1. Preliminary Results Presentation – September 2004 Year to 30 th June 2004 Preliminary Results Presentation

2. Preliminary Results Presentation – September 2004 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 2003, 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. Preliminary Results Presentation – September 2004 David Calverley - Chief Executive Introduction

4. Preliminary Results Presentation – September 2004 Record results driven by operational performance Construction Margins up Quality of order book Housebuilding Expansion plan on track Strong in hand sales Finances strong Good growth opportunities Introduction Overview

5. Preliminary Results Presentation – September 2004 Frank Nelson – Finance Director Financial Review

6. Preliminary Results Presentation – September 2004 Highlights Group turnover up 8% to £687m Profit before tax up 32% to £22.7m Strong cash flow, gearing of 17% Dividend increased 13% to 1.7p Financial Review * Comparison 2002/03 pre exceptionals

7. Preliminary Results Presentation – September 2004 Financial Review Summarised Profit & Loss Account to 30 th June 2004 20032004(£m) Profit before interest (pre exceptional)25.820.4 Turnover (including Joint Ventures) 695.4640.4 Interest charge(3.1)(3.2) Profit before tax (pre exceptional)22.717.2 Exceptional charge-(3.9) Profit before tax (post exceptional)22.713.3 Earnings per share (fully diluted): Pre exceptional6.9p5.4p Post exceptional6.9p4.2p Dividend per share1.7p1.5p Return on shareholders’ funds (pre exceptional)34%31%

8. Preliminary Results Presentation – September 2004 Financial Review Segmental Analysis to 30 th June 2004 2003 2004(£m) Construction512.9480.34.2(0.4) 20032004 Group Turnover (including joint ventures) Profit/(loss) Housebuilding182.0159.5 25.524.1 Group0.50.6(3.9)(3.3) Exceptional charge---(3.9) 695.4640.425.816.5 Less net interest payable(3.1)(3.2) Profit before tax22.713.3

9. Preliminary Results Presentation – September 2004 Financial Review Charge for Pension Deficit As reported(£m) Construction4.22.06.2(0.4) Pre Charge Segmental Profit 20042003 Housebuilding25.50.626.124.1 Group(3.9)0.1(3.8)(3.3) Exceptional charge---(3.9) 25.82.728.516.5 Less net interest payable(3.1)-(3.1)(3.2) Profit before tax22.72.725.413.3 Deficit ChargeAs reported

10. Preliminary Results Presentation – September 2004 Financial Review Balance Sheet Highlights 20032004(£m) Net debt12.317.8 Shareholders’ funds72.359.7 Total capital employed84.677.5 Gearing17%30% Interest cover 8.55.2 * * Post exceptional charge Land122.495.7 Work in Progress53.851.6 Land Creditors(44.7)(25.4)

11. Preliminary Results Presentation – September 2004 Financial Review Cash Flow Summary 20032004(£m) Depreciation and amortisation1.81.9 Group operating profit (post exceptional)24.515.4 Working capital movements(9.2)(10.1) Interest(2.0)(2.5) Tax(5.6)(4.2) Dividends(3.4)(3.3) Net cash flow from operating activities17.17.2 Movement in net debt5.5(4.9) Capital expenditure(1.2)(1.7) Other0.6(0.4)

12. Preliminary Results Presentation – September 2004 Andy Sturgess – Managing Director Construction Business Review

13. Preliminary Results Presentation – September 2004 Construction Business Review Key Highlights Growth in profit continues as planned Improved cash management Success in securing work in chosen markets Improved quality of forward order book

14. Preliminary Results Presentation – September 2004 Construction Business Review Margin Improvement

15. Preliminary Results Presentation – September 2004 Construction Business Review Key Success Factors Collaborative working Life cycle management Design management Risk management Ability to say NO Holyhead Wastewater Treatment Scheme

16. Preliminary Results Presentation – September 2004 Sector Opportunities Infrastructure Health & Education Business Units Commercial Interiors PFI/PPP Telecommunications Affordable Housing Rail Ground Engineering Market Sectors Wolvey WarringtonUxbridge Partnerships Communications Rock & Alluvium Water Growth >10%Growth 5-10%Growth 0-5%Decline 0-5% Construction Business Review

17. Preliminary Results Presentation – September 2004 Construction Business Review Recent Successes Bridge-guard - £50m British Waterways - £24m Northampton Schools, preferred bidder - £150m LIFT Closures - £92m Holyhead - £34m Bedford, successful handover - £20m Swan Housing Framework Samuel Whitbread School

18. Preliminary Results Presentation – September 2004 Construction Business Review Total Work in Hand 32.1 Infrastructure 59.1 55.4 69.3Education 113.3 96.5 73.9Water 146.8 146.8 128.1 Commercial 60.4 29.4 56.4Interiors 29.2 24.3 16.9Health96.691.2 38.2 Telecommunications6.3 6.3 52.1 Affordable Housing 43.5 39.4 32.6 Rail62.462.4 14.8 Ground Engineering3.31.0 Market Sectors Turnover (£m) Year to Jun 04 514.4620.9 552.7 Total Work In Hand Non Price Competitive 89% Work In Hand (£m) Non Price Competitive Total

19. Preliminary Results Presentation – September 2004 Current Opportunities Construction Business Review PFI Ealing, financial close - £20m Caludon Castle School, financial close - £20m Birmingham Schools II, one of two Bromsgrove School, one of three Rochdale, one of three PPP Coventry LIFT, financial close - £42m Building Schools for the Future AMP 4 Water Renewals Wimbledon Roof

20. Preliminary Results Presentation – September 2004 Construction Business Review Current Opportunities EDUCATION - PFI Caludon Castle, Coventry Northampton Schools Ealing Birmingham Schools II Rochdale Bromsgrove HEALTH WATER FRAMEWORK 2004200520062007200820092010 Coventry Barnet, Enfield & Haringey Liverpool & Sefton Welsh Water United Utilities Northumbrian Water Scottish Water 2011 AMP 3AMP 4 AMP 3AMP 4 2012 Q&S 3 AMP 4

21. Preliminary Results Presentation – September 2004 Construction Business Review Summary and Outlook Profit improvement continues Full benefit of recent successes yet to impact profit Continue to win in our chosen sectors Improving quality of order book Confident of 2% margin by 2006 Current strategy/success will enhance profit beyond 2006

22. Preliminary Results Presentation – September 2004 Greg Fitzgerald – Managing Director Housebuilding Business Review

23. Preliminary Results Presentation – September 2004 Housing Highlights Record profits New management team at Stamford performing Cost reductions going to plan Continued good progress with customer satisfaction Land bank increased Strong ‘in hand’ position Housebuilding Business Review

24. Preliminary Results Presentation – September 2004 Strong Regional Brands Housebuilding Business Review 29% £225k asp TURNOVER % - AVERAGE SELLING PRICE 29% - £225,00038% - £278,00033% - £176,000 NEWTON ABBOT UXBRIDGE LEATHERHEAD PETERBOROUGH FAIRFIELD

25. Preliminary Results Presentation – September 2004 2004 Key Statistics Housebuilding Business Review 12 months to June 2003Increase % Units7617412.7 ASP £00022420012.0 Turnover £m182.0159.514.1 Margin %14.015.1(7.3) ROCE %23.623.7(0.4) Sales in hand August 04 £m95.367.142.0 Operating Profit £m25.524.15.8 Income per Sq. Ft. £20917420.1

26. Preliminary Results Presentation – September 2004 Product Mix and Range of Selling Prices Housebuilding Business Review % PRODUCT MIXRANGE OF SELLING PRICES %

27. Preliminary Results Presentation – September 2004 Expertise in Individual Design Housebuilding Building Review Austyns Place, EwellHyperion, Torquay Little Bithywind, BradninchNew Inn Court, East Molesey

28. Preliminary Results Presentation – September 2004 Land Bank – Owned or Under Our Control Housebuilding Business Review 2004 Land Bank August 04 - Units Increase % Detailed Planning Permission174216178 Outline Planning Permission18532578 Awaiting Planning Permission59340646 2003 Total2520205523 Strategic Land August 04 Acres6606128 Probable Unit Numbers2000+2000-

29. Preliminary Results Presentation – September 2004 Market Conditions & Planned Growth Minimal house price inflation Shortage in supply continues to underpin market Strengthen position within existing areas and expansion into new Maximise opportunities within affordable housing market Quality of management Confident of achieving 1250 units by 2007 Housebuilding Business Review

30. Preliminary Results Presentation – September 2004 Housebuilding Business Review Expertise in Conversion and Restoration Coombe Hall Park, East Grinstead Livingstone Park, Epsom Norah Fry, Shepton Mallet Berrybrook Meadow, Berry Pomeroy, Totnes

31. Preliminary Results Presentation – September 2004 Summary and Outlook Expect to achieve half & full year planned performance Detailed planning permission in place Restructuring at Stamford delivering improved results Stringent land buying criteria Enhance efficiency through additional cost reductions Confident of achieving expansion plan Housebuilding Business Review

32. Preliminary Results Presentation – September 2004 David Calverley - Chief Executive Summary and Outlook

33. Preliminary Results Presentation – September 2004 Delivered targets for 2004 Significant opportunities in construction Housebuilding expansion plan positions us well Strong financial platform Quality of management teams throughout business Business in excellent shape for future growth Summary and Outlook Platform for Growth

34. Preliminary Results Presentation – September 2004 Year to 30 th June 2004 Preliminary Results Presentation