Investment case

Delivering growth

The regulated markets in which we operate have high barriers to entry and, alongside the Group’s extensive expertise in delivering asset care and maintenance, provide strong opportunities for growth.

Key growth drivers
  1. Continued sustainable growth
    The Group continues to deliver organic growth whilst looking to build on its strengths through selective acquisitions in both existing and new markets. Margin improvement and the development of our strong client relationships remain key features of our strategy moving forward.
  2. Complementary acquisitions
    The Group seeks to make earnings enhancing acquisitions in businesses that operate in mainly regulated markets and whose skills complement existing capabilities within the Group. We focus on broadening our skills and market opportunities through selective acquisitions.
  3. Working in markets with high barriers to entry
    Many of our businesses work in markets with high barriers to entry. The nuclear, rail and gas markets demand a highly skilled and experienced workforce and a proven track record of safe delivery.
  4. Mainly regulated markets provide visibility
    Our target markets are mainly regulated and are driven by long-term programmes of spending on asset renewal and maintenance, often lasting many years. The asset management programmes in water and rail are examples of the long-term funding requirements associated with national infrastructure networks.
  5. Developing long-term relationships
    Directly delivering an innovative and responsive service has proven to be a differentiator in our markets. Positioned as a key supplier to our clients, we assist them in maintaining their assets and providing continuity of service.
  6. Cash generation
    The Group has consistently generated cash from operations, enabling it to maximise shareholder return. Cash generation assists the Group in the fulfilment of its acquisition strategy and is a strong indicator of the strength of the Group’s operations.
  7. Capital growth
    The Group has grown its market capitalisation more than ninefold since 30 September 2005 without recourse to new equity.

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Markets
Our clients’ infrastructure networks are some of the largest, and oldest, in the country and comprise a range of complex and challenging assets.

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