1. Interim Results Presentation – February 2009 1 Interim Results Presentation, Half Year to 31 December 2008 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director

2. Interim Results Presentation – February 2009 2 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 2008, 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 – February 2009 3 Agenda Highlights Financial Review Operating Review Key Strengths and Outlook Bermondsey Square, London

4. Interim Results Presentation – February 2009 4 Highlights

5. Interim Results Presentation – February 2009 5 Highlights Operational strengths from hybrid model Record profits and strong cash generation from construction Net cash at period end In compliance with bank covenants Significant cost reductions achieved Construction market more competitive Construction order book 90% public and regulated

6. Interim Results Presentation – February 2009 6 Highlights Difficult housing market £48m housing write down Reduced land bank and number of stock properties Geographic coverage maintained in Housebuilding Excellent relationship with Homes and Communities Agency New divisional management in place

7. Interim Results Presentation – February 2009 7 Highlights Group Structure

8. Interim Results Presentation – February 2009 8 Financial Review

9. Interim Results Presentation – February 2009 9 Financial Review Group revenue £774m, down 14% Profit before tax Pre-exceptional £11.2m profit, down 67% Post-exceptional £37.5m loss Earnings per share Pre-exceptional 2.2p, down 66% Post-exceptional (7.0)p Net cash £2m (Dec 2007: £46m net debt) Interim dividend 0.45p per share Highlights

10. Interim Results Presentation – February 2009 10 Financial Review Financing Total bank facility £432m £300m until 2012 £132m amortising to £90m in 2012 Significant headroom over projected requirements Projections within banking covenants Substantial contract bonding facilities Rigorous working capital management

11. Interim Results Presentation – February 2009 11 Income Statement Financial Review 20082007 £m Revenue773.8897.9 Profit from operations*23.547.2 JV interest and tax(5.3)(3.7) Profit before finance costs, amortisation and exceptionals18.243.5 Intangibles amortisation(1.0) Profit before exceptionals and finance costs17.242.5 Net finance costs(6.0)(8.7) Profit before exceptionals11.233.8 Exceptional items(48.7)- (Loss)/profit before tax(37.5)33.8 * Profit from operations is stated before finance costs, exceptional items, amortisation and share of joint ventures’ interest and tax

12. Interim Results Presentation – February 2009 12 Financial Review Exceptional loss £48.7m exceptional loss taking account of: Sites (including JVs) with negative margins Further deflationary price assumptions Abortive costs relating to conditional contracts Reorganisation costs Land write down equivalent to 14% of land bank

13. Interim Results Presentation – February 2009 13 Segmental Analysis: Profit from Operations Revenue (including JVs) £m Profit/(Loss) £m 200820072008 2007 Building274.6339.26.76.5 Infrastructure265.4250.17.86.2 Construction540.0589.314.512.7 PPP Investments4.92.41.90.4 Affordable Housing & Regeneration99.594.56.75.7 Housebuilding141.7230.03.532.6 Group0.90.2(3.1)(4.2) 787.0916.423.5*47.2* Intangibles amortisation(1.0) Less JV interest and tax(5.3)(3.7) Net interest payable(6.0)(8.7) Profit before exceptionals11.233.8 Exceptional items(48.7)- (Loss)/profit before tax(37.5)33.8 Financial Review *Profit from Operations

14. Interim Results Presentation – February 2009 14 Segmental Analysis: Profit Before Tax Revenue (including JVs) £m Profit/(Loss) £m 200820072008 2007 Building274.6339.29.19.2 Infrastructure265.4250.18.86.8 Construction540.0589.317.916.0 PPP Investments4.92.41.60.1 Affordable Housing & Regeneration99.594.53.03.5 Housebuilding141.7230.0(8.3)16.7 Group0.90.23.32.2 787.0916.417.5*38.5* Intangibles amortisation(1.0) Less JV interest and tax(5.3)(3.7) Profit before exceptionals11.233.8 Exceptional items(48.7)- (Loss)/profit before tax(37.5)33.8 Financial Review *PBT is stated before intangibles amortisation and JV interest and tax

15. Interim Results Presentation – February 2009 15 Finance Costs Financial Review Half year to 31 Dec 2008 Half year to 31 Dec 2007 Year to 30 June 2008 £m Net interest payable0.94.06.3 On unwinding of discount on creditors0.93.14.7 Net return on asset of pension fund0.5(0.4)(0.9) Fair value losses on financial activities – interest rate swaps 3.72.00.7 6.08.710.8

16. Interim Results Presentation – February 2009 16 Balance Sheet Highlights Financial Review Half year to 31 Dec 2008 Half year to 31 Dec 2007 Year to 30 June 2008 Shareholders’ funds £m302.8 *317.1*325.3* Net cash/(debt) £m1.8(45.7)(1.7) Gearingn/a14%0.5% Interest cover - total (inc IFRS and swap)3 x5 x6.6 x - bank19 x10 x8.4 x Land pre June 08 £m292.4 Land post June 08 £m 50.2** Total Land342.6498.2426.5 Work in progress £m146.0180.6183.8 Land creditors £m(33.2)(122.4)(76.5) Net Developments455.4556.4533.8 Deferred payment – Linden Homes & Chartdale £m-(42.9)(0.8) * Includes £6m net pension deficit (Dec 2007: £19m, June 2008: £20m) **Includes land agreed & acquired, replanned, renegotiated

17. Interim Results Presentation – February 2009 17 20082007 £m Operating cash flow12.586.0 Interest, tax and dividends(5.0)(20.9) Net proceeds from issue of shares-0.1 Acquisitions (net of cash acquired)-(6.0) Capital expenditure and investments(6.5)(3.7) Other2.5(2.5) Net cash inflow3.553.0 Opening net debt(1.7)(98.7) Closing net cash/(debt)1.8(45.7) Cash Flow Summary Financial Review

18. Interim Results Presentation – February 2009 18 Actual ytd Dec 2008 £m Estimated H2 2008/9 £m Total 2008/9 £m Estimated 2009/10 £m Payments made to date36.7 Expected payments in respect of existing contracts 14.9 16.4 Forecast payments in respect of uncommitted land 1.4 55.1 Total36.716.353.071.5 Land Payments Profile Financial Review

19. Interim Results Presentation – February 2009 19 Balance Sheet/Debt Profile by Sector – Illustrative Only Financial Review Tangible Net Assets £m Cash/(Debt) £m Accepted Valuation Methodology Construction(60)200P/E Affordable Housing40(40)P/E Investments-(10) Directors’ Valuation Housebuilding and Group (NAV after deduction of debt) 200(210)Discount to NAV 180*(60)** £m * Total net assets per B/S 303 Less intangibles (123) Net tangible assets 180 ** Assume average net debt £60m

20. Interim Results Presentation – February 2009 20 Financial Review Strong focus on business efficiency and cost savings Housebuilding £19m 4 day week 43% head count reduction Office and overhead savings Construction £2.6m Overhead savings Group £3.4m IT and communication costs Corporate and central costs Vehicle fleet expenses National Insurances savings Total targeted annualised savings £25m to meet current market conditions Cost Savings

21. Interim Results Presentation – February 2009 21 Operating Review - Building

22. Interim Results Presentation – February 2009 22 Operating Review - Building Strong trading performance Excellent cash generation Successful completion of Highland & Northampton Schools PFIs Key projects progressing well Market conditions more competitive Easing in supply chain Highlights Museum of Liverpool

23. Interim Results Presentation – February 2009 23 Operating Review - Building Selected for Scottish Health framework Appointed on £103m St Pancras contract 45% of workload secured for next year 80% of order book within public and regulated sectors Highlights Wimbledon

24. Interim Results Presentation – February 2009 24 Forward Order Book: February 2009 Sectors£m Health123 Education129 Prisons155 Commercial112 Interiors17 FM146 Other Public Sector89 771 Operating Review - Building NB - Excludes £200m at preferred bidder stage - Excludes affordable housing contracting

25. Interim Results Presentation – February 2009 25 Operating Review - Infrastructure

26. Interim Results Presentation – February 2009 26 Operating Review - Infrastructure Strong trading performance Excellent cash generation Renewables prospects good Industry leading performance in Water AMP 5 procurement process underway Spen Valley Waste Water Treatment Works, Yorkshire Highlights

27. Interim Results Presentation – February 2009 27 Operating Review - Infrastructure Whitelee Windfarm and A595 successfully completed Good progress at Olympic Park and on M74 52% of workload secured for next year Over 95% of order book within public and regulated sectors A595 Parton to Lillyhall, West Cumbria Highlights

28. Interim Results Presentation – February 2009 28 Operating Review - Infrastructure Forward Order Book: February 2009 Sectors£m Water315* Highways234 Flood Alleviation 98 Rail 5 Waterways 7 Remediation 53 Communications 23 Renewable Energy 34 International 10 Ground Engineering 1 780 * Excludes AMP5 renewals

29. Interim Results Presentation – February 2009 29 Operating Review - Investments

30. Interim Results Presentation – February 2009 30 Operating Review - Investments Investments in projects performing well Bid decisions expected shortly Belmarsh and Maghull prisons Worcester Library & History Centre Moray Schools, Scotland Good pipeline of future projects in longer term Milburn Academy, Inverness Highlights

31. Interim Results Presentation – February 2009 31 Operating Review - Affordable Housing and Regeneration

32. Interim Results Presentation – February 2009 32 Operating Review - Affordable Housing and Regeneration Homes and Communities Agency Excellent relationships with Homes and Communities Agency (HCA) £28m of National Affordable Housing Programme grant £10m (419 plots) HomeBuy Direct awarded Secured first HCA site disposal Highlights

33. Interim Results Presentation – February 2009 33 Operating Review - Affordable Housing and Regeneration TR1, Truro, Cornwall Speculative sales to Registered Social Landlords (RSLs) continuing Re-planning schemes for current market Contracting market subdued Good position to gain accelerated and gap funding from HCA Highlights

34. Interim Results Presentation – February 2009 34 Key Statistics: excluding spec sales to RSLs, including share of joint ventures Operating Review - Affordable Housing and Regeneration 6 months to December 2008 20082007 Increase/ (decrease) % Units Total2922843% - Affordable216248(13)% - Regeneration7636111% Av. Selling Price £000 Total1251186% -Affordable1151132% - Regeneration153183(16)% Revenue £m Total99.594.55% - Affordable24.727.0(9)% - Regeneration11.718.0(35)% - Contracting63.149.528% Profit/loss from Operations before exceptionals £m6.75.717% Margin %6.7%6.0%- In hand position Feb 09 £m - Afford. & Regeneration101.0135.1(26)% - Contracting Order Book156.6153.12% Land bank February 09 units2,7884,100(32)%

35. Interim Results Presentation – February 2009 35 Operating Review - Housebuilding

36. Interim Results Presentation – February 2009 36 Market Conditions Banstead Wood, Surrey Operating Review - Housebuilding Difficult market conditions Consumer confidence and mortgage availability key constraints No new build premium House price deflation from peak to trough of circa 25% Sub-contract cost reductions from peak to trough circa 12% Significant reduction in land prices Cancellation rates stabilised

37. Interim Results Presentation – February 2009 37 Operating Review - Housebuilding Whittington’s Meadow, Nassington, Northants Aggressive sales policy maintained 43% reduction in head count Successful implementation of 4 day working week Geographical coverage maintained Land spend and work in progress strictly controlled. Highlights

38. Interim Results Presentation – February 2009 38 Market Quarter, Chippenham, Wiltshire Operating Review - Housebuilding Renegotiations of major land acquisitions and existing planning approvals ongoing Industry leading customer satisfaction maintained Part exchange and stock levels at historically low levels Highlights

39. Interim Results Presentation – February 2009 39 Operating Review - Housebuilding Key Statistics: including share of joint ventures 6 months to December 2008 20082007 Increase/ (Decrease) % Units671890(25)% Average Selling Price £000201231(13)% Income per sq. ft £219259(15)% Revenue £m141.7230.0(38)% Profit from operations £m3.532.6(89)% Margin %2.5%14.2%- ROCE % *4%18%- In hand position February 09 £m205415(51)% Land bank February 09 units4,8407,000(31)% Strategic land February 09 acres1,3131,512(13)% *Includes private housing, S106 and regeneration (excluding contracting)

40. Interim Results Presentation – February 2009 40 Market Outlook Operating Review - Housebuilding Continue to reduce exposure to the apartment market Strong cash management being maintained Prudent land procurement policy to continue Well positioned to take advantage of opportunities Evidence of investors returning to the market Encouraging start to 2009 Watercolour, Redhill, Surrey

41. Interim Results Presentation – February 2009 41 Key Strengths and Outlook

42. Interim Results Presentation – February 2009 42 Key Strengths and Outlook £432m banking facility negotiated in early 2007 - runs to 2012 Continue to work within bank covenants Low levels of debt with ability to gear up Interim dividend declared Construction 90% in public and regulated sector Industry leader in water Upper quartile cash generation

43. Interim Results Presentation – February 2009 43 Key Strengths and Outlook Housebuilding Maintained geographic coverage with southern bias Low levels of stock Leader in affordable housing Greater revenues from lower land bank than key competitors Well placed to take advantage of opportunities Experienced management team

44. Interim Results Presentation – February 2009 44 Interim Results Presentation, Half Year to 31 December 2008 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director