Good morning, everybody. Judging by the size of the audience, it looks as if you all delayed your summer holiday just to see these results. I'm Leo Quinn, Balfour Beatty's Chief Executive. I'm joined by Philip Harrison, our Chief Financial Officer. We're gonna give you an update on the half year performance. First and foremost, a strong first half, the progress that's been made is in the areas that you'd like to see it made. You know, earnings are up some 12% overall, but if you dig below, you'll see the UK earnings business is up some 60%. Hong Kong is up 40%. Very encouraging. Cash continues to be strong at just around GBP 700 million. If you actually add back the share buyback, which is just under GBP 100 million, it's almost flat with last year. Again, a strong, encouraging first half. The most important thing about the business at the moment is just where we're positioned for future growth, and to my mind, it's never really been as encouraging or optimistic. Our growth is driven by things like sustainability, net zero carbon and the likes of that. It doesn't matter whether you look at the demand side or supply side, we're very, very well positioned. What I mean by that, if you think about the supply side, whether it's offshore wind farms, whether it's nuclear power station, all forms of clean energy, we're actually a major player in that, and that's a rising tide for which we'll benefit from enormously. Finally, in terms of delivering to shareholders, it is interesting, we announced our capital allocation model some three years ago, and in that period of time, we've returned some GBP 600 million in terms of cash and share buyback, which is a third of our market cap. So, very encouraging in terms of the earnings-based businesses are doing well. The market in which we sell is actually growing, and the return to shareholders is substantial, and we sort of see future returns to shareholders as well. I want to point out here what effectively is some of our critical national infrastructure projects. These are very, very important because our fortunes do rise and fall on how we execute on these contracts. It always helps to start with a good contract, make no mistakes, 'cause, they always come into play. If I take you around these, you know, the top left-hand picture that you see is actually, a National Grid job, where we're doing the power transmission and underground cables from Hinkley power stations through to the grid. This job has been successfully completed. It was a fixed price lump sum. Reason this is important is as we go forward, and we see a growing energy market and energy security market, the nature of these contracts is going to change under the ASTI framework, where we'll have inflation protection and a two-step process. You can see that in the future, we'll be de-risking these jobs, which actually will bode well for margin returns. On the top right, what we have here is this is Old Oak Common, and we are going to do a showcase at some point in terms of Old Oak Common. This is in London, in the Acton area. And what you're seeing here is actually the, the box section that's being built. You can see the size and scale just by judging the 2 engineers that are in the, the base. This will constitute some 6 platforms for the new HS2 rail, rail line, and that will connect with the Elizabeth line and the Great Western Railway, another 8 platforms. This will be a huge station. It's actually the largest station under construction ever in the United Kingdom. Very exciting projects, and it's where HS2 will currently terminate for, for London. The other end of the line, which is actually Curzon Street, which is actually in Birmingham. If you take the train into Birmingham New Street, the last three minutes of your journey will actually see this project unfold. There's three major structures in this area. What you're seeing here is actually, this is the Y-shaped piers and the bridge deck, which will be cast in the next week or two. And you can see this unfolding before your eyes. It's an incredible project. It's incredible for one reason. I started my career building a bridge in Balfour Beatty some 40-odd years ago. That single bridge is a major project. There's three of those going on all in the same area. It's all governed under one project office. It's a very lean operation. It's very, very impressive. Finally, if I look at Hong Kong to prove the international capability that we have, this is the T2 airport, and this is one of the roof structures. This is approximately 70 by about 36 meters, and it's actually being assembled on the ground and then jacked up into position. These major projects, this is what we do. This is our unique capability. It's not just about the engineering, it's about the contract and the commercial terms to manage this. We forecast at this moment in time that we're on for our full-year earnings around these projects. What I'm gonna do is I'm gonna hand over to Phil, who will treat you to some facts, and then I'll come back and treat you to the future. Thanks, Leo. I can. Good morning, everyone. Let's start with the headline numbers. Revenue grew by 9% in the first half to GBP 4.5 billion, which was a 6% increase when excluding foreign exchange movements. Profit from the earnings-based businesses increased 12%, with strong profit growth in UK construction. However, group profit from operations reduced by 6%, with lower profits from the investments business, partially due to the timing of disposals. The benefit to the group's net finance income of higher interest rates was offset by a higher tax charge, as there was no additional deferred tax assets for UK tax losses recognized. When taken together, this resulted in an 8% decrease in profit for the period. However, earnings per share increased slightly to 13 pence, as the group's share buybacks took effect. Our GBP 16.4 billion order book has reduced by 6% in the period, or 3% when excluding foreign exchange movements. The directors' valuation of the infrastructure portfolio remained at GBP 1.3 billion. Cash outflowed as forecast, with period and net cash of GBP 710 million, an average net cash of GBP 695 million. In line with the policy for the interim dividend to be roughly one-third of the prior year's total dividend, the board today is announcing an interim dividend per share of 3.5 pence. Looking forward to year-end, we remain on track to deliver full year earnings expectations. Moving on to the business units, let's start with construction services. Profit from operations increased by 33% to GBP 65 million, driven by UK construction and Gammon. In the UK, revenue grew. Revenue growth of 23% was driven by increased HS2 volumes, which alongside improved delivery across the portfolio, took the profit margin to 2%, compared to 1.5% a year ago. As a result, profit increased by 67% to GBP 30 million. Touching on HS2, earlier this year, we were asked by the client to rephase work on our Area North contract. Having now worked through the change order and rebalanced the workload, the adjustments have had no materially impact on our forecasts. We expect UK construction to deliver ahead of the 2.1% profit margin achieved in 2022. Looking beyond the U.K., U.S. construction delivered GBP 21 million of profit, which was in line with the first half of 2022. Gammon grew revenue and profit by around 40%, driven by the major Hong Kong Airport projects. The construction services order book reduced by 8% in the first half, or 5% at constant exchange rates. In the U.K. and Gammon, the increases in activity at HS2 and Hong Kong Airport, which have driven the revenue upwards, have in turn reduced the order book. In the U.S., we continued to see delays in commercial office projects going to contract, particularly in Texas, as customers waited for more positive economic news. With U.S. inflation reducing to around 3%, we have started to see some early signs of awarded work progressing to contract. We've also had some further U.S. awards in the first half, which are yet to go to contract, including a $650 million project at Raleigh-Durham Airport in North Carolina, where the contract awards will come in stages, phased over the multi-year project. I'll touch quickly on our GBP 5.9 billion U.K. construction order book, as its contract mix is a great indicator of the changes which the business has seen. Not only does the volume of future orders provide visibility for the short and medium term, but the weighting of orders by contract type also reflects the improved risk profile. 84% of the order book is covered by target cost and cost-plus contracts, which protect the group from inflation risk, and the majority of the fixed price work is priced over 2 stages, allowing for the additional risk mitigation. We also continue to work almost exclusively with public and regulated clients, which reduces risk further. We will continue to favor those projects with lower risk contract terms that provide stability and predictability to the group. Moving on to the support services business, which comprises our power, road, and rail maintenance businesses. Revenue reduced by 7% in the first half, driven by the timing of power projects. Support services PFO reduced by GBP 6 million to GBP 30 million, due largely to the lower revenue in power and higher costs in the road maintenance business, where 2 new long-term contracts were launched. As we bring the new contracts onto our systems and align them to our ways of working, additional costs are required up front, but this is built into our expectations when planning the projects. With these two new contracts now in place, revenue from the road maintenance business is expected to be higher going forward. Looking towards the second half, we continue to expect the full year PFO margin to be towards the top end of our 6%-8% targeted range, with all three businesses performing well. In the medium term, the power business is poised to see significant growth as the industry responds to the government's need to invest heavily in the grid. Last week, we were appointed to SSE's GBP 10 billion ASTI framework, and we're also bidding on National Grid's equivalent Great Grid Upgrade framework, with project delivery expected to begin in 2025. Moving to the infrastructure investments. In our infrastructure investment business, our pre-tax profit has reduced from GBP 24 million to GBP 14 million due to two main factors. We made no disposals in the period compared to GBP 7 million last year. By its nature, disposals are lumpy, and we continue to target gains on investment disposals in the range of GBP 15 million-GBP 30 million for 2023. In the U.S., there's been an increase in military housing costs relating to the independent compliance, compliance Monitor's first year of work. Within the pre-tax profit, there's also an offset between operating profit and interest receivable of GBP 3 million, driven by higher interest rates on the subordinated debt provided by the group to some joint ventures. It is important to note that this does not impact the cash distributions received by the group, but does require the returns to be presented differently in the accounts. Looking to the second half and our planned disposals, we are currently engaged in marketing a number of assets which we plan to close out by year-end. We will continue to be disciplined in our approach, and our priority remains focused on maximizing value. Let me take you through our valuation of the portfolio now. As a reminder, at year-end, we had our valuation independently verified by a third-party expert, and the methodology used for the half year valuation has not been changed. During the first half of 2023, we have invested GBP 24 million in new and existing projects, including the addition of one student accommodation project in Florida. We expect to make further investments in the second half as we continue to see opportunities to invest at our target return rates. During the period, we received GBP 33 million of distributions from the projects, and the function of reducing the discount by 6 months increased the valuation by GBP 42 million. Foreign exchange rate changes have had a negative impact. 58% of our portfolio's value was in North American investments, and the weakening of the dollar has driven a GBP 39 million decrease. Finally, operational performance has reduced the valuation by GBP 16 million, as higher U.S. insurance premiums and an increase to our estimates of costs related to the monitor's work were reflected in the period. These costs were partly partially offset by U.K. student accommodation rent increases. This has resulted in the valuation reducing marginally, but still remaining around GBP 1.3 billion. Our cash flow performance in the period has been in line with our expectations, with the closing balance reducing by about GBP 100 million. Operating cash flow remained strong and was marginally higher than the prior year, and the two largest outflows, being working capital and the share buyback program, were both flagged at year-end. We are expecting a further working capital unwind in the second half and continue to expect the full year unwind to be between GBP 75 million-GBP 125 million. We've also given guidance today for 2023 average net cash, which we expect to be in the range of GBP 650 million-GBP 700 million. One other item worth noting is the pension deficit payments of GBP 13 million, which have come down from GBP 29 million following an agreement with the trustees of our largest pension fund earlier in the year. The contributions are expected to remain at this lower level in the medium term and for self-sufficiency to be reached in 2027. I'll finish with our capital allocation framework. We are continuing to invest in organic growth opportunities with not only further additions to our investment portfolio, but also by investing in capability across the earnings-based businesses, which Leo will talk to shortly. We also expect to realize value from the investments portfolio, as mentioned, we're planning for disposals in the second half of 2023. We have taken active steps in the first half to further strengthen our balance sheet and have refinanced our revolving credit facility by replacing the old GBP 375 million facility, which was due to expire next year, with a new GBP 475 million facility, which runs to 2027, with a further one-year extension option. The board has declared an interim dividend of 3.5 pence per share, which is aligned to the policy of being roughly one third of the prior year's full dividend. Finally, we're on track to finish 2023's GBP 150 million share buyback program in the fourth quarter of the year and continue to expect the capital allocation framework to be in place for years to come. With that, I'll hand you back to Leo. Thanks. Thank you. I'll start here, but I'll just reflect on something that Phil said. When you think about the capital allocation model, you know, our number one priority for cash is to invest back in the existing business. Given the rising tide and the size of the opportunity, now is an ideal time to be investing in selling expense to cope with the demand for bids that is coming out in the marketplace. We'll see that investment in selling actually increasing. If I point you towards the Slide, on the left-hand side, I showed you this Slide last time, and it's worth just going around it to understand, as I said last time, we're sort of like the Intel inside. We're the enabler that makes a lot of these things possible. Working all the way from submersible, semi-submersible platforms, with the likes of Arcadis, in terms of the future of offshore wind farms, we're one of the largest supplier of pylons and transmission cables for the grid, to help de-risk the grid. Small modular reactors, we're looking to play with Holtec, but there's an awful lot of players coming out in the market, and it's all quite an interesting space. Whether it be fusion or conventional energy, nuclear energy, the likes of Hinkley, we see growth with Sizewell, so again, exciting in that area. We made a small investment in terms of EV charging to capitalize on the demand in that market, and we're in active FEED studies and the like around carbon capture and hydrogen. The space is actually very, very exciting. Since we spoke about this, six months ago, what we've seen is that the what I would call the mobilization risk, in terms of these are such big markets and such big opportunities, it's too expensive for, for any one company to go in on their own. What the government's doing is it's launching the ASTI framework, which is about de-risking the grid. It's looking at carbon capture, and it's looking at small nuclear reactors, and it's actually putting up a sum of money to enable these things to happen. We, at this moment in time, are working on FEED studies and enabling work to make these real. We're actively engaged in actually setting the stage and the foundation to make these things possible. It is very exciting, and I'll touch on it in the next few Slides. This is a growth market for which we are uniquely positioned to actually capitalize on it. In our support services business, which also feeds into the same market, in our power T&D, we're off to a very good start. I'd point you again to SSE's ASTI framework. That's already been put out in bid. National Grid will probably make some decisions around the first quarter of next year. I would anticipate between 25 and 30, and maybe even towards the end of 2024, that there'll be an additional GBP 2 billion-3 billion worth of business over that 5-year period, which is substantial growth. In terms of that power T&D, you're looking to the upper end of doubling that business by 2027, 2028. In terms of road and road maintenance, again, a nice business that we seem to manage very successfully. We won two contracts in the first half of the year with East Sussex and Buckinghamshire, and we're mobilizing those. We're targeting one more local authority next year. Again, what we're seeing is good double-digit returns, and we're seeing good growth in that area. In terms of the rail, the CRSA contract is performing very well. Also, the London Underground, in terms of the upgrade of the Piccadilly line with our power traction, is doing well. We see growth coming in the areas of the Midland Main Line, electrification, but also there's the track slab from HS2. Again, in line of investing, all of these take substantial resources in actually in investing. The challenge at the moment is, it's like London buses, there's 3 of them coming at one, and we've got to work, work out how we handle that, that peak loading. The stuff we do here is very traditional. You know, we, we put cables across the Highlands, you know, we, we operate central monitoring stations for road maintenance, and we actually repair railways. This is the, the Nuneaton repair, where the line was shut for 10 weeks. We put a small team in there and actually restored the bridge, the foundations, at record time and released it back to the client early. I want to point, this out in light of the Slide I showed you with the pictures of what we're doing. What's interesting in that first Slide was, if you look at the transmission job, which is on the top left, the old framework was fixed price lump sum. If I look at the HS2, those particular contracts were de-risked for inflation, and they were an incentivized cost plus an incentivized fee. What we're looking to do is move all of these frameworks into areas whereby the inflation risk is not ours, it stays with the customer, which is, which is fair, because that's actually where the returns are ultimately, and that we understand how we've de-risked the contract in order to make sure that that de-risking improves margins. In the case of cabling here, we've talked about the ASTI framework and the size and scale of this opportunity, but what you see is the pylon and the wiring. What you don't see is what we do underneath it. We have specialist design capability. We actually do the piling, we do the pile cap, we put the roads in in order to reach these items. The way this will be contracted and bid will be a two-step process. Effectively, we will put our team together with the client's team. We'll look at the DCOs, we'll look at the engineering, and then we'll look at the actual execution of the job. Then when that phase one is done, we'll then decide on what basis we perform through to the final contract. That's two-stage distribution is most of the risk will be designed out in phase one before we actually enter a final contract in phase two. Substantially different to where we are today. If I look at nuclear power stations, the important thing about Sizewell is Sizewell is the intelligent replication of Hinkley. The lessons to be learned from Hinkley will be transferred here. We carried out all the marine works in the tunnels, and we'll be doing the same here. We're looking to add the enabling works and the earthworks. Just as a matter of interest, the, the earthworks here on Sizewell are substantial, but they're about 20% of the earthworks that we've done on N1, N2, on HS2. You can see we're uniquely qualified to do that. In the enabling works, we'll be doing things around the pre-construction design. We'll be looking at the, the ground engineering. The biggest piece of it will actually be the diaphragm wall, which actually will surround the whole site. Interestingly enough, the last time we built a diaphragm wall at, at Sizewell was Sizewell B, 40 years ago. We're redoing what we actually did for, like Sizewell B for Sizewell C. Again, this unique capability underneath all gets applied to the success. Why is this important? Because ultimately, it gives the client better assurance. It comes with our safety standards, it comes with our quality workmanship. What you see in, for example, in the power business is, is this element delivered here. What you don't see is how all this is delivered across our other businesses, including our plant and fleet. This is a, a substantial opportunity, but it's also substantially de-risked in the way the order book has been managed in the past. Yeah, very, very exciting. In the United States, really not much different from what I reported, six months ago. Two challenging areas. We've got the, the Northwest, which is funded really by the tech sector, the Facebooks, the Amazon, the Microsoft, and the likes of that. We've seen that market slowing. In Texas, which is largely a developer, market influenced by interest rates, we've seen that slow. Interestingly, in Texas, is that the work is piling up. You know, we've got our largest order book of award has been not contracted. The challenge is, until the developers get certainty, they won't move it into contract, so we've got a lot of pent-up demand here. What we are seeing is still strong growth in California in schools. The federal market in Washington, D.C., is going well. Of course, in Florida, with Mickey Mouse and Universal, we've got great growth in hotels, leisure, and the likes of that, so exciting. We're not standing around waiting for growth to actually happen. We are investing. What we've done is we've invested in Jacksonville and Sacramento as two new branches. As you know, our business is a local business because it's a local supply chain when you're in building and construction. Under that scenario, we're seeing really good activity in both of those, in particular, Sacramento. Our smaller branches, we're actually doubling down and investing in the Raleighs, the Austins, and the Phoenix in order to grow those, and that's on top of the base business that you've seen. We see 2024, 2025, seeing some really good growth in revenue in those new areas. Also, we're focusing on the airport market. We just bought, won a contract in Sacramento for effectively bridge connectors, which is something we took from the LAX. We just won another contract in Raleigh, and we won in Jacksonville. Those three are just under $1 billion, and they'll be delivered over the next 2 years or so. Again, a lot going on there. Finally, in terms of the infrastructure and the civil market, there is growth in that market. Of course, there's the Biden Inflation Reduction Act, but the US market is still fixed price lump sum, so the risk actually sits largely with us. Until that matures in line with what we see in the UK, we're just going to be more cautious in terms of the large projects that we endeavor to take on in that area. Again, US is a, is a solid performer, just waiting for the dam to break so that we can be more optimistic about the outlook for next year and the year after. In the case of Gammon, which is our joint venture with Jardine Matheson, in their market, they are a substantial player, very high profile, very, very strong brand, very good business. It almost replicates what we do in the UK in terms of capability. All those things around piling, concrete delivery, design, temporary works, all of this goes on in Gammon, and it is a GBP 2 billion business, so it's not far off the size of the UK business, about half. Basically, this is a very, very strong market. It's centrally planned, and, you know, since the change of, or the formalization of government, what we've actually seen is that the market's moved forward very, very positively. Historically, we've seen a very strong building market and residential. With interest rates higher, we've now seen that starting to fall off. Infrastructure is beefing up, and again, substantially in terms of they're building the infrastructure, which is supporting the focus markets around the region of tech, IT, data centers, R&D centers, and a lot of this is going to be supported by the rollout of 5 MTR new stations and the rail tracks associated with them. We've just bid 1 station with MTR, and that would be circa GBP 1 billion. When that's completed, it will come with the deck platform, then what they'll do is they'll build out commercially on top of that, commercial and residential. You can see by actually putting the station in, it positions you well for the next phase of building on top of that. We're seeing, again, strong growth with MTR. All the customers we deal with in this region, they're long-established relationships. And that's important because when things go wrong, we know how they behave and how they respond. MTR has been a customer for a very, very long time, as have many of our buildings customers. We're very selective in what we're bidding. There's not any growth, by the way, in Hong Kong and that around there. There is the Northern Metropolis, which we've talked about before. There is the Macau casinos, which are growing as well. This is a vibrant market. We're only constrained, not by opportunity, but actually by capability and people that we can hire. Interestingly enough, the government in Hong Kong recently have just changed the rules around bringing in expert labor, which is gonna relieve the pressure on, on headcount and capability, which actually will help spur growth in the future. If I look at our investment business, Phil has talked to this ad nauseam. Second half, we're looking at the divestments in that business. As we've always said, if we're not getting the right return on those investments, we're not out to rush out and sell them for the sake of selling, because these are actually performing yielding assets. It really is a question around: do we just want to keep the yield, or do we actually want to take the capital gain? We continue to make investments. As you know, we invested in EV charging, a company which we named Urban Fox. That was a small investment, the premise of the strategy was around we have good relationship with local authorities, there's really good demand for EV charging at the moment, and it's not outside London, the satisfaction levels are really low. We're quite optimistic about that as a long-term play. We've invested GBP 24 million in assets. The largest was Tallahassee, Florida, which was a student accommodation. We also completed the build of the Vanderbilt student accommodation in Nashville, we also won the William & Mary College in Virginia. Again, there's a lot of stuff going along under the surface here. We're really committed to student accommodation in the UK and the US. We've got 2 major projects in the U.K., which we're trying to get to close in the second half of the year. U.S. multifamily housing, we continue to invest in that. P3 is the biggest opportunity here. As you remember, the L.A.X. People Mover, which is this P3 here, is a P3 valued about GBP 2.6 billion, and we're looking to capitalize on that. T he next bid we'll be doing is the Prince George's County Schools in Washington, D.C. That, again, is the biggest opportunity that we've got on the plate at the moment. The unfortunate thing about P3 is it just seems to take years to get these things to fruition, so there's a heavy upfront investment before you get the returns. Of course, you know, we're, we're looking to actively play in the UK energy transition market. If I look at building new futures, nothing new here in terms of carbon, materials, and communities, in that we've maintained our 2030 strategy and targets. We've made fantastic progress under the leadership for sustainability. We've completed our work on the pathway to decarbonizing for Scopes one, two, and three. We'll be submitting in the second half of the year to the body of the Science Based Targets in order to ensure that we don't exceed the 1.5 degrees temperature rise globally. We're confident of this going through very well. It is interesting, between Scopes one and two, which is what we do internally around carbon and energy, versus Scope 3. Scopes one and two actually only equal 3% of our overall carbon footprint. You can see that it means we've got an awful lot to do with the supply chain to represent the other 97%. Although we've made great inroads in terms of reducing idling, changing out diesel to electric, and the likes of that, it's still a sort of just a small microcosm on the scale. Areas where we've made great progress is, and this, the area I'm focused on the most, is really around how do we drive more social value? 'Cause we have the ability to put things back into communities in order to make communities better places. We spent GBP 125 million in locally generated economic value by placing work with local suppliers. We've trained over 2,000 days of training for people coming into the business. Interestingly enough, on this one here, we've trained or taken over, taken out over 300 people who were long-term unemployed and put them into jobs. We're giving people what are the basic skills to make them productive members of the community. I think, you know, the social benefit that comes from what we do just in our day-to-day business is fantastic. This is 1 job. We have 600 other jobs, and across the group, we're, we're trying to do these things all the time. Of course, we still run The 5% Club, which is around getting young people, whether apprentices or graduates, into the workplace early and giving them the skills for life. Finally, we're on track for the full year. We're positioned really well to capitalize on growth, whether on the demand side or the supply side. You know, over the last three years, we've delivered GBP 600 million return to shareholders. We're confident about future returns. Business is in good shape for the full year, and we're confident that we'll deliver on expectations. Great, great, great future for the, for the growth in this business. On that, I'll hand back to Phil for all the questions.. Thank you very much for the presentation. I'm Arnaud Lehmann from Bank of America. I have two questions related to the US, please. Firstly, we have seen some companies, more in the building products world, relisting in the US and saying there was an advantage of being a US-listed company with a US head office to operate in the country because, you know, the US is, America is buying America. Have you felt in the private or the public sectors, that being a British company listed here was ever a problem when you bid for contracts relative to the locals, and is it something that is there a way to address it? My second question on the US... is your positioning. I think you're positioned more in the commercial sector, which is suffering a little bit at the moment. There are more opportunities coming up in the infrastructure space. You mentioned that there was more lump sum fixed contract, so that was probably a bit more risky on your side. When do you expect that to evolve, if ever? How easy would it be for Balfour Beatty to progressively transition from the private sector to the public sector in the U.S.? Thank you. Okay. On the, on the British element, and even on the question of relisting, I mean, everything goes through phases. I can remember, what, 20 years ago, people talking about the capital asset, capital, Capital Asset Pricing Model, and you've got too much cash on your balance sheet, and you should give it back to the shareholders. Of course, the answer is, you know, if, if you don't like the way we run the balance sheet, you can always put your money elsewhere. I think it's quite important is that, you know, markets go up and down. At the moment, there might be it might be vogue to want to list things in the U.S., but I'm sure the U.K. market will come back. When we see a bit of growth in the UK market, which is probably predicted in the next couple of years, I think everybody will be rushing back here. We're very comfortable with where we're, we're listed, and we don't necessarily see the opportunistic move to the US as something we're gonna waste time on. You can contradict me, by the way. In terms of being a British supplier to the US, I think we're treated fairly. You know, at the end of the day, it's about capability. If you can deliver some of these residential, commercial theme parks, like we delivered Avatar, you know, these aren't just things you sort of buy off the shelves. There's a real capability there. I think we, people buy on capability, that's what we bring to the, to the party, and we're long established in all the areas that we're in. In terms of the, the positioning, we're, we're really clear about the fact that, you know, we're in business to sort of make returns and, and de-risk the portfolio. I'm happy to have a business which is half the size and double the profit, because it's, it's about returns, it's not about being busy fools. The commercial market in the U.S. is challenging in terms of the infrastructure commercial market. Where we do well is roads in Texas, roads in the Carolinas, and things like that. You know, we've, we've done well in California, in the LAX people mover and things like that. These are challenges, and if you're being awarded large jobs of $1 billion on a fixed-price lump sum basis, you've got to be really, really careful. We'd rather sort of stay, keep a presence in the market, and wait for the market to sort of normalize it terms whereby when people don't bid at stupid prices, then all of a sudden, the developer or the client has to go back and rethink how they come to market. We're seeing that in the UK, you know, in one region in the UK, I won't name, north of Hadrian's Wall, but we were looking at roads in that area, and we just refused to bid because the commercial arrangements were just unsatisfactory. They've now come back and said: Look, well, okay, well, on what basis will you bid? If you don't have anybody tendering, you, you can't get the work done, and, you know, those authorities have to get the work done. Do you want to add anything? The only thing is we probably wouldn't get the quality of research in the U.S. Fair point. Thank you. That's a good answer for you. Thanks. Jonny Coo-bra at Numis. 3 questions from me, please. Firstly, on support services, how quickly can you scale the business, and what's the lead time on adding capability there? Secondly, within UK highways, and the delays in the market, is there any impact from that on maintenance contracts? Also, could your share of the A66 grow? Then thirdly, on US construction, and in terms of the contracting model, I'd be interested in your thoughts on how that's fared through the emergence or re-emergence of inflation post-COVID. I.e., have subcontractors been caught out by the re-emergence of inflation, and do they now want- Yeah ... more continuities in contracts? Yeah, the on the power business, let's just understand the process. Basically, your bidding is 6-9 months in terms of the framework into how you play in it. SSE have completed theirs, National Grid is in process. Once you've done that, there's with DCOs, which are consent orders, as to how you will deliver things on the ground, your environmental and all of these items, planning and the likes. That effectively is almost, at least it's a 2-year design process. Now, the government is actively consulting at this moment in time, and how do they reduce that? 'Cause everybody complains about the cost of projects rising, but the primary reason for them rising is we don't have environmental consents, we don't have planning consents, and, and even when there's, there's a judicial hearing that says, you know, "You can go ahead and do the work," the local authority still has the final say. The government's consulting on this: How do we reduce the timeline? If we can reduce that timeline to 1 year rather than 2 years, we'll be putting shovels in the ground, you know, in the middle of 2024. We're engaged now with SSE in putting our teams together to do the consenting and to do the design, and then you've got sort of like a 3-year construction period. There's, there's a bit of a movable feast. The way we think about it at the moment is around 2 years for design and consents and then 3 years to build. There is some seasonality in those businesses, by the way. Your second question around U.K. highways maintenance. The U.K. roads, unfortunately, at the moment, with potholes and the likes of that, are a bit of a disaster, so I don't see any drawing back from that. It's, it's not something that we can actually do. On the A66, you know, when the project is given the go-ahead, it's highly likely that our, that our share will increase. But, you know, at the moment, we're still waiting for the actual notice to proceed. In terms of highways, there's a, there's a 6 highways out there at the moment, which, you know, we're, we're very interested in. In terms of the portfolio, if you look at where government money is going, obviously, they don't have an endless pool of it. I think in the medium to long term, you'll see highways start to reduce, but it'll be pumped into other areas. Finally, in terms of U.S. construction, emergence of inflation, I'll do this one just to be quick. The majority of our business, i.e., GBP 4 billion out of GBP 5 billion, is buildings. The contract process is that we put together the cost, and then, for example, we'll put a 4% fee on that, 2% plus will be overhead, and then the remainder will be profit. That contract is then built out with all of the subcontractors offering their formula at fixed price lump sum. They take the inflation risk, and underneath that, they then ensure that either with a bond or some Subguard, that they can deliver that, and basically, their, their house is on the line, around that, quite penal if they get it wrong. Fundamentally, that risk is passed down to the supply chain in the case of U.S. buildings, and it's quite important to remember that. It's a lower return model, but it's actually a lower risk model. Do you wanna add anything to that, or? The only thing I would say is that, if you look year on year, I, I think the, you know, the supply market is tighter. Subcontractors are under a bit of pressure because of this inflation impact. We clearly look at the quality of our subcontractors, keep a very close eye on it. We've not seen a huge amount of contractors going bust at this point, but clearly, it's something that we keep an eye on. Yeah, it's not, it's not in our interest to allow any subcontractor to fail. On the same basis as we'll work with our customers, you know, if there's an inflation risk, which wasn't anticipated in the initial contract, which was struck four or five years ago, you know, we will go back and, and work with the customer to see how can we mitigate that in the same way we'll work with our supply chain to try and do the same. You know, the disruption that's caused by a, by a bankruptcy, it goes far beyond just the cost of fixing a, a supplier. Yeah. Good morning. Joe Brent from Liberum. Three questions, if I may? Firstly, on the U.S. margin, I take the point, it's low risk, low return, but having delivered 1.2% both halves, could you give us some indication of where you think that should settle? Secondly, if memory serves, at the full year, you talked about the risks around perhaps Chinese capital controls, and no one knows where those relationships go, but clearly, you've got a lot of capital tied up in Gammon. Is there any way you can de-risk that? Thirdly, I think this one's for Phil. The working capital absorption is around 15%, stable at the year-end level, minus 15%, and you've grown sales. Why are we not seeing a working capital inflow rather than outflow in the first half? I think we'll give Phil the first two, and I'll do the third one, shall we? Do you wanna, do you wanna try that, the second-half expectations for buildings in the U.S., 1.2% to... Well, we are anticipating that margin will increase into the second half. It usually, it usually does. However, the U.S., at this point, probably from a revenue point of view, we think is gonna be relatively flat. We'll see. We will see some margin growth. We're still committed to our 1%-2% range, so that's still our key focus to drive that margin up. Clearly, we're in a place where we will make very small increases in that, you know, tens of%. In terms of China, it's a good question. I think our asset, I kept from memory, I looked at this six months ago or so, but our asset base is about GBP 70 million. It's not, it's not a lot. Although we hold a higher amount of cash, but that's part of the rules of Hong Kong. You actually have to have a certain cover, don't you, for, to do business there, which is actually quite clever, which means you can't suck out all of the cash and have it run on negative working capital. Do you just wanna... Is there any more on that? Well, at that, look, the precautions we take in, on Gammon, we distribute all of the, all of the profits annually from Gammon. We don't leave anything that's that we don't that isn't required to run that business. We don't, we don't guarantee anything in terms of guarantees from group levels on anything, so clearly, it's a very standalone business, and therefore operates its own its own kind of banking banking. It doesn't call upon our, our kind of group, group balance sheet. I think we've, we've always taken a, a view that, I think at the moment, we run a quite a thin, thin cap there. I think, it's probably in our books at about GBP 75 million, I think. Yeah. The, the key here is to extract, extract our earnings out on an annual basis. ... Yeah, I think what Phil's made the key point is, it is a totally separate, independent balance sheet. Unlike when we, we had the Middle East, the Middle East leveraged our balance sheet, which was one of the reasons why we divested of it. Hong Kong is not in that position. In terms of your working capital question, Phil would be upset if I answered it, so I'm gonna let him answer. No, no, you have a go. It's really around the project mix, and as we've said, the U.S., U.S., where we have some very big mobilization payments, we had a couple of years ago on, on actually major, a major set of roads and on our P3s, we've seen that now starting to unwind. In the U.K., the U.K. is more balanced to project bank accounts, so we don't see as much working cap benefit in the U.K. versus the U.S. It's that dynamic that's playing out there. Couldn't have answered it better. Good morning, Andrew Nussey from Peel Hunt. A couple of questions from me. First of all, in UK construction, I think, Phil, you said the key driver to the revenue growth was the ramping up of HS2. With the rephasing of that project, is revenue growth gonna be harder to achieve in UK construction over the next couple of years, or have we reached a sort of a normalized sort of run rate? Secondly, in terms of the US investments and the monitor, what are they actually monitoring? Are they providing any observations to you which have relevance to the broader military portfolio and actually US multifamily housing in general? Thank you. Over to you. Oh, right. HS2, look, we've, we completed our analysis of that. We don't see it as a, in our forecast, a 2023 or 2024 issue. I think the issue becomes these deferrals and delays. As I think, people do understand, that usually costs more ultimately in a construction world. One could anticipate that maybe revenues will, will tick up past that period as we have to finish the job. That's HS2. On the monitor, monitor has wide-ranging access to the whole of the military housing business. They're looking at our compliance processes, our ethics, our culture, and they go across the whole of the 55 bases that we operate in the U.S. As you can imagine, it's a very wide-ranging and large exercise. As they report out, we take those things on board to improve the process. They're not. They're monitoring our plans to improve the process. Then they'll audit those things that we put in place. That's what they're driving forward on. We welcome it. We welcome the support, and we want to improve the military housing controls and compliance in that business. Yeah, it is interesting because we're in a world where there's, there's more compliance. You know, there's a lot of attention paid to Speak Up, and whether or not, you know, we're getting the voice from the grassroots of the organization to the top of the organization, and then how we're acting on it. We have seen across the whole group, not just in military housing, how the number of Speak Ups have actually increased and, and, and how we investigate them and the likes of that, which is good because it leads to a transparent, very, clean culture. So we actively encourage that. I think that's happening across all corporates, in this day and age. You know, I think we're just sort of a, a little bit ahead of the trend in some cases. Thank you. Hi, Stephen Rawlinson from Applied Value. Just a couple from me. Just on the, that issue of compliance, perhaps an related question with regard to ESG. I mean, 2030 is getting closer. When we first started talking about 2030, it was a long way away, but it's not now. Who's gonna actually pay for ESG? Are customers willing to pay? Because some of the modern equipment that's coming out, that's hydrogen-powered and so on, is presumably a much higher cost. Are they looking for the bird of the margin to come on for that, come on you, and how will that play out over the next year or two? Or is it something that customers in a cost-plus environment are willing to fund? Secondly, the capital allocation model, and you didn't mention M&A as a likely, fl- flow of funds, and that's not been a feature of anything that's happened in the last few years. In an environment where technology, IT, you keep going to these sorts of meetings and we hear about digital and so on, are there some technology, areas or skill sets that M&A might fill the gaps in? Or are you just content with what you have now and believe that you can develop that internally? Yeah, well, look, first and foremost, you know, you're right, 2030 is a, is a, is a sort of a, a year nearer than when we presented the same results a year ago. Having said that, you know, customers aren't putting their hand up and saying, "Well, I'll pay extra for, for reduced carbon," and the likes of that. The expectation is you'll do that off your own back. Some of the government contracts, they're prepared to fund some innovations, some ideas, but, but generally speaking, it's a competitive world. Even if we said, well, we're going to increase prices, if someone's bidding at sort of a, a lower price, you know, you, you don't want to be surprised that you, you don't win the job either, so you don't even get a chance to implement those sorts of things. Look, there's no doubt that everybody wants to go to heaven, but nobody wants to die. We're all trying to be net zero carbon, but paying for it also is a challenge. The other thing as well, some of the technologies don't actually work. You can actually electrify a crane, and it can go up and down and do loads, but if you track it more than 100 meters, the battery's dead. There's, there are still technology challenges and innovation, and hydrogen is very nascent in the field. We've got pilots of all these things out. We're subsidizing a lot of them, the, the clients are subsidizing them. Look, something's going to break through, and you don't want to be sort of at the back of the class when it happens. We, like any big corporation, we, we invest in many things, and we hope that some of them pay for the, for the loss leaders. In terms of M&A, we don't really do it. We'll acquire capability, but year, you know, as I've always said, if I want to acquire a big project, or I want to lose money, I'll bid it directly rather than buy an intermediary. There's no, there's no point in that. But there are some exciting areas out there where, you know, there's- but it's, it's at the small end. And I think in our industry, this is the most, what's the word? Undercapitalized, digitized business in the economy, because, because of the way we do things. And, you know, we do have some competitive advantages. You know, for example, we've, we've worked with a, a small company called SiteAssist in terms of digital permitting, which has an inference on by following process, process, you save lives. It allows you to digitize and obtain permits anywhere on site and to track every single worker, which means you can be more productive. Then it gives you better assurance. Every single move and process step is tracked and photographed, which actually, believe it or not, gives you better assurance, but actually better productivity, and it's actually safer. There are things that we're investing in. We're also doing, on the treasury side and the financing side, we've done some major investments with... Oh, who's the, the company? I've forgotten the name. Obviously, you don't know either. Anyway, where's Andrew? Who's who's doing our treasury software that we're working with? He's somewhere in the audience. Richard? Bloomberg. Bloomberg and the others. Look, we are actually there's, there's real productivity in the back office to be had. We're there at the forefront of it, and if we can get that project into the field, that's where the money gets spent. If we can drive productivity there, that means we can deliver at higher margins. Causeway. Causeway was the other company I was thinking of, yeah. Glad one of us knows. Hey, it's Graham Hunt from Jefferies. I think just three questions from me. First half, margins in UK construction were very strong. I wondered if you could give us an updated view on where you see those margins going to in the mid to long term, and what your ambitions are there? Secondly, you said that you're stepping up investment in selling expenses. Are you seeing a more competitive bidding environment in the UK as we see some of these projects coming online? Third question on capital allocation. Are you guiding to the balance sheet down about GBP 150 million this year? Are you still comfortable with your shareholder returns framework, and should we expect... Assuming you come in line with that guidance, should we expect a similar balance of dividends and buyback for this year as well? Thank you. Do you want to do the first one and the third one, and I'll do the second one? Yeah, can do. I, I thought you'd have a go at the UK. It's- Well, I'm It's a long term, so that's always your- I'm gonna correct you. Oh, right. That's, that's fine. look, we do, we do, and we're still committed to the moving our margins up in the UK. As we've said, we think the range is 2%-3%. we want to get to the top of the 3%, and I think that's, that's still achievable, and we can still do that. Clearly, there's Leo has an aspiration as well. Well, look, I, I think it's reasonable. If you look at our capability and what we do and compare it with anybody, EPCs, all across the industry, the fact that we're not earning 4%-5% is just ridiculous. It comes down to the right contract, it comes down to flawless execution, it comes down to the right delivery mechanisms, and we have all of that within our portfolio. As our market has been maturing over the last 4-5 years, the possibility of that is still out there. Every time I raise that range of almost double what Phil's saying, he has me drug tested, and I passed on every occasion. The point is, this business is worth so much more than, than it's valued at, at this time. If you look at the cash generation, it's sort of very easy to see how we've been returning 10% of our, our end. We've, we've what? 10, 11% annual return on the business between buyback and dividends. You know, there's a, there's a, there's an engine in there, and what we've just got to do is make sure that Phil adds the numbers up correctly and reports it. The investment. Oh, what was it, more. More competition in the UK, is that why? The truth is, if you actually look at it, the number of people that can do the kind of stuff we do is, is actually quite small. The client, it's in their interest to make sure they go through a competitive process so that everyone falls on their sword and actually offers up the highest scope, the quickest delivery times, and the lowest cost. It really comes down to, you have to be confident in what you're doing so that we, we, we are setting the benchmark for margin return at the right price. You've got to remember, it's really important that we do this because we're not in the business of just taking cash out, we're in the business of reinvesting. In many of our businesses, especially the power business, it's three to five years to train up the next cadre of people, and that's really at, at our cost. If the margins remain low, we can't make that investment, and therefore, the industry in the long term suffer because it just hasn't have the capacities to supply. The way I see it is that I, you know, there's always going to be competitive activity, but I think in most cases, people know who they want to pick in order to deliver the job. You have to go through this song and dance process so they can be confident in their own mind they're getting best value. Yeah, the, the other thing I would say is that I think it's the, it's the volume of bidding that we see. Mm-hmm coming forward that means that we want to make an investment in, in sales expenses as well. Just, there's just a, a sheer volume issue that we, we see ahead of us over the next few years. On capital allocation, we're, we're committed to a, a multi-year share buyback. We're, we're, we're not coming off that in terms of what we've said. We're not going to, we're not going to make any commitments at the half year on what that value and what the, the shape of it is versus dividends and buyback. We'll, we'll do that later in the year when we, when we know where we're going to land, and what, what excess cash, we've got and, and what we, what we want to do with it. If you think about it, you're always looking to allocate your capital to where you get the best return. I can't think of a better return than buying back our own shares at this time. You know, can you imagine, what, 18 months ago, we were GBP 2.30 or GBP 2.40, you know, we're now at GBP 3.40, and we're still incredibly cheap. It's a good use of cash, isn't it? Leo, we've got some questions on the webcast, which, Jim is going to share with you. We got three questions from Gregor at UBS. What is your expectation for sustainable working capital levels and cash returns into 2024? Is your ambition to grow earnings in the earnings-based businesses in 2024 after a flat 2023? Thirdly, you commented you'll invest into overheads to seize the growth opportunities. What is the quantum? Phil, you do the first one, and I can do the second one. Yeah, we're clearly. Sorry, give us the sustainable again. I'll mix it up with the second one. Expectation for sustainable working capital levels and cash returns into 2024. Yeah, look, our, our, our kind of medium term, we've, we've said that, we want to be in the 11%-13% range of working cap. Clearly, we've done 2 years at 15%. I still, I still believe we're, we're going to see another working cap outflow next year, that will move us down towards that. I, I think we're probably not going to get down in the medium term, down to the 11%, but I think we'll get into the, into the 13% range. That's where we think we'll have that sustainable level, is probably more now at the 13% level rather than the 11. That's, that's the sustainable one, then ambition to grow next year, 2024. I'll answer that one in a sort of different way. The challenge around predicting the timing is, you know, the frameworks coming through, you know, the Consent Orders being applied and whatever. If the government consultation accelerates these things, it'll benefit everybody and save GBP billions, not GBP millions, GBP billions. My forecast at the moment is you'll see an uptick in earnings in second half of 2024, with a strong uptick in 2025. If some of these things come forward, I think you'll see a much better second half, a much bigger uptick second half in 2024. 2025 is, is going to be a very positive year for us. That's my forecast. I don't know if you want to build on that at all. Well, all I, all I'd say is I, I wouldn't, I wouldn't anticipate anybody changing their 2024 numbers as yet. Clearly, we, we'll have a better visibility as as we do the full year. Then the, the, the last one is, you know, like all these things, let's say we up our selling expense by GBP 5 million in order to cope with this sort of like tsunami of bids. You don't quite know that you're going to win them all. If you were to win them all, that would also obviously come through with a substantial increase. There's a little bit like, as Phil says, as you get to the end of the year, and we know what's actually come in. We know the successful outcome of one or two already, and we know the quantums are over GBP 1 billion. The point being is, it's a little bit too early, but we're very optimistic, given our market share and the strength of our capability, that we're going to be a significant player right across the board, in all of these areas. Again, just a little bit too early to say, with any degree of sort of fact, what that number will be, but it will unquestionably be very positive. I think we have to be clear, it's not going to be in the tens of millions, so it's probably in the, you know, the high, high millions. Thank you. There's no further questions. That was optimistic for Phil. Great. Well, thank you all for coming. I hope you enjoy your summer holiday after this event, and we'll see you next 6 months' time for the next checkup. Thank you.