Markets

Markets driven by regulation

Our clients’ infrastructure networks are some of the largest, and oldest, in the country and comprise a range of complex and challenging assets. Regulation exists to maintain operational standards on these critical networks, with maintenance requirements delivered through long-term programmes of care with visible funding.

Energy

Nuclear

  • The UK government’s commitment to dealing with the nuclear legacy continues. The latest government forecast to manage the whole of the mission is £70bn (discounted at today’s prices), with a programme lasting until 2120. The Nuclear Decommissioning Authority’s medium-term forecasts indicate a rate of expenditure of around £3bn per annum, with around 70% of this commitment at Sellafield.
  • New nuclear power is an essential part of the government’s objective of delivering a sustainable and low-carbon energy future to meet increasing demand.

Thermal and renewable

  • There remain good opportunities in the renewable energy market as the UK responds to increasing energy demand whilst looking to deliver its targets for renewable power generation.
Environmental

Water

  • UK water companies, regulated by Ofwat, undertake long-term investment programmes on their infrastructure networks. In the current five year investment period, AMP6, we estimate our clients Northumbrian Water, Wessex Water and Dwr Cymru Welsh Water will spend around £3.2bn on maintaining their water infrastructure assets. The UK government has also committed a record £2.3bn investment in coastal and river flood risk management to 2021.

Land remediation

  • The Environment Agency estimates that in England and Wales approximately 300,000 hectares of land could potentially be affected by historical contamination. In the UK, the focus on brownfield land as a potential solution to the UK’s land shortage provides opportunities for our remediation services.
Infrastructure

Rail

  • Network Rail is investing around £41bn in the current control period (“CP5”) to 2019 in running, maintaining and improving Britain’s railway. The government recently announced an increase in funding to £48bn for CP6, which runs from 2019 to 2024. CP6 will focus on both maintenance and renewals on the rail network as key priorities.

Wireless telecoms

  • The wireless telecoms infrastructure market remains attractive as demand for mobile internet access and communication continues to outstrip the capability and capacity of the current networks. Licence obligations under the 4G programme continue to demand significant investment and our addressable market remains strong.
Specialist Building

High quality residential

  • The high quality residential market in London and the Home Counties remains robust. We have particular specialist engineering expertise in major structural alteration works both above and below ground.

References

  • Nuclear Decommissioning Authority, Nuclear provision: explaining the cost of cleaning up Britain’s nuclear legacy (February 2015).
  • Department for Environment, Food and Rural Affairs, Reducing the risks of flooding and coastal erosion: an investment plan (December 2014).
  • Environment Agency, Reporting the evidence. Dealing with contaminated land in England and Wales (January 2009).
  • Department for Transport - Railways Act 2005 Statement: Statement of Funds Available (October 2017).

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Business model
By the effective management and control of our subsidiary businesses, we deliver shareholder value through capital growth and a progressive dividend policy.

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