Capital Markets Presentation 7 July 2014 1
Trading Underlying trading for the year ended 30 June 2014 in line with expectations Order book at May 2014 up 24% at 1,045m (May 2013: 843m) Group financial position robust, with estimated net cash balance of 38.0m as at 30 June 2014 (June 2013: 36.1m) Significant improvement in majority of our core markets, both in UK and Internationally UK Regional Construction continues to face challenges in line with its market 2
Trading UK Fit Out and Engineering Services Significant revenue and profit growth in H2 Continued success and expansion in our delivery of Data Centers UK Retail Difficult market place for retailers but our retail frameworks are broadly stable Diversification into Hospitality UK Construction Restructuring and reducing to four regions Tonbridge closure completes restructuring, to be treated as a discontinued operation Recent project wins generally being secured under better procurement routes 3
UK Construction 4
Trading Continental Europe Anticipate revenues slightly ahead of last year, though margins have reduced Tecton acquisition performing ahead of expectation Middle East Strong growth in revenue and profit in Dubai and Abu Dhabi Diversification into Hospitality Asia Growth in revenue and profit margin from the strength of retail and hospitality sectors 5
Trading Revenue FY 30 June 2014 m H1 December 2013 m FY 30 June 2013 m Year to 30 June 2014 UK Fit Out and Engineering Services 210 288 UK Retail 156 267 Continental Europe 53 92 UK Construction, 30% UK Fit Out and Engineering Services, 35% Asia, 6% Middle East and Africa 13 26 Asia 42 73 UK Construction 234 538 Group Total 708 1,284 Middle East and Africa, 2% Continental Europe, 7% UK Retail, 21% * increase, flat, decrease vs FY 2013 ** Forecast 6
Margins Improving 1 FY June 2014 Margin H1 December 2013 Margin FY June 2013 Margin % % % UK Fit Out and Engineering Services 1.5 1.7 UK Retail 2.1 2.1 Continental Europe 1.7 1.7 Middle East and Africa 1.1 0.3 Asia 2.6 3.0 UK Construction - 0.2 * increase, flat, decrease vs FY 2013 1 from underlying items 7
Outlook Order Book Order book increased by 24% to 1,045m (May 2013: 843m) Order book for next financial year up 22% to 820m (May 2013: 674m) Overseas order book up 19% to 219m (May 2013: 182m) UK Fit Out and Engineering Services Order Book as at 31 May 2014 m Order Book as at 31 May 2013 m Next Financial Year 31 May 2014 m Next Financial Year 31 May 2013 m 289 198 248 154 UK Retail 159 150 123 123 Continental Europe 33 38 24 28 Middle East and Africa 40 18 34 13 Asia 45 44 36 36 UK Construction 479 395 357 320 Group Total 1,045 843 820 674 of which Overseas 219 182 181 131 8
Outlook Strong order book Starting to benefit from improvement in our key markets both in the UK and overseas Expect to see continued growth in the new financial year in all our key sector offerings 9
Fit Out and Engineering Services Presentation Paul Cossell 7 July 2014 10
UK Fit Out & Engineering Services 11
UK Fit Out & Engineering Services London fit out outlook Central London new development pipeline forecast (m sq ft) Strong demand from occupiers for Central London office space - 3.3 million sq ft of space under offer at end Q1 2014, the highest since Q3 2007 2014 will see a spike in the delivery of new space but a more limited pipeline thereafter Visibility of pre-let office fit out increasing 1980s and early 1990s stock = 25% of London total, presents refurbishment and/or redevelopment opportunity Approx 4.5 m sq ft currently undergoing demolition or strip out works signs of new construction cycle (Deloitte) 2017 may see next development peak (Deloitte) m sq ft 7 6 5 4 3 2 1 0 London lease expiries (m sq ft) 2012 2013e 2014e 2015e 2016e Source: Metropolis, CBRE, Thomas Consultancy Group, Glenigan, Deloitte 12
UK Fit Out & Engineering Services London fit out opportunity London fit out market share by contractor ISG London market leader 29% market share - significant investment made to increase capacity, knowledge and skills across UK and overseas operations to sustain growth Engineering Services offering positions us to take advantage of rise in office refurbishment and new growth areas/locations Anticipated growth from recovery in traditional customer base - Professional and Financial Services sectors Experiencing demand from repeat blue chip customer base in Thames Valley, Manchester and other UK locations Strong forward order book secured largest London office fit out contract of the last twelve months, 125m project to deliver the new UK headquarters for UBS at 5 Broadgate Percentage of space let by sector Oct 2013 March 2014 Source: Metropolis, Deloitte 13
Data Centers Outlook Strongest Q1 in six years for European Data Center letting activity - 16,712 sq m total take-up Driven by cloud computing and growing demand for data center co-location services Energy efficiency and whole life costs are key drivers of market growth Global market expected to grow Opportunity ISG building reputation for successful delivery and discretion completed first 120m project in Nordics, working on over 267m of data center projects Track record growing in UK and Western Europe RBS, Lloyds, HSBC, EDS, Credit Suisse, Higher Education, TMT Skill set is international and agile Secondments from UK for international opportunities Potential to expand offering in Europe and Nordics Source: AMA Research, Data Centre Dynamics, DLA Piper, CBRE, Microsoft 14
Questions? 15