February 2005

1
Investor Relations Presentation
February 2005
2
Disclaimer
This presentation is being made only to and is
directed at (a) persons who have professional
experience in matters relating to investments
falling within Article 19(1) of the Financial
Services and Markets Act 2000 (Financial
Promotion) Order 2001 (the Order) or (b) any
other persons to who it may otherwise lawfully be
communicated, falling within Article 49(1) of the
Order (all such persons being referred to as
relevant persons). Any person who is not a
relevant person should not act or rely on this
presentation or any of its comments. The
financial information set out in this document
does not constitute the Companys statutory
accounts. Statutory accounts for 2004, which
received an auditors report that was unqualified
and did not contain any statement concerning
accounting records or failure to obtain necessary
information and explanations, have been filed
with the Registrar of Companies.

3
Introduction
Overview

• Record results again driven by operational
  performance
• Construction
• Generated good cash flow
• Margins up to 1.2
• Order book up to 957m
• Housebuilding
• Margins up to 13.3
• Expansion going to plan
• Encouraging level of sales since Christmas
• Management succession
• Good growth opportunities

4
Financial Review
Highlights

• Turnover steady at 347 million
• Profit before tax up 22 at 11.7 million
• Earnings per share up 19 at 3.7p
• Interim dividend up 9 at 0.60p per share
• Net debt of 10.3 million represents gearing of
  13

5
Financial Review
Summary Profit Loss Account
For the half year ended 31 December 2004
(m) Dec 2003
(m) Dec 2004
Turnover (including joint ventures) 347.6 356.4
Profit before interest 12.8 11.4 Interest
(1.1) (1.8)

Profit before tax 11.7 9.6
Diluted earnings per share 3.5p 2.9p
Dividend per share 0.60p 0.55p
6
Financial Review
Segmental Analysis
For the half year ended 31 December 2004
Group Turnover (m) (including joint ventures)
Profit/(loss) (m)
Dec 2003
Dec 2004
Dec 2003
Dec 2004
Construction 256.1 268.7 3.0 2.0
Housebuilding 91.1 87.6 12.1 11.2
Group 0.3 0.1 (2.3) (1.8)
347.5 356.4 12.8 11.4
Less net interest payable (1.1) (1.8)
Profit before tax 11.7 9.6
7
Financial Review
Cash Flow Summary
For the half year ended 31 December 2004
Dec 2003 (m)
Dec 2004 (m)
Group operating profit 12.7 11.0
Increase in stock and developments (10.0) (6.1)
(Decrease)/increase in land creditors (3.7) 1.9
Decrease in debtors 21.1 1.7
(Decrease)/increase in other creditors (10.6)
2.3
Interest, tax, dividends, share capital
other movements (7.5) (4.6)
Net inflow 2.0 6.2
Net debt brought forward (12.3) (17.8)
Net debt carried forward (10.3) (11.6)
8
Financial Review
Balance Sheet, Financing
Dec 2003 (m)
Dec 2004 (m)
Shareholders funds 79.4 65.5
Net debt 10.3 11.6
Total capital employed 89.7 77.1
Gearing 13 18
Interest cover 11.6 6.3
9
Construction
Key Highlights

• United Utilities AMP4
• Three LIFT schemes closed
• Caludon Castle, Coventry PFI on site
• Scottish Water
• Regeneration Contractor of the Year
• Wimbledon redevelopment

10
Construction
Profitability
Net Margin
1.2
0.9
0.8
0.6
-0.9
11
Construction
Market Overview

• General market set for 2 - 3 in growth medium
  term
• Health Education remain strong
• Rail opportunities increasing
• Affordable Housing
• Some signs of recovery in commercial market
• Water - AMP 4 revenues maintained

12
Construction
Water

• United Utilities - AMP 4
• Scottish Water performing to expectations
• Welsh Water - Holyhead
• Activity levels unchanged AMP 3 - AMP 4

13
Construction
Health

• Three LIFTS now closed
• Seven projects on site
• Next tranche about to commence
• Significant opportunities emerging
• Government announce next LIFT schemes

14
Construction
Education

• Acknowledged as education specialists
• Northampton Schools Preferred Bidder
• Both Rochdale Bromsgrove at ITN stage
• Building Schools for the Future

15
Construction
Affordable Housing

• Significantly increased forward order book
• Strengthened senior management team
• Further potential in strategic alliances
• Regeneration Contractor of the Year

16
Construction
Commercial

• Recent contract awards
• Prestigious client base
• Technically challenging
• Mixed use schemes more common
• Selectivity still essential

17
Construction
Forward Order Book
Work In Hand (m)
Turnover (m) Half Year to Dec 04
Total Work In Hand Non Price Competitive
Market Sectors
Non Price Competitive
Total
54.5 Water 334.0 334.0
15.6 Rail 52.3 52.3
19.1 Infrastructure 53.7 50.6
9.0 Health 126.6 123.3
38.2 Education 134.6 119.2
52.2 Commercial 120.1 75.5
23.8 Interiors 22.4 20.8
22.8 Affordable Housing 103.7 101.7
13.3 Telecommunications 6.1 6.1
7.6 Ground Engineering 3.1 2.4
256.1 956.6 885.9
93
18
Construction
Summary and Outlook

• Profit progression maintained
• Quality of order book across chosen markets
• Preferred bidder opportunities
• All business units performing to expectation
• Growth in profits set to continue

19
Housebuilding
Housing Highlights

• Record profits and improved margins
• Cost reductions achieved
• Land bank increased
• Excellent customer satisfaction results
• Strong in-hand position
• Expansion going to plan

20
Housebuilding
Key Statistics
6 months to December
2004
2003
Increase
Units 387 367 5.4
ASP 000 228 228 -
Income per Sq. Ft. 220 197 11.7
Turnover m 91.1 87.6 4.0
Operating Profit m 12.1 11.2 8.0
Margin 13.3 12.8 3.9
ROCE 22.5 21.6 4.2
Sales in hand February 05 m 165.6 171.1 (3.2)
Landbank February 05 units 2,464 2,342 5.2
Strategic land February 05 acres 666 676 (1.5)
21
Housebuilding
Market Conditions and Focus

• Minimal house price inflation
• Increased use of sales incentives
• Sub-contractors becoming more competitive
• Shortage in supply continues to underpin market
• Encouraging sales rate since Christmas
• Good opportunities in affordable housing
• Individually designed schemes and conversion

22
Housebuilding
Try Homes Thames Valley

• Units
  60
• Average selling price 000 268
• Brownfield and conversion 100
• Customer satisfaction 98
• Achieved planned performance

23
Housebuilding
Try Homes Southern

• Units 76
• Average selling price 000 278
• Brownfield and conversion 100
• Customer satisfaction 90
• Exceeded planned performance

24
Housebuilding
Stamford Homes

• Units 130
• Average selling price 000 176
• Brownfield and conversion 58
• Customer satisfaction 92
• Exceeded planned performance
• New management team performing well

25
Housebuilding
Midas Gerald Wood Homes

• Units 121
• Average selling price 000 232
• Brownfield and conversion 59
• Customer satisfaction 95
• Exceeded planned performance
• Geographic expansion proceeding to plan

26
Housebuilding
Affordable Housing

• Large growth area
• Important part of business
• Expertise in collaborative developments
• Market leader in Southwest

27
Housebuilding
Summary Outlook

• Expect to achieve full year planned performance
• All business units performing well
• Current market conditions sustainable
• Stringent land buying criteria with market more
  realistic
• Well placed to maximise opportunities from
  affordable housing
• Confident of achieving expansion plan

28
Summary and Outlook
David Calverley - Chief Executive
29
Summary and Outlook

• Construction prospects underpinned by
• Improving profit margins
• Balanced workload
• Housebuilding
• Current market conditions sustainable
• Development led affordable housing a growth area
• Strength and depth of management team
• Business well positioned for further growth