1. Preliminary Results Presentation – September 2005 Preliminary Results Presentation Year to 30 th June 2005

2. Preliminary Results Presentation – September 2005 Introduction Greg Fitzgerald - Chief Executive

3. Preliminary Results Presentation – September 2005 Introduction Record results through good operational performance Construction Margins up to 1.5% Housebuilding Record profits and increase in margins in difficult market Potential in affordable housing Proven and motivated management Strong platform for future growth Overview

4. Preliminary Results Presentation – September 2005 Frank Nelson – Finance Director Financial Review

5. Preliminary Results Presentation – September 2005 Summary Exceeded targets in 2005 Group turnover £718m-up 5% Profit before tax £26.3m-up 16% Earnings per share 8.4p-up 17% Dividend 2.1p-up 24% Strong Construction cash flow - gearing of 15% Return on shareholders’ funds of 33% Tax charge reduced to 29.3% Financial Review

6. Preliminary Results Presentation – September 2005 Financial Review Segmental Analysis to 30 th June 2005 (including Joint Ventures) 2004 2005(£m) Construction537.7 512.9 7.8 5.7 20042005 Group TurnoverProfit/(loss) Housebuilding188.0 182.0 26.4 25.5 Group0.5 0.5 (4.5) (3.9) 726.2 695.4 28.5 25.8 Less net interest payable(2.2) (3.1) Profit before tax26.3 22.7 PPP Investments- -(1.2) (1.5)

7. Preliminary Results Presentation – September 2005 Financial Review International Financial Reporting Standards Profit & Loss Effect Balance Sheet Effect LowHigh Low TimingLow Pensions Share based payments Dividend recognition

8. Preliminary Results Presentation – September 2005 Financial Review Balance Sheet Highlights 20042005(£m) Net debt12.5 12.3 Shareholders’ funds86.2 72.3 Total capital employed98.7 84. 6 Gearing15% 17% Interest cover 12.8 8.5 Land143.9 122.4 Work in Progress64.1 53.8 Land Creditors(48.7) (44.7)

9. Preliminary Results Presentation – September 2005 Financial Review Cash Flow Summary 20042005(£m) Depreciation and amortisation1.8 1.8 Group operating profit 26.9 24.5 Working capital and other movements(14.9) (9.2) Interest(1.6) (2.0) Tax(8.5) (5.6) Dividends(3.9) (3.4) Net cash flow from operating activities13.8 17.1 Movement in net debt(0.2) 5.5 Capital expenditure(1.6) (1.2) Other1.6 0.6

10. Preliminary Results Presentation – September 2005 Andy Sturgess – Managing Director Construction

11. Preliminary Results Presentation – September 2005 Margins up to 1.5% in line with expectation Excellent cash generation circa £40m throughout year Quality order book maintained Management team further strengthened Construction Key Highlights

12. Preliminary Results Presentation – September 2005 Construction Profitability % Net Margin STABILISATIONGROWTHRECOVERY 200420052003 1.5 1.0 0.5 0.0 1.5% 1.1% (0.01)%

13. Preliminary Results Presentation – September 2005 Infrastructure 61.3 61.3 Education137.7 104.7 Water 229.4229.4 Commercial 152.6 129.9 Interiors24.0 14.9 Health117.8115.8 Telecommunications7.7 5.3 Affordable Housing144.2116.1 Rail65.765.7 Ground Engineering3.52.5 Market Sectors 943.9 845.6 Total Work In Hand Non Price Competitive 90% Work In Hand (£m) Non Price Competitive Total Forward Order Book Construction

14. Preliminary Results Presentation – September 2005 LIFT second tranche in design United Utilities AMP4 Affordable Housing remains strong BSF – Shortlisted Solihull Northampton Schools PFI Construction Key Opportunities

15. Preliminary Results Presentation – September 2005 41 schools 34 month construction period 80% new build 20% refurbishment Planning achieved on all but one school Late autumn financial close Construction Northampton Schools PFI

16. Preliminary Results Presentation – September 2005 Strong management teams Sector focus well established Earliest possible involvement Partnership approach Profitability towards 2% margins Construction Summary & Outlook

17. Preliminary Results Presentation – September 2005 Andy Sturgess – Managing Director PPP Investments

18. Preliminary Results Presentation – September 2005 Creating construction opportunities Stringent selection criteria Equity stake 15%-50% Performance 2004 – 2005 Financial close on four projectsValue £120m Preferred bidder Northampton SchoolsValue £150m Future prospects LIFT – 2 nd tranche LIFT – 4 th wave BSF Solihull – short listed PPP Investments Overview

19. Preliminary Results Presentation – September 2005 Greg Fitzgerald – Chief Executive Housebuilding

20. Preliminary Results Presentation – September 2005 Housing Highlights Record profits and increase in margins Further cost reductions achieved Exceptional customer satisfaction results Controlled increase in land bank Encouraging ‘in-hand’ position Planning permissions in place for current year Housebuilding

21. Preliminary Results Presentation – September 2005 2005 Housebuilding 12 months to June 2004Increase % Average Selling Price £000 208224 (7.1) Turnover £m 1881823.3 Margin % 14.114.00.7 ROCE % 22.323.6(5.5) Sales in hand August 05 £m 100.495.35.3 Operating Profit £m 26.425.53.5 Income per Sq. Ft. £ 2222096.2 Landbank August 05 units 260525203.4 Strategic land August 05 acres 6956605.3 Key Statistics (including Joint Ventures) Units 853761 12.1

22. Preliminary Results Presentation – September 2005 Market Conditions and Focus Encouraging sales activity since July No house price inflation for next two years Planning process continues to be difficult Labour readily available Differentiation through individual design Avoid consortium sites and high rise apartments Capitalise on strengths in affordable housing Housebuilding

23. Preliminary Results Presentation – September 2005 Housebuilding Midas & Gerald Wood Homes Units 310 Average selling price £000 191 Brownfield and conversion %65 Land bank985 Customer satisfaction % 91 Planning for Truro hospital site First completions from expansion area

24. Preliminary Results Presentation – September 2005 Housebuilding Stamford Homes Units 269 Average selling price £000 169 Brownfield and conversion % 53 Land bank599 Customer satisfaction % 91 Good progress in affordable housing Land acquired from Coventry LIFT

25. Preliminary Results Presentation – September 2005 Housebuilding Try Homes Southern Units 144 Average selling price £000 267 Brownfield and conversion % 100 Land bank385 Customer satisfaction % 89 Large conversion site in Banstead acquired Expansion into Kent and East Sussex

26. Preliminary Results Presentation – September 2005 Housebuilding Try Homes Thames Valley Units 130 Average selling price £000 258 Brownfield and conversion %100 Land bank636 Customer satisfaction % 95 Substantial eight acre site acquired in West London

27. Preliminary Results Presentation – September 2005 Housebuilding Summary & Outlook All business units performing well Expansion proceeding to plan More opportunities for land acquisition Expertise in affordable housing Comfortable with current market conditions

28. Preliminary Results Presentation – September 2005 Affordable Housing Greg Fitzgerald – Chief Executive

29. Preliminary Results Presentation – September 2005 Construction and Housebuilding Divisions Comprehensive capability for affordable housing Working with 16 affordable housing providers Work in hand up to £152 million New opportunities through: Construction taking development role Planning requirements on housebuilding sites Pre-qualified for grant direct from the Housing Corporation Considerable scope for growth Affordable Housing

30. Preliminary Results Presentation – September 2005 Summary and Outlook Greg Fitzgerald - Chief Executive

31. Preliminary Results Presentation – September 2005 Strong financial position Construction: Increase in profit margins and cash generation Growth in chosen markets Housebuilding: Performing in a difficult market Proven business model Synergies between divisions Excellent opportunities in affordable housing Confidence in growth plans Organic and by acquisition Summary and Outlook Platform for Growth