Year to 30th June 2004

1
Preliminary Results Presentation
Year to 30th June 2004
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 2003, 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
David Calverley - Chief Executive
Introduction
4
Introduction
Overview

• Record results driven by operational performance
• Construction
• Margins up
• Quality of order book
• Housebuilding
• Expansion plan on track
• Strong in hand sales
• Finances strong
• Good growth opportunities

5
Financial Review
Frank Nelson Finance Director
6
Financial Review
Highlights

• Group turnover up 8 to 687m
• Profit before tax up 32 to 22.7m
• Strong cash flow, gearing of 17
• Dividend increased 13 to 1.7p

Comparison 2002/03 pre exceptionals
7
Financial Review
Summarised Profit Loss Account to 30th June 2004
2003
2004
(m)
Turnover (including Joint Ventures)
695.4 640.4
Profit before interest (pre exceptional) 25.8 20.
4
Interest charge (3.1) (3.2)
Profit before tax (pre exceptional) 22.7 17.2
Exceptional charge - (3.9)
Profit before tax (post exceptional) 22.7 13.3
Earnings per share (fully diluted) Pre
exceptional 6.9p 5.4p Post exceptional 6.9p 4.2
p
Dividend per share 1.7p 1.5p
Return on shareholders funds (pre
exceptional) 34 31
8
Financial Review
Segmental Analysis to 30th June 2004
Group Turnover (including joint ventures)
Profit/(loss)
2003
2004
(m)
2003
2004
Construction 512.9 480.3 4.2 (0.4)
Housebuilding 182.0 159.5 25.5 24.1
Group 0.5 0.6 (3.9) (3.3)
Exceptional charge - - - (3.9)
695.4 640.4 25.8 16.5
Less net interest payable (3.1) (3.2)
Profit before tax 22.7 13.3
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Financial Review
Charge for Pension Deficit
Segmental Profit 2004
2003
As reported
(m)
Pre Charge
Deficit Charge
As reported
Construction 4.2 2.0 6.2 (0.4)
Housebuilding 25.5 0.6 26.1 24.1
Group (3.9) 0.1 (3.8) (3.3)
Exceptional charge - - - (3.9)
25.8 2.7 28.5 16.5
Less net interest payable (3.1) - (3.1) (3.2)
Profit before tax 22.7 2.7 25.4 13.3
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Financial Review
Balance Sheet Highlights
2003
2004
(m)
Shareholders funds 72.3 59.7
Net debt 12.3 17.8
Total capital employed 84.6 77.5
Gearing 17 30
Interest cover 8.5 5.2
Land 122.4 95.7
Work in Progress 53.8 51.6
Land Creditors (44.7) (25.4)
Post exceptional charge
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Financial Review
Cash Flow Summary
2003
2004
(m)
Group operating profit (post exceptional) 24.5 15
.4
Depreciation and amortisation 1.8 1.9
Working capital movements (9.2) (10.1)
Net cash flow from operating activities 17.1 7.2
Interest (2.0) (2.5)
Tax (5.6) (4.2)
Capital expenditure (1.2) (1.7)
Dividends (3.4) (3.3)
Other 0.6 (0.4)
Movement in net debt 5.5 (4.9)
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Construction Business Review
Andy Sturgess Managing Director
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Construction Business Review
Key Highlights

• Growth in profit continues as planned
• Improved cash management
• Success in securing work in chosen markets
• Improved quality of forward order book

14
Construction Business Review
Margin Improvement
15
Construction Business Review
Key Success Factors

• Collaborative working
• Life cycle management
• Design management
• Risk management
• Ability to say NO

Holyhead Wastewater Treatment Scheme
16
Construction Business Review
Sector Opportunities
Business Units
Communications
Rock Alluvium
Partnerships
Wolvey
Warrington
Uxbridge
Market Sectors
Water
Rail
Infrastructure
Health Education
PFI/PPP
Commercial
Interiors
Affordable Housing
Telecommunications
Ground Engineering
Growth gt10
Growth 5-10
Growth 0-5
Decline 0-5
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Construction Business Review
Recent Successes

• Bridge-guard - 50m
• British Waterways - 24m
• Northampton Schools, preferred bidder - 150m
• LIFT Closures - 92m
• Holyhead - 34m
• Bedford, successful handover - 20m
• Swan Housing Framework

Samuel Whitbread School
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Construction Business Review
Total Work in Hand
Work In Hand (m)
Turnover (m) Year to Jun 04
Total Work In Hand Non Price Competitive
Market Sectors
Non Price Competitive
Total
73.9 Water 146.8 146.8
32.6 Rail 62.4 62.4
32.1 Infrastructure 59.1 55.4
16.9 Health 96.6 91.2
69.3 Education 113.3 96.5
128.1 Commercial 60.4 29.4
56.4 Interiors 29.2 24.3
52.1 Affordable Housing 43.5 39.4
38.2 Telecommunications 6.3 6.3
14.8 Ground Engineering 3.3 1.0
514.4 620.9 552.7
89
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Construction Business Review
Current Opportunities

• PFI
• Ealing, financial close - 20m
• Caludon Castle School, financial close - 20m
• Birmingham Schools II, one of two
• Bromsgrove School, one of three
• Rochdale, one of three
• PPP
• Coventry LIFT, financial close - 42m
• Building Schools for the Future
• AMP 4 Water Renewals
• Wimbledon Roof

Wimbledon Roof
20
Construction Business Review
Current Opportunities
Caludon Castle, Coventry
Northampton Schools
Birmingham Schools II
EDUCATION - PFI
Bromsgrove
Rochdale
Barnet, Enfield Haringey
Liverpool Sefton
HEALTH
Ealing
Coventry
Welsh Water
AMP 3
AMP 4
United Utilities
AMP 3
AMP 4
WATER FRAMEWORK
Northumbrian Water
AMP 4
Scottish Water
QS 3
2004
2005
2006
2007
2008
2009
2010
2011
2012
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Construction Business Review
Summary and Outlook

• Profit improvement continues
• Full benefit of recent successes yet to impact
  profit
• Continue to win in our chosen sectors
• Improving quality of order book
• Confident of 2 margin by 2006
• Current strategy/success will enhance profit
  beyond 2006

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Housebuilding Business Review
Greg Fitzgerald Managing Director
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Housebuilding Business Review
Housing Highlights

• Record profits
• New management team at Stamford performing
• Cost reductions going to plan
• Continued good progress with customer
  satisfaction
• Land bank increased
• Strong in hand position

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Housebuilding Business Review
Strong Regional Brands
PETERBOROUGH
FAIRFIELD
UXBRIDGE
LEATHERHEAD
NEWTON ABBOT
29 225k asp
29 - 225,000
38 - 278,000
33 - 176,000
TURNOVER - AVERAGE SELLING PRICE
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Housebuilding Business Review
Key Statistics
12 months to June
2004
2003
Increase
Units 761 741 2.7
ASP 000 224 200 12.0
Income per Sq. Ft. 209 174 20.1
Turnover m 182.0 159.5 14.1
Operating Profit m 25.5 24.1 5.8
Margin 14.0 15.1 (7.3)
ROCE 23.6 23.7 (0.4)
Sales in hand August 04 m 95.3 67.1 42.0
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Housebuilding Business Review
Product Mix and Range of Selling Prices


PRODUCT MIX
RANGE OF SELLING PRICES
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Housebuilding Building Review
Expertise in Individual Design
Little Bithywind, Bradninch
New Inn Court, East Molesey
Austyns Place, Ewell
Hyperion, Torquay
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Housebuilding Business Review
Land Bank Owned or Under Our Control
2004
Increase
2003
Land Bank August 04 - Units
Detailed Planning Permission 1742 1617 8
Outline Planning Permission 185 32 578
Awaiting Planning Permission 593 406 46

Total 2520 2055 23
Strategic Land August 04
Acres 660 612 8
Probable Unit Numbers 2000 2000 -
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Housebuilding Business Review
Market Conditions Planned Growth

• Minimal house price inflation
• Shortage in supply continues to underpin market
• Strengthen position within existing areas and
  expansion into new
• Maximise opportunities within affordable housing
  market
• Quality of management
• Confident of achieving 1250 units by 2007

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Housebuilding Business Review
Expertise in Conversion and Restoration
Coombe Hall Park, East Grinstead
Norah Fry, Shepton Mallet
Livingstone Park, Epsom
Berrybrook Meadow, Berry Pomeroy, Totnes
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Housebuilding Business Review
Summary and Outlook

• Expect to achieve half full year planned
  performance
• Detailed planning permission in place
• Restructuring at Stamford delivering improved
  results
• Stringent land buying criteria
• Enhance efficiency through additional cost
  reductions
• Confident of achieving expansion plan

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Summary and Outlook
David Calverley - Chief Executive
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Summary and Outlook
Platform for Growth

• Delivered targets for 2004
• Significant opportunities in construction
• Housebuilding expansion plan positions us well
• Strong financial platform
• Quality of management teams throughout business
• Business in excellent shape for future growth

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Preliminary Results Presentation
Year to 30th June 2004