1. Interim Results Presentation 2005 February 2005 Investor Relations Presentation

2. Interim Results Presentation 2005 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 Company’s statutory accounts. Statutory accounts for 2004, 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. Disclaimer *

3. Interim Results Presentation 2005 Record results again driven by operational performance Construction Generated good cash flow Margins up to 1.2% Order book up to £957m Housebuilding Margins up to 13.3% Expansion going to plan Encouraging level of sales since Christmas Management succession Good growth opportunities Introduction Overview

4. Interim Results Presentation 2005 Turnover steady at £347 million Profit before tax up 22% at £11.7 million Earnings per share up 19% at 3.7p Interim dividend up 9% at 0.60p per share Net debt of £10.3 million represents gearing of 13% Financial Review Highlights

5. Interim Results Presentation 2005 Financial Review Summary Profit & Loss Account (£m) Dec 2003 (£m) Dec 2004 Profit before interest 12.8 11.4 Interest (1.1)(1.8) Turnover (including joint ventures)347.6356.4 Profit before tax 11.79.6 Diluted earnings per share 3.5p2.9p Dividend per share 0.60p0.55p For the half year ended 31 December 2004

6. Interim Results Presentation 2005 Financial Review Dec 2003 Dec 2004 Construction256.1268.73.02.0 Dec 2003Dec 2004 Group Turnover (£m) (including joint ventures) Profit/(loss) (£m) Housebuilding91.187.612.111.2 Group0.30.1(2.3)(1.8) 347.5356.412.811.4 Less net interest payable(1.1)(1.8) Profit before tax11.79.6 For the half year ended 31 December 2004 Segmental Analysis

7. Interim Results Presentation 2005 Cash Flow Summary Financial Review Dec 2004 (£m) Increase in stock and developments(10.0)(6.1) (Decrease)/increase in land creditors(3.7)1.9 (Decrease)/increase in other creditors (10.6) 2.3 Net inflow 2.0 6.2 Decrease in debtors21.11.7 Interest, tax, dividends, share capital & other movements(7.5)(4.6) Net debt brought forward(12.3)(17.8) Group operating profit 12.7 11.0 Dec 2003 (£m) Net debt carried forward (10.3) (11.6) For the half year ended 31 December 2004

8. Interim Results Presentation 2005 Financial Review Dec 2003 (£m)Dec 2004 (£m) Net debt 10.3 11.6 Shareholders’ funds79.4 65.5 Total capital employed 89.7 77.1 Gearing13%18% Interest cover 11.6 6.3 Balance Sheet, Financing

9. Interim Results Presentation 2005 United Utilities AMP4 Three LIFT schemes closed Caludon Castle, Coventry PFI on site Scottish Water Regeneration Contractor of the Year Wimbledon redevelopment Construction Key Highlights

10. Interim Results Presentation 2005 % Net Margin -0.9% 0.6% 0.8% Construction 0.9% 1.2% Profitability

11. Interim Results Presentation 2005 General market set for 2% - 3% in growth medium term Health & Education remain strong Rail opportunities increasing Affordable Housing Some signs of recovery in commercial market Water - AMP 4 revenues maintained Construction Market Overview

12. Interim Results Presentation 2005 Construction United Utilities - AMP 4 Scottish Water performing to expectations Welsh Water - Holyhead Activity levels unchanged AMP 3 - AMP 4 Water

13. Interim Results Presentation 2005 Construction Three LIFTS now closed Seven projects on site Next tranche about to commence Significant opportunities emerging Government announce next LIFT schemes Health

14. Interim Results Presentation 2005 Construction Acknowledged as education specialists Northampton Schools – Preferred Bidder Both Rochdale & Bromsgrove at ITN stage Building Schools for the Future Education

15. Interim Results Presentation 2005 Construction Significantly increased forward order book Strengthened senior management team Further potential in strategic alliances Regeneration Contractor of the Year Affordable Housing

16. Interim Results Presentation 2005 Construction Recent contract awards Prestigious client base Technically challenging Mixed use schemes more common Selectivity still essential Commercial

17. Interim Results Presentation 2005 Construction 19.1Infrastructure 53.7 50.6 38.2 Education134.6 119.2 54.5 Water 334.0334.0 52.2 Commercial 120.1 75.5 23.8Interiors22.4 20.8 9.0 Health126.6123.3 13.3 Telecommunications6.1 6.1 22.8 Affordable Housing 103.7 101.7 15.6 Rail52.352.3 7.6 Ground Engineering3.12.4 Market Sectors Turnover (£m) Half Year to Dec 04 256.1 956.6 885.9 Total Work In Hand Non Price Competitive 93% Work In Hand (£m) Non Price Competitive Total Forward Order Book

18. Interim Results Presentation 2005 Profit progression maintained Quality of order book across chosen markets Preferred bidder opportunities All business units performing to expectation Growth in profits set to continue Construction Summary and Outlook

19. Interim Results Presentation 2005 Housing Highlights Record profits and improved margins Cost reductions achieved Land bank increased Excellent customer satisfaction results Strong “in-hand” position Expansion going to plan Housebuilding

20. Interim Results Presentation 2005 2004 Housebuilding 6 months to December 2003Increase % Units 3873675.4 ASP £000 228228 - Turnover £m 91.187.64.0 Margin % 13.312.83.9 ROCE % 22.521.64.2 Sales in hand February 05 £m 165.6171.1(3.2) Operating Profit £m 12.111.28.0 Income per Sq. Ft. £ 22019711.7 Landbank February 05 units 2,4642,3425.2 Strategic land February 05 acres 666676(1.5) Key Statistics

21. Interim Results Presentation 2005 Market Conditions and Focus Minimal house price inflation Increased use of sales incentives Sub-contractors becoming more competitive Shortage in supply continues to underpin market Encouraging sales rate since Christmas Good opportunities in affordable housing Individually designed schemes and conversion Housebuilding

22. Interim Results Presentation 2005 Housebuilding Try Homes Thames Valley Units 60 Average selling price £000 268 Brownfield and conversion 100% Customer satisfaction 98% Achieved planned performance

23. Interim Results Presentation 2005 Housebuilding Try Homes Southern Units 76 Average selling price £000 278 Brownfield and conversion 100% Customer satisfaction 90% Exceeded planned performance

24. Interim Results Presentation 2005 Housebuilding Stamford Homes Units 130 Average selling price £000 176 Brownfield and conversion 58% Customer satisfaction 92% Exceeded planned performance New management team performing well

25. Interim Results Presentation 2005 Housebuilding Midas & Gerald Wood Homes Units 121 Average selling price £000 232 Brownfield and conversion 59% Customer satisfaction 95% Exceeded planned performance Geographic expansion proceeding to plan

26. Interim Results Presentation 2005 Housebuilding Affordable Housing Large growth area Important part of business Expertise in collaborative developments Market leader in Southwest

27. Interim Results Presentation 2005 Housebuilding Summary & Outlook Expect to achieve full year planned performance All business units performing well Current market conditions sustainable Stringent land buying criteria with market more realistic Well placed to maximise opportunities from affordable housing Confident of achieving expansion plan

28. Interim Results Presentation 2005 David Calverley - Chief Executive Summary and Outlook

29. Interim Results Presentation 2005 Construction prospects underpinned by: Improving profit margins Balanced workload Housebuilding: Current market conditions sustainable Development led affordable housing a growth area Strength and depth of management team Business well positioned for further growth Summary and Outlook