Closing net cash position of (0.4) 0.5 £144.9m (2.9) (0.1) 150.0 (4.8) 144.9 140.0 -£3.0m (4.9) (1.0) • Expect FY 25 year
Slide 13: Cash and banking facilities
Cash and banking facilities Strong balance sheet, with successful refinancing of facilities Net Cash(1) £m H1 25 FY 24 • Average month-end net cash balance during H1 25 £149.4m Cash 85.0 95.8 (FY 24: £169.8m) Cash held at joint ventures 59.9 62.7 Loans 0.0 0.0 144.9 158.5 • Average week-end net cash
Slide 14: Strength of forward work position
Strength of forward work position Well positioned to deliver future growth Forward Work Position • Forward work position of £5.6bn, up from £5.4bn at end of FY 24 6.0 £5.6bn £5.4bn • More than 4x FY 24 revenue 5.0 £4.3bn 2.2 • Forward work position is built on long-term 4.0 2.9 programmes that enabl
Slide 15: Predictable delivery
Predictable delivery Effective risk management underpins quality of contract portfolio Work winning Contract duration Contract Enhanced legal Senior Independent review Operational Financial Deep dive selection process management standards oversight risk review review Underpins margin targets and pre
Slide 16: Capital allocation
Capital allocation • Investing for growth: • Cost base continues to prioritise capabilities and expertise to support growth • Capital expenditure of around £10m in systems across FY 25 and FY 26 • Significant increase in interim dividend to 1.0p (H1 24: 0.4p) • Target dividend cover of three times a
Slide 17: Confident in delivery of FY 25 expectations
Confident in delivery of FY 25 expectations • Real momentum in our chosen markets of Transport, Water, Energy, and Defence and Nuclear Energy • The high quality and volume of our forward work, together with growth on existing frameworks, gives us good visibility on future revenue and profit • We rem
Slide 18: Strategy & Outlook
Gallows Corner - TfL Strategy & Outlook Alex Vaughan, Chief Executive Officer Together we shape, create, deliver Results presentation Half Year 2025 18
Slide 19: Our business
Our business Creating a sustainable future Purpose Improving people's lives Vision To create connected, sustainable infrastructure enabling people and the planet to thrive Sustainable A more prosperous UK A more resilient UK A decarbonised UK future Strategic Growth in strong Predictable best in A r
Slide 20: Significant growth in strategic infrastructure investment
Significant growth in strategic infrastructure investment Market Dynamics: Consistency – Continuity – Collaboration Committed Investment 2026 2027 2028 2029 2030 2031 2032 investment (1) period National and local roads £24bn 2026 - 2030 Motorway and local road improvements(5) High Speed Rail £25bn 2
Slide 21: Meeting our customers broader needs
Meeting our customers broader needs Results presentation Half Year 2025 21
Slide 22: Engineering solutions on major capital programmes
Engineering solutions on major capital programmes A leading construction partner for complex infrastructure Thames Tideway Road Nuclear Energy Strategic Reservoir Programmes HS2 AMP8 Water Frameworks Aviation Devolved Transport Results presentation Half Year 2025 22
Slide 23: Building a meaningful consultancy service
Building a meaningful consultancy service Leveraging our core expertise in complex programme delivery Delivery Partner • Consultancy services comprised 16.5% of H1 25 revenue (FY 24: 12%) • Wins in H1 25 include: Defence Cadent Devonport Heathrow Urenco • Urenco: Delivery partner framework plus FEED
Slide 24: Diverse range of forward work
Diverse range of forward work Focussed on broadening our customer mix • Forward work increased to £5.6bn at end H1 25 (FY 24: £5.4bn, H1 24: £4.3bn) • We have an increasingly diverse customer base: • Strong position in water • Improving position in aviation & local transport • Growing energy, and de
Slide 25: Increasing confidence in the Group's growth prospects
Increasing confidence in the Group’s growth prospects Further progress in FY 25 and FY 26, with a step change in FY 27 performance • Improved quality of contract portfolio, a broader customer and service mix, and enhanced business resilience is driving confidence in delivery of FY 25 and medium-term
Slide 26: Q&A
Click icon to add picture Gallows Corner - TfL Q&A Together we shape, create, deliver Results presentation Half Year 2025 26
Slide 27: Appendices
Spernal WwTW: Severn Trent Water Appendices Together we shape, create, deliver Results presentation Half Year 2025 27
Slide 28: Cash flow
Cash flow Consolidated cash flow statem ent H1 25 H1 24 £m £m as restated Cash from operations before changes in w orking capital and provisions 24.2 21.4 Changes in w orking capital and provisions (34.7) 2.8 Movement in other provisions and employee benefits (2.5) (2.8) Interest and tax paid 0.5 (0
Slide 29: Adjusted to Reported Reconciliation
Adjusted to Reported Reconciliation £m H1 25 H1 24 Reported Contract Other Adjusted Reported Contract Other Adjusted Adjustments Adjustments Adjustments Adjustments Group Revenue 525.4 0.0 0.0 525.4 639.3 0.0 0.0 639.3 Cost of sales (473.5) 0.0 0.0 (473.5) (594.7) 0.0 0.0 (594.7) Gross Profit 51.9 0
Slide 30: Adjusted Free Cash Flow
Adjusted Free Cash Flow Adjusted free cash flow H1 25 H1 24 £m £m as restated Cash from operations (13.0) 21.4 Add back cash flow on adjusting items 0.4 3.3 Add back pension deficit contributions 0.0 1.7 Add back / (less) cash flows on cash and cash equivalents – with restrictions 9.7 (6.2) Less tax
Slide 31: H1 25 IFRS 16 impact
H1 25 IFRS 16 impact Income statement impact £m Decrease in operating costs 6.1 Loss on disposal of assets (0.2) Increase in depreciation (4.7) Increase in finance costs (1.2) Net impact on income statement (0.0) Fixed Assets impact £m Fixed assets opening position 27.0 Additions 3.5 Disposals (1.3)
Slide 32: Cautionary forward-looking statements
Cautionary forward-looking statements This presentation contains certain statements that are forward-looking statements based on current expectations and reasonable assumptions. Various known and unknown risks, uncertainties and other factors may cause actual results to differ from any future result