1. Year End Preliminary Results – September 20081 Preliminary Results Presentation, Year to 30 th June 2008 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director

2. Year End Preliminary Results – September 20082 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 2005 (the “Order”) or (b) any other persons to who it may otherwise lawfully be communicated, falling within Article 49(2) 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 2007, 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. Year End Preliminary Results – September 20083 Agenda Key Highlights Financial Overview Operating Review Summary and Outlook

4. Year End Preliminary Results – September 20084 Key Highlights

5. Year End Preliminary Results – September 20085 Key Highlights Record profits in difficult economic environment Excellent performance from Building, Infrastructure and Affordable Housing Total housing completions up on previous year despite market conditions Housebuilding supported by strength in Affordable Housing

6. Year End Preliminary Results – September 20086 Key Highlights Linden integration complete - savings ahead of forecast Acquisition of Kendall Cross Industry leading Health and Safety performance Management succession implemented Financial strength improved

7. Year End Preliminary Results – September 20087 Key Highlights New Structure and Succession

8. Year End Preliminary Results – September 20088 Financial Overview

9. Year End Preliminary Results – September 20089 Group revenue £1,832m, up 30% Profit before tax Pre exceptional £71.8m, up 35% Post exceptional £60.3m, unchanged Earnings per share Pre exceptional 13.6p, up 9% Post exceptional 11.4p, down 20% Net Debt at 30 June 2008, £2m (2007: £99m) Total Dividend 3p, unchanged Return on average shareholders’ funds, 19% (2007: 28%) Highlights Financial Overview

10. Year End Preliminary Results – September 200810 Total Bank Facility £450m £300m until 2012 £150m amortising to £90m in 2012 Significant headroom over projected requirements Projections well within banking covenants Substantial contract bonding facilities Rigorous working capital management Financing Financial Overview

11. Year End Preliminary Results – September 200811 Goodwill and Exceptional Items Linden Goodwill £52.3m Strategic purchase adding critical mass to South East Synergy savings achieved £3m Additional purchasing power Brand and office bases intact Impairment calculations support carrying value Conservative profit recognition Exceptional Items £11.5m Restructuring costs £2.4m Land write downs and abortive costs £9.1m Independent valuations on substantial part of portfolio Independent review of build costs Provisions on sites with negative margins Overall assessment against a break even contribution Financial Overview

12. Year End Preliminary Results – September 200812 Income Statement 20082007 £m Revenue1,831.91,409.7 Profit from operations*89.362.8 JV interest and tax(4.7)(0.3) Profit before finance costs, amortisation and exceptionals 84.662.5 Intangibles amortisation(2.0)(1.4) Profit before exceptionals and finance costs82.661.1 Net finance costs(10.8)(8.1) Profit before exceptionals71.853.0 Exceptional items - land write downs and abortive costs(9.1)- - restructuring costs(2.4)(1.9) - property rationalisation-3.9 - pensions, actuarial gain-5.2 Profit before tax60.360.2 * Profit from operations is stated before finance costs, exceptional items, amortisation and share of joint ventures’ interest and tax Financial Overview

13. Year End Preliminary Results – September 200813 Segmental Analysis to 30 th June 2008 – Profit from Operations Revenue (including JVs) £m Profit/(Loss) £m 200820072008 2007 Building 605.4580.111.911.0 Infrastructure 541.3410.713.89.8 Construction1,146.7990.825.720.8 PPP Investments 5.03.52.9(1.1) Affordable Housing & Regeneration 230.4128.413.86.1 Housebuilding 486.3304.453.844.1 Group 0.31.1(6.9)(7.1) 1,868.71,428.289.362.8 Intangibles amortisation(2.0)(1.4) Less JV interest and tax(4.7)(0.3) Net interest payable(10.8)(8.1) Profit before exceptionals71.853.0 Exceptional items(11.5)7.2 Profit before tax60.360.2 Financial Overview

14. Year End Preliminary Results – September 200814 Segmental Analysis to 30 th June 2008 – Profit Before Tax Revenue (including JVs) £m Profit/(Loss) £m 200820072008 2007 Building605.4580.117.414.0 Infrastructure541.3410.715.110.5 Construction1,146.7990.832.524.5 PPP Investments5.03.52.4(1.4) Affordable Housing & Regeneration230.4128.49.34.3 Housebuilding486.3304.424.623.8 Group 0.3 1.19.73.5 1,868.71,428.278.554.7 Intangibles amortisation(2.0)(1.4) Less JV interest and tax(4.7)(0.3) Profit before exceptionals71.853.0 Exceptional items(11.5)7.2 Profit before tax60.360.2 Financial Overview

15. Year End Preliminary Results – September 200815 Share of the Cake – Profit Before Tax 20072008 Excludes Group and PPP Investments Financial Overview

16. Year End Preliminary Results – September 200816 Finance Costs - Net 2008 £m 2007 £m Net interest payable7.91.6 On unwinding of discount on creditors4.75.1 Net return on asset of pension fund(0.9)0.7 Other(0.9)0.7 10.88.1 Financial Overview

17. Year End Preliminary Results – September 200817 Balance Sheet Highlights 20082007 Shareholders’ funds £m *325.3306.6 Net debt £m(1.7)(98.7) Gearing0.5%32% Interest cover - total (IFRS)6.6 x8 x - bank8.4 x23 x Land £m426.5547.6 Work in progress £m183.8157.3 Land creditors £m **(76.5)(145.5) Deferred payment – Linden & Chartdale £m(0.8)(43.9) * Includes £19.7m net pension deficit (2007: £18m) ** Excludes JV commitments Financial Overview

18. Year End Preliminary Results – September 200818 2008 £m 2007 £m Operating cash flow149.610.4 Interest, tax and dividends(37.8)(25.4) Net proceeds from issue of shares0.3147.0 Acquisitions (net of cash acquired)(6.1)40.1 Repayment of borrowings acquired-(261.0) Proceeds from sale of fixed assets0.319.6 * Capital expenditure and investments(10.7)(4.7) Other1.4(40.7) Net cash (outflow)/inflow97.0(114.7) Opening net cash/(debt)(98.7)16.0 Closing net (debt)/cash(1.7)(98.7) Cash Flow Summary * Includes proceeds from sale and leasebacks Financial Overview

19. Year End Preliminary Results – September 200819 Operating Review - Building

20. Year End Preliminary Results – September 200820 Operating Review - Building Margin reflects upper quartile performance Strong performance from all business units FM business consolidated Market conditions becoming more challenging Secured 82% of current year’s workload Key Highlights

21. Year End Preliminary Results – September 200821 Operating Review - Building Major contracts proceeding well Geographic coverage increased Encouraging pipeline of Public Sector opportunities Profits conservatively reported Strong cash generation Key Highlights

22. Year End Preliminary Results – September 200822 Forward Order Book: August 2008 Sectors£m Health114 Education87 Prisons121 Commercial172 Interiors55 FM151 Other Public Sector90 790 Operating Review - Building Excludes Affordable Housing

23. Year End Preliminary Results – September 200823 Operating Review - Infrastructure

24. Year End Preliminary Results – September 200824 Operating Review - Infrastructure Margin reflects upper quartile performance Strong market conditions, despite economy Organic growth of over 38% Industry leading performance in Water Secured 80% of current year’s workload Key Highlights

25. Year End Preliminary Results – September 200825 Operating Review - Infrastructure Development and growth of Renewables capability Good progress on Whitelee Windfarm and Olympic contracts Secured 25% share of the £445m M74 Highways project Excellent customer satisfaction results Strong cash generation Key Highlights

26. Year End Preliminary Results – September 200826 Operating Review - Infrastructure Forward Order Book: August 2008 Sectors£m Water396 Highways268 Flood Alleviation102 Rail 20 Waterways 15 Remediation 93 Communications 23 Renewable Energy 9 International 12 Ground Engineering 4 942

27. Year End Preliminary Results – September 200827 Operating Review - Investments

28. Year End Preliminary Results – September 200828 Operating Review - Investments Secondary markets remain strong Worcester Library –shortlist in the Autumn Maghull & Belmarsh prisons – bids to be submitted early October with G4S Directors’ valuation shows uplift of £11.1m Key Highlights

29. Year End Preliminary Results – September 200829 Operating Review - Affordable Housing and Regeneration

30. Year End Preliminary Results – September 200830 Key Highlights Operating Review - Affordable Housing and Regeneration Award of £25m of Housing Corporation Grant Enhanced revenues achieved Intermediate market vehicle established 11% of speculative sales made to RSLs Excellent relationships with Housing Corporation and English Partnerships

31. Year End Preliminary Results – September 200831 Operating Review - Affordable Housing and Regeneration Key Highlights Kendall Cross acquisition Major regeneration schemes in Grimsby and Plymouth progressing well Increased number of frameworks Market fundamentally strong but RSLs becoming risk adverse

32. Year End Preliminary Results – September 200832 Key Statistics: including share of joint ventures Operating Review - Affordable Housing and Regeneration 12 months to June 2008 20082007Inc/(Dec)% Units Total694317189% - Affordable533155244% - Regeneration161162(1)% Av. Selling Price £000 Total123130(5)% -Affordable1121102% - Regeneration1571486% Revenue £m Total230.4128.479% - Affordable60.017.1251% - Regeneration47.124.096% - Contracting123.387.341% Profit from Operations £m13.86.126% Margin %6.0%4.8% In hand position Aug 08 £m - Afford. & Regeneration87809% - Contracting Order Book14912618% Land bank Aug 08 units3,5003,600(3)%

33. Year End Preliminary Results – September 200833 Operating Review - Housebuilding

34. Year End Preliminary Results – September 200834 Market Conditions Operating Review - Housebuilding Extremely difficult market Visitor numbers reduced High cancellation rate Mortgage availability and consumer confidence key constraints Consortium sites and apartments worst affected Improved supply chain availability

35. Year End Preliminary Results – September 200835 Key Highlights Operating Review - Housebuilding Aggressive sales policy proving to be correct Cost base reduced by £12m per annum Substantial build savings achieved Reduced land bank Strong focus on cash management

36. Year End Preliminary Results – September 200836 Key Highlights Operating Review - Housebuilding Part exchange exposure under tight control Minimal exposure to consortium sites Linden integration complete Industry leading customer satisfaction Solid operational performance in extremely difficult market

37. Year End Preliminary Results – September 200837 Operating Review - Housebuilding Key Statistics pre exceptionals - including Joint Ventures 12 months to June 2008 20082007 Increase/ (Decrease) % Units1,8301,20951 Average Selling Price £000220242(9) Revenue £m48630460 Profit from operations £m53.844.122 Margin %11.1%14.5% ROCE *14.3%19.5% In hand position August 08 £m126243(48) Land bank August 08 units5,4007,600(29) Strategic land August 08 acres1,4301,508(5) * Includes housebuilding and affordable housing and regeneration

38. Year End Preliminary Results – September 200838 Market Outlook Operating Review - Housebuilding No improvement expected in short term Encouraging sales levels achieved over summer Very prudent land procurement policy Continue to reduce exposure to apartments Strong relationship with Affordable Housing sector continues Fundamentals remain strong

39. Year End Preliminary Results – September 200839 Summary and Outlook

40. Year End Preliminary Results – September 200840 Summary and Outlook Market conditions for next 12 months Housing to remain extremely difficult Affordable Housing growth to pause Building sector to become more challenging Infrastructure to remain strong Aggressive housing sales policy to continue Hybrid model working well Group well placed in testing times Strong and focused management team

41. Year End Preliminary Results – September 200841 Preliminary Results Presentation Year to 30 th June 2008

42. Year End Preliminary Results – September 200842 Appendix 1 Office Locations