Half Year 2026 Hill & Smith Holdings PLC Earnings Call

August 12, 2026

Rutger Helbing: Yeah. All right. Good morning, everyone, and welcome to Hill & Smith 2026 interim results presentation. In terms of the structure today, I will first take you through the highlights. Chris will then focus on the operating and financial review. I will finish with a strategic update and the outlook. Let me start with the highlights. I am pleased to report that the group delivered a strong H1 trading performance underpinned by robust infrastructure demand in the US. Organic constant currency revenue growth for the period was 5%, in line with our financial framework, and was led by our US businesses, which delivered 14% organic growth, supported by both Engineered Solutions and Galvanizing.

Speaker #1: Yep. All right, good morning, everyone, and welcome to the Hill & Smith 2026 Interim Results presentation. In terms of the structure today, I will first take you through the highlights, and Chris will then focus on the operating and financial review.

Speaker #1: And I will finish with the strategic update and the outlook. So, let me start with the highlights. I'm pleased to report that the Group delivered a strong first-half trading performance, underpinned by robust infrastructure demand in the US.

Speaker #1: Organic constant currency revenue growth for the period was 5%, in line with our financial framework, and was led by our US businesses, which delivered 14% organic growth, supported by both Engineered Solutions and Galvanizing.

Speaker #1: We continue to progress our end market mix, with revenue from our faster-growing, priority end markets increasing to 39%, while operating margins were in line with the prior period, with further expansion in the US offset by a weaker UK margin.

Rutger Helbing: We continued to progress our end market mix with revenue from our faster-growing priority end markets increasing to 39%, while operating margins were in line with the prior period, with further expansion in the US offset by a weaker UK margin. The group also continues to deliver strong returns while retaining significant balance sheet capacity. Return on invested capital increased, reflecting the growth in our US Engineered Solutions businesses, and remains well above our framework target of 22% plus. We aim to provide a growing dividend, and with the interim dividend of $0.25 per share being 7% up on the prior period. We continue to execute the GBP 100 million share buyback program that we announced this time last year. Our balance sheet remains strong, providing significant flexibility as we look forwards.

Rutger Helbing: We continued to progress our end market mix with revenue from our faster-growing priority end markets increasing to 39%, while operating margins were in line with the prior period, with further expansion in the US offset by a weaker UK margin. The group also continues to deliver strong returns while retaining significant balance sheet capacity. Return on invested capital increased, reflecting the growth in our US Engineered Solutions businesses, and remains well above our framework target of 22%+. We aim to provide a growing dividend, and with the interim dividend of $0.25 per share being 7% up on the prior period. We continue to execute the GBP 100 million share buyback program that we announced this time last year. Our balance sheet remains strong, providing significant flexibility as we look forwards.

Speaker #1: The group also continues to deliver strong returns while retaining significant balance sheet capacity. Return on invested capital increased, reflecting the growth in our US engineered solutions businesses, and remains well above our framework target of 22%+.

Speaker #1: We aim to provide a growing dividend, with the interim dividend of 25 cents per share being 7% up on the prior period. We also continue to execute the £100 million share buyback program that we announced this time last year.

Speaker #1: Our balance sheet remains strong, providing significant flexibility as we look forward. We made good strategic progress during the first half and continue to allocate capital in a disciplined way.

Rutger Helbing: We made good strategic progress during the H1 and continue to allocate capital in a disciplined way. In March, we committed to organic investments of GBP 35 million, or around $50 million, over the next two years to expand existing capacity in our US growth platforms. These projects are progressing well. We also announced the acquisition of Freeburg and Hentech, both of which have been successfully integrated into the group and are trading well, particularly Freeburg, where there is a strong momentum going into the H2. We have an active and growing pipeline of further attractive M&A opportunities aligned to our strategic framework, and we would be disappointed if we didn't secure further acquisitions before the year ends. In the UK, where markets remain challenging, we've taken actions to improve the strength and resilience of our businesses, which we expect to deliver improved financial performance over time.

Speaker #1: In March, we committed to organic investments of £35 million, or around $50 million, over the next two years to expand existing capacity in our US growth platforms.

Speaker #1: And these projects are progressing well. We also announced the acquisition of Freeberg and Hentech, both of which have been successfully integrated into the group and are trading well.

Speaker #1: Particularly, Freeberg, where there is strong momentum going into the second half. We have an active and growing pipeline of further attractive M&A opportunities aligned to our strategic framework, and we would be disappointed if we didn't secure further acquisitions before the year-end.

Speaker #1: In the UK, where markets remain challenging, we've taken actions to improve the strength and resilience of our businesses, which we expect to deliver improved financial performance over time.

Speaker #1: Given the strong first-half performance and the momentum in our US businesses, we now expect full-year operating profit to be modestly ahead of our previous expectations.

Rutger Helbing: Given the strong H1 performance and the momentum in our US businesses, we now expect full-year operating profit to be modestly ahead of our previous expectations, with a small year-on-year improvement in margins. Further ahead, we're confident in the medium-term outlook, reflecting our strong positions in structurally growing infrastructure markets. In summary, a strong H1, good strategic progress, and an increase in full-year expectations. With that, let me hand over to Chris.

Speaker #1: With a small year-on-year improvement in margins. Further ahead, we’re confident in the medium-term outlook, reflecting our strong position in structurally growing infrastructure markets. So, in summary: a strong first half, good strategic progress, and an increase in full-year expectations.

Speaker #1: And with that, let me hand over to Chris.

Speaker #2: Thanks, Rutger. And good morning. Starting with the results for the period, all amounts in this presentation are in US dollars, following our change in reporting currency at the start of the FY26 year.

Chris McLeish: Thanks, Rutger, and good morning. Starting with the results for the period. All amounts in this presentation are in USD, following our change in reporting currency at the start of the FY26 year. Revenues of $607 million were 5% ahead of the prior period on an organic constant currency basis, driven by double-digit US growth. Underlying operating profit was up 3% on an OCC basis, with total constant currency growth of 7%. Underlying operating margin for the period was unchanged at 17.0%, with continued growth in US margins offsetting weaker performance in our UK Engineered Solutions businesses. Return on invested capital increased by 90 basis points to 26.7%, reflecting our continued focus on capital efficiency. Underlying earnings per share grew by 9% to $0.906, reflecting the growth in underlying pre-tax earnings, as well as the reduced average share count.

Speaker #2: Revenues of $607 million were 5% ahead of the prior period on an organic constant currency basis, driven by double-digit U.S. growth. Underlying operating profit was up 3% on an OCC basis, with total constant currency growth of 7%.

Speaker #2: Underlying operating margin for the period was unchanged at 17.0%, with continued growth in US margins offsetting weaker performance in our UK Engineered Solutions businesses.

Speaker #2: Return on invested capital increased by 90 basis points to 26.7%, reflecting our continued focus on capital efficiency. Underlying earnings per share grew by 9% to 90.6 cents, reflecting the growth in underlying pre-tax earnings as well as the reduced average share count.

Speaker #2: The Board has declared an interim dividend of 25 cents, representing an increase of 7%. Moving to the geographical and divisional views of revenue and operating profit.

Chris McLeish: The board has declared an interim dividend of $0.25, representing an increase of 7%. Moving to the geographical and divisional views of revenue and operating profit. In the two pie charts at the top of this page, you can see the continuing growth of our US businesses denoted in light blue, which increased their share of group revenues and profits to 66% and 84% respectively. Looking at divisional revenues in the bottom left chart, US Engineered Solutions denoted in green increased its share of group revenues by four percentage points to 51%, and Galvanizing Services in orange grew by 1% to 25%. Conversely, UK and India Engineered Solutions reduced to 24% of revenues. Turning to covered divisional performance, starting with US Engineered Solutions, which delivered a very strong performance reflecting positive structural growth drivers. Revenue grew by 14% on an OCC basis, with constant currency growth of 18%.

Speaker #2: In the two pie charts at the top of this page, you can see the continuing growth of our U.S. businesses, denoted in light blue.

Speaker #2: This increased their share of group revenues and profits to 66% and 84%, respectively. Looking at divisional revenues, in the bottom left chart, US Engineered Solutions, denoted in green, increased its share of group revenues by 4 percentage points to 51%, and Galvanizing Services, in orange, grew by 1% to 25%.

Speaker #2: Conversely, UK and India Engineered Solutions reduced to 24% of revenues. Turning to covered divisional performance, starting with US Engineered Solutions, which delivered a very strong performance, reflecting positive structural growth drivers.

Speaker #2: Revenue grew by 14% on an OCC basis, with constant currency growth of 18%. Our composites business continued to see solid demand across a wide range of end markets.

Chris McLeish: Our Composites business continued to see solid demand across a wide range of end markets. The business delivered modest revenue growth against a strong comparator, although margins were slightly lower, reflecting end market mix. Our electrical Transmission and Distribution business, V&S Utilities, delivered an excellent performance with very strong double-digit revenue growth at margins above the divisional average. Our Engineered Supports business started to benefit for the new capacity available following the expansion at our Waggaman site in Louisiana, capitalizing upon strong demand from industrial and infrastructure projects, including data centers, energy, and water end markets. The business delivered over 20% revenue growth in the H1 at record margins. Performance in our off-grid solar and message board business showed initial signs of improvement as expected during the H1, benefiting from a positive demand backdrop.

Speaker #2: The business delivered modest revenue growth against a strong comparator, although margins were slightly lower, reflecting end market mix. Our electrical transmission and distribution business, VNS Utilities, delivered an excellent performance with very strong double-digit revenue growth at margins above the divisional average.

Speaker #2: Our engineered supports business started to benefit from the new capacity available following the expansion at our Wagerman site in Louisiana, capitalizing upon strong demand from industrial and infrastructure projects, including data centers, energy, and water end markets.

Speaker #2: The business delivered over 20% revenue growth in the first half, at record margins. Performance in our off-grid solar and message board businesses showed initial signs of improvement, as expected, during the first half, benefiting from a positive demand backdrop.

Speaker #2: Freeberg, our newly acquired business engaged in the design and manufacture of custom enclosures and other engineered solutions, performed well in the period. Revenue is expected to accelerate during the second half, with the commissioning of the new Arizona facility, although initially at lower margins, whilst activity builds.

Chris McLeish: Freeburg, our newly acquired business engaged in the design and manufacture of custom enclosures and other engineered solutions, performed well in the period. Revenue is expected to accelerate during the H2 with the commissioning of the new Arizona facility, although initially at lower margins whilst activity builds. Overall, the divisional margin increased by 20 basis points to 18.1%, including the benefit from Freeburg. The prospects for the division look strong, supported by ongoing investment to modernize the aging electrical grid and multi-year state and federal funding to upgrade infrastructure alongside investment to onshore vital components and serve additional technology demands. Galvanizing Services delivered a strong performance, with 11% OCC revenue growth and 18% OCC profit growth. Margins grew by 110 basis points to 25.6%. The US business continues to benefit from very positive demand tailwinds, with revenues up by 16%.

Speaker #2: Overall, the divisional margin increased by 20 basis points to 18.1%, including the benefit from Freeberg. The prospects for the division look strong, supported by ongoing investment to modernize the aging electrical grid and multi-year state and federal funding to upgrade infrastructure, alongside investment to onshore vital components and serve additional technology demand.

Speaker #2: Galvanizing Services delivered a strong performance, with 11% OCC revenue growth and 18% OCC profit growth. Margins grew by 110 basis points to 25.6%. The U.S. business continues to benefit from very positive demand tailwinds, with revenues up by 16%.

Speaker #2: Margins were above the prior period, demonstrating the excellent quality and service provided by our local teams. The UK grew revenues by 6%, ahead of the wider market.

Chris McLeish: Margins were above the prior period, demonstrating the excellent quality and service provided by our local teams. The UK grew revenues by 6%, ahead of the wider market. The margin was ahead of the prior period, reflecting continuing strong commercial execution. Overall, the division has good prospects underpinned by momentum across a broad range of end markets. Lastly, UK and India Engineered Solutions. Revenue and operating profit were down as expected, reflecting challenging conditions in UK markets, as well as the impact of a one-off project benefit in transport infrastructure markets in the prior period. We experienced good demand growth from data center markets, with revenue growing to 17% of the divisional total, up from 11% in the prior period. However, activity levels in road and industrial infrastructure and residential construction were below the comparative period, with the impact of operational leverage causing margins to reduce.

Speaker #2: The margin was ahead of the prior period, reflecting continued strong commercial execution. Overall, the division has good prospects, underpinned by momentum across a broad range of end markets.

Speaker #2: Lastly, UK and India Engineered Solutions. Revenue and operating profit were down, as expected, reflecting challenging conditions in UK markets, as well as the impact of a one-off project benefit in transport infrastructure markets in the prior period.

Speaker #2: We experienced good demand growth from data center markets, with revenue growing to 17% of the divisional total, up from 11% in the prior period.

Speaker #2: However, activity levels in road and industrial infrastructure and residential construction were below the comparative period, with the impact of operational leverage causing margins to reduce.

Speaker #2: We have responded decisively, initiating actions in three main areas. Firstly, we have placed increased focus on growing our positions in more attractive end market segments.

Chris McLeish: We have responded decisively, initiating actions in three main areas. Firstly, we have placed increased focus on growing our positions in more attractive end market segments. Barkers, our perimeter security business, has been very effective in moving away from lower margin, cyclical construction markets towards the group's faster-growing priority end markets. During the period, we transferred the galvanizing activities previously performed at Barkers to our principal UK galvanizing operation, Joseph Ash. This change releases incremental capacity at Barkers to further increase activity in data center and other higher margin sectors. Secondly, we have taken steps to combine existing businesses to create larger, more efficient operations. During the period, we combined two companies, Prolectric and Mallatite, to create a single business under a common leadership team, which is expected to realize both revenue and operational synergies and will be accretive to margins over the medium term.

Speaker #2: Barkers, our foremost security business, has been very effective in moving away from lower-margin, cyclical construction markets towards the group's faster-growing priority end markets.

Speaker #2: During the period, we transferred the galvanizing activities previously performed at Barkers to our principal UK galvanizing operation, Joseph Ash. This change releases incremental capacity at Barkers to further increase activity in data center and other higher-margin sectors.

Speaker #2: Secondly, we have taken steps to combine existing businesses to create larger, more efficient operations. During the period, we combined two companies, Proelectric and Malachite, to create a single business under a common leadership team. This is expected to realize both revenue and operational synergies and will be accretive to margins over the medium term.

Speaker #2: Thirdly, we have taken portfolio actions to reshape the UK group, aligned to our operating company framework. Hentech delivered double-digit margins during the period of our ownership and provides the wider UK business with strong roots into European data center markets.

Chris McLeish: Thirdly, we have taken portfolio actions to reshape the UK group aligned to our operating company framework. Hentech delivered double-digit margins in the period of our ownership and provides the wider UK business with strong roots into European data center markets. The disposal of our permanent steel road barrier business reduces our exposure to the lower growth UK roads market. Overall, these actions taken are expected to improve the resilience of the UK group and support margin recovery over time. Moving on to cash generation and the balance sheet. Cash conversion of 50% was below the comparative period, reflecting an increase in working capital to support growth in several of our faster-growing US businesses.

Speaker #2: And the disposal of our permanent steel road barrier business reduces our exposure to the lower-growth UK roads market. Overall, these actions taken are expected to improve the resilience of the UK group and support margin recovery over time.

Speaker #2: Moving on to cash generation in the balance sheet, cash conversion of 50% was below the comparative period, reflecting an increase in working capital to support growth in several of our faster-growing US businesses.

Speaker #2: Cash conversion performance is expected to increase significantly during the second half of the year, as this working capital build begins to reverse. We continue to target cash conversion of at least 80%, in line with our financial framework.

Chris McLeish: Cash conversion performance is expected to increase significantly during the H2 of the year as this working capital build begins to reverse, and we continue to target cash conversion of at least 80%, in line with our financial framework. The group's return on invested capital increased to 26.7%, reflecting faster growth in our larger US Engineered Solutions businesses. Covenant leverage was 0.4x at the end of the period, with over $340 million of funding headroom to support further investment and shareholder returns in line with our capital allocation policy. The share buyback initiated in August 2025 continues to be executed with around GBP 59 million completed at close of business on Monday. Rutger will discuss capital allocation later, but it is clear that we have significant investment flexibility and capacity to support our growth objectives. Before I hand back to Rutger, let me briefly summarize.

Speaker #2: The group's return on invested capital increased to 26.7%, reflecting faster growth in our larger U.S. engineered solutions businesses. Covenant leverage was 0.4 times at the end of the period, with over $340 million of funding headroom to support further investment and shareholder returns, in line with our capital allocation policy.

Speaker #2: The share buyback initiated in August 2025 continues to be executed, with around £59 million completed at close of business on Monday. Rutger will discuss capital allocation later, but it is clear that we have significant investment flexibility and capacity to support our growth objectives.

Speaker #2: Before I hand back to Rutger, let me briefly summarize. We achieved a strong performance in the first half, delivering well against the financial framework we have in place. With sustained momentum in our US businesses, we feel confident in the short- and medium-term growth outlook for the business.

Chris McLeish: We achieved a strong performance in the H1, delivering well against the financial framework we have in place. With sustained momentum in our US businesses, feel confident in the short and medium-term growth outlook for the business. With that, let me hand back to Rutger.

Speaker #2: With that, let me hand back to Rutger.

Speaker #1: Thank you, Chris. As you know, we categorize our end markets into four groups, as shown on this slide. You will also know by now that our revenue footprint is different in our two regions.

Rutger Helbing: Thank you, Chris. As you know, we categorize our end markets into four groups as shown on this slide. You will also know by now that our revenue footprint is different in our two regions, which you can see in the two donuts on the right of the slide. What is good to see, though, is that in both regions, we increased our exposure to the higher and resilient growth markets in the H1 2026. In the US, a more significant proportion of revenue is generated from these high growth and resilient markets, represented by the green and amber parts in the donut. The revenue share from those markets increased from 46% to 50% in the H1, which reflects our strength in T&D across our platform businesses, and also a growing presence in data centers.

Speaker #1: Which you can see in the two donuts on the right of the slide. What is good to see, though, is that in both regions we increased our exposure to the higher and more resilient growth markets in the first half of 2026.

Speaker #1: In the US, a more significant proportion of revenue is generated from these high-growth and resilient markets, represented by the green and amber parts in the donut.

Speaker #1: The revenue share from those markets increased from 46% to 50% in the first half, which reflects our strength in T&D across our platform businesses.

Speaker #1: And also a growing presence in data centers. In the UK, our perimeter security and access flooring businesses are pivoting to global data center markets.

Rutger Helbing: In the UK, our Perimeter Security and Access Flooring businesses are pivoting to global data center markets with a strong opportunity pipeline. Supported by the Hentech acquisition, 14% of revenue is now generated from data centers, which is the vast majority of our high growth emerging markets exposure. We also saw a reduction in stable growth markets, mainly in transport infrastructure due to the lower project activity and the disposal of our permanent steel barrier business in May. Our end market prioritization is firmly embedded in our operating company's strategic planning and decision-making. As a group, revenue from high and resilient growth markets increased from 32% in the H1 2025 to 39% in the H1 this year.

Speaker #1: With a strong opportunity pipeline. Supported by the Hentech acquisition, 14% of revenue is now generated from data centers, which is the vast majority of our high-growth, emerging markets exposure.

Speaker #1: We also saw a reduction in stable growth markets, mainly in transport infrastructure, due to lower project activity and the disposal of our permanent steel barrier business in May.

Speaker #1: Our end-market prioritization is firmly embedded in our operating company's strategic planning and decision-making. And as a group, revenue from high and resilient growth markets increased from 32% in the first half of 2025 to 39% in the first half of this year.

Speaker #1: So let me now explain one way we're increasing our exposure to priority end markets, by focusing on the exciting opportunity we have in the U.S. power transmission and distribution, or T&D, sector.

Rutger Helbing: Let me now explain one way how we are increasing our exposure to priority end markets by focusing on the exciting opportunity we have in the US power transmission and distribution, or T&D, sector. Firstly, I will cover the US electrical grid market and the factors that gives us confidence in its longer-term growth potential. The structural factors driving growth in US electrical grid markets are the need to increase the resilience of aging infrastructure, additional electrification requirements from EVs, data centers, and other industrialization, and grid balancing and storage needs due to a wider network of power sources. As a result of these factors, over the last 12 months or so, US utilities have announced a significant increase to their medium-term capital investment plans.

Speaker #1: Firstly, I will cover the US electrical grid market and the factors that give us confidence in its longer-term growth potential. The structural factors driving growth in US electrical grid markets are the need to increase the resilience of aging infrastructure, additional electrification requirements from EVs, data centers, and other industrialization, and grid balancing and storage needs due to a wider network of power sources.

Speaker #1: As a result of these factors, over the last 12 months or so, US utilities have announced a significant increase to their medium-term capital investment plans.

Speaker #1: Utility capital spending is projected to be around $1.4 trillion over the five years to 2030, of which about half is expected to be within the T&D system.

Rutger Helbing: Utility capital spending is projected to be around $1.4 trillion over the 5 years to 2030, of which about half is expected to be within the T&D system, implying a T&D compound annual growth rate approaching 10% across that period. This represents an exciting opportunity for Hill & Smith. Let me now move on to explain where we play and what we do in this market. T&D is a significant growth driver for our group, with around $150 million, or 24% of our group revenues, coming from T&D in H1, almost entirely in the US. Our US platform businesses have strong positions in niche segments of the T&D value chain. V&S Utilities, which currently accounts for almost 60% of our T&D revenue, focuses principally on the substations that provide the transition between transmission and distribution.

Speaker #1: Implying a T&D compound annual growth rate approaching 10% across that period. And this represents an exciting opportunity for Hill & Smith. So, let me now move on to explain where we play and what we do in this market.

Speaker #1: T&D is a significant growth driver for our group, with around $150 million, or 24% of our group revenues, coming from T&D in the first half.

Speaker #1: Almost entirely in the US. Our US platform businesses have strong positions in niche segments of the T&D value chain. V&S Utilities, which currently accounts for almost 60% of our T&D revenue, focuses principally on the substations that provide the transition between transmission and distribution.

Speaker #1: The business produces engineered, tapered tubular steel structures and component packaging for substations, as well as value-added services, including warehousing, assembly, and modular substation solutions.

Rutger Helbing: The business produces engineered taper tubular steel structures and component packaging for substations, as well as value-added services including warehousing, assembly, and modular substation solutions. It operates through framework agreements with both utilities and EPC contractors and has strong long-term relationships with major customers. Creative Composites Group, or CCG, which delivers around one-third of our T&D revenue, manufactures custom-designed composite material poles for distribution networks, together with a broad suite of ancillary products. It has a growing order book with several utilities, especially in California, where extreme weather creates demand for the more resilient poles CCG provides. The balance of our T&D revenue is largely accounted for by our galvanizing operations and our investments in capacity expansion within our existing network of galvanizing facilities will support further growth in this sector.

Speaker #1: It operates through framework agreements with both utilities and EPC contractors, and has strong long-term relationships with major customers. Creative Composites Group, or CCG, which delivers around one-third of our T&D revenue, manufactures custom-designed composite material poles for distribution networks.

Speaker #1: Together with a broad suite of ancillary products, it has a growing order book with several utilities, especially in California, where extreme weather creates demand for the more resilient pools CCG provides.

Speaker #1: The balance of our T&D revenue is largely accounted for by our galvanizing operations. And our investments in capacity expansion within our existing network of galvanizing facilities will support further growth in this sector.

Speaker #1: Having given that overview, I will now focus specifically on V&S Utilities, which has the largest exposure to T&D of any of our businesses. It accounts for around 15% of group revenue and is expected to grow by low double digits over the medium term.

Rutger Helbing: Having given that overview, I will now focus specifically on V&S Utilities, which has the largest exposure to T&D of any of our businesses. It accounts for around 15% of group revenue and is expected to grow by low double digits over the medium term. V&S is the market leader in its operating regions, with 5 locations in the Midwest and Northeast of the US, taking advantage of the proximity of supply to demand. As I already mentioned, the business has strong customer relationships with leading utilities and EPCs, and the top 10 customers account for well over half of its revenue. V&S focuses on providing shorter lead times than its competitors as well as better service, which is a significant source of competitive advantage at a time of such high demand.

Speaker #1: V&S is the market leader in its operating regions, with five locations in the Midwest and Northeast of the US, taking advantage of the proximity of supply to demand.

Speaker #1: Of supply to demand. As I already mentioned, the business has strong customer relationships with leading utilities and EPCs, and the top 10 customers account for well over half of its revenue.

Speaker #1: V&S focuses on providing shorter lead times than its competitors, as well as better service, which is a significant source of competitive advantage at a time of such high demand.

Speaker #1: We are investing in expanding capacity at our Burton and Muskogee sites to help maintain our lead times and address the market growth opportunities. In terms of financial performance, V&S has a strong track record, with organic growth of 9% over the last decade.

Rutger Helbing: We are investing in expanding capacity at our Burton and Muskogee sites to help maintain our lead times and address the market growth opportunities. In terms of financial performance, V&S has a strong track record with an organic growth of 9% over the last decade. The business delivered very strong double-digit revenue growth in H1 2026 with a record order book at the end of June following a higher order intake during the period. V&S has operating margins that are above both divisional and group average and has a high return on invested capital. They also benefit from successful M&A with both acquisitions made in 2024 with Korns and Capital Steel performing well. Overall, we are excited by the growth prospects in the US T&D market and our platform businesses are strongly positioned to benefit from that growth.

Speaker #1: The business delivered very strong double-digit revenue growth in the first half of 2026, with a record order book at the end of June following a higher order intake during the period.

Speaker #1: V&S has operating margins that are above both the divisional and group average, and has a high return on invested capital. They also benefit from successful M&A, with both acquisitions made in 2024—Whitlow and Capital Steel—performing well.

Speaker #1: Overall, we are excited by the growth prospects in the US T&D market, and our platform businesses are strongly positioned to benefit from that growth.

Speaker #1: With the strong structural growth dynamics in T&D and other priority end markets in the US, we have committed around $50 million over the next two years to grow our existing network in our Utilities and Galvanizing businesses.

Rutger Helbing: With the strong structural growth dynamics in T&D and other priority end markets in the US, we have committed around $50 million over the next two years to grow our existing network in our utilities and galvanizing businesses. I would like to provide a little more detail on these and on other growth investments that we are making. Prior to this $50 million commitment in 2025, we completed the expansion of The Paterson Group's Waggaman facility at a cost of $10 million. The Paterson Group produces engineered pipe supports for infrastructure projects, including water, data centers, and energy plants. The new facility was completed on time and to budget and helped to drive The Paterson Group's strong H1 trading performance, with over 20% organic revenue growth at record margins. In V&S Utilities, we have 2 projects in progress.

Speaker #1: And I would like to provide a little bit more detail on these, and on other growth investments that we are making. Prior to this $50 million commitment, in 2025, we completed the expansion of TPG's Wegeman facility at a cost of $10 million.

Speaker #1: TPG produces engineered pipe supports for infrastructure projects, including water, data centers, and energy plants. The new facility was completed on time and on budget, and helped drive TPG's strong first-half trading performance, with over 20% organic revenue growth at record margins.

Speaker #1: In V&S Utilities, we have two projects in progress. We're expanding the Burton, Ohio site at a cost of around $10 million, which will come online at the end of this year.

Rutger Helbing: We are expanding the Burton, Ohio site at a cost of around $10 million, which will come online at the end of this year. While in Oklahoma, we are spending around $20 million to relocate to a new purpose-built facility nearby, which will come online late in 2027. Both of these will increase our capacity to meet the demand across the T&D markets that I outlined before. When we look at our galvanizing business, demand drivers are more broad-based and positively impacted by federal, state, and private investments to support industrial expansion and technology change, but also with positive end market mix, increasing the share of galvanized steel. We are investing around $20 million in expanding our facility in Columbus, Ohio, which will come online from the end of 2026 and further broadening our addressable markets.

Speaker #1: While in Oklahoma, we're spending around $20 million to relocate to a new, purpose-built facility nearby, which will come online late in 2027. Both of these will increase our capacity to meet the demand across the T&D markets that I outlined before.

Speaker #1: When we look at our galvanizing business, demand drivers are more broad-based and positively impacted by federal, state, and private investments to support industrial expansion and technology change.

Speaker #1: But also, with a positive end market mix increasing the share of galvanized steel, we're investing around $20 million in expanding our facility in Columbus, Ohio, which will come online from the end of 2026.

Speaker #1: And further broadening our addressable markets. Additionally, at Freeberg, which we acquired in April, we are investing $12 million in a new facility in Eloy, Arizona, where we will manufacture gensets for data centers and other faster-growing, priority end markets.

Rutger Helbing: Additionally, at Freeburg, which we acquired in April, we are investing $12 million in a new facility in Eloy, Arizona, where we will manufacture gensets for data centers and other faster-growing priority end markets. Commissioning for this facility is on track, and production will build during the H2 of this year. Freeburg has delivered an impressive performance to date, and we are excited about the potential for future growth. Together, these investments will underpin our growth ambition in our larger US businesses for 2027 and the medium term. The way in which we have allocated capital in recent years has been key to the progress that we have made and will continue to be a critical focus for us going forwards. As you know, we are both disciplined and agile in our approach to capital allocation.

Speaker #1: Commissioning for this facility is on track, and production will build during the second half of this year. Freeberg has delivered an impressive performance to date, and we are excited about the potential for future growth.

Speaker #1: Together, these investments will underpin our growth ambition in our larger U.S. businesses for 2027 and the medium term. The way in which we've allocated capital in recent years has been key to the progress that we've made, and will continue to be a critical focus for us going forward.

Speaker #1: As you know, we are both disciplined and agile in our approach to capital allocation. Together with our strong balance sheet, this will provide both the capacity and flexibility to invest further for growth and to increase shareholder returns.

Rutger Helbing: Together with our strong balance sheet, this will provide both the capacity and flexibility to invest further for growth and to increase shareholder returns. In doing so, we apply a clear prioritization. Our first priority is to drive organic growth through investments in capital projects, talent, and innovation, focusing on higher growth, higher return end markets. Our investment in capacity expansion on the previous slide are good examples of this in action. Our second priority is to target inorganic growth with a structured approach to M&A based on our operating company and financial frameworks. We target to invest on average $65 to $95 million each year. I am pleased that we have successfully integrated both Freeburg and Hentech, strengthening our positions in priority end markets in both the US and the UK. Our M&A pipeline remains active and growing.

Speaker #1: And in doing so, we apply a clear prioritization. Our first priority is to drive organic growth through investments in capital projects, talent, and innovation, focusing on higher-growth, higher-return end markets.

Speaker #1: Our investment in capacity expansion on the previous slide is a good example of this in action. Our second priority is to target inorganic growth, with a structured approach to M&A, based on our operating company and financial frameworks.

Speaker #1: We target to invest, on average, $65 to $95 million each year. I'm pleased that we have successfully integrated both Freeberg and Hentech, strengthening our positions in priority end markets in both the US and the UK.

Speaker #1: And our M&A pipeline remains active and growing. Thirdly, we aim to deliver a growing dividend, understanding the importance of providing consistent and growing returns to our shareholders.

Rutger Helbing: Thirdly, we aim to deliver a growing dividend, understanding the importance of providing consistent and growing returns to our shareholders. Lastly, we will return surplus capital to shareholders, where leverage is expected to remain low for a sustained period. Having now completed over half of our GBP 100 million buyback, our leverage remains low at just 0.4 times, which provides significant further funding capacity. Let me now finish with the outlook. We delivered a strong H1 led by our US businesses, where we expect the positive momentum to continue underpinned by structural investments to upgrade and onshore vital infrastructure and support technology change. Our organic investments in capacity expansion and our active M&A pipeline will also help to drive further growth.

Speaker #1: Lastly, we will return surplus capital to shareholders, where leverage is expected to remain low for a sustained period. Having now completed over half of our £100 million buyback, our leverage remains low at just 0.4 times, which provides significant further funding capacity.

Speaker #1: So, let me now finish with the outlook. We delivered a strong first half, led by our US businesses, where we expect the positive momentum to continue, underpinned by structural investments to upgrade and onshore vital infrastructure and support technology change.

Speaker #1: Our organic investments in capacity expansion and our active M&A pipeline will also help to drive further growth. We expect the UK environment to remain challenging, and against that backdrop, we've taken a range of measures to strengthen our UK operations.

Rutger Helbing: We expect the UK environment to remain challenging, and against that backdrop, we have taken a range of measures to strengthen our UK operations, making our businesses more resilient and supporting margin recovery over time. Overall, we now expect full year 2026 operating profit to be modestly ahead of our previous expectation, with a small margin progression year-on-year. We continue to have confidence in the medium-term growth outlook, reflecting our strong positions in structurally high growth infrastructure markets. With that, Chris and I will be delighted to answer any of your questions.

Speaker #1: Making our businesses more resilient and supporting margin recovery over time. Overall, we now expect full-year 2026 operating profit to be modestly ahead of our previous expectation, with a small margin progression year on year.

Speaker #1: We continue to have confidence in the medium-term growth outlook, reflecting our strong positions in structurally high-growth infrastructure markets. And with that, Chris and I will be delighted to answer any of your questions.

Speaker #1: Thanks.

Rob Gentry: Thanks. Hi, it is Rob Gentry, Berenberg. Thanks for the presentation, guys. So three questions. Firstly on US T&D, thanks for a lot more color that you provided. Can you just give us a bit of insight into the competitive environment? Does it remain really fragmented, or is there a bit of a rush to consolidate given the scope of opportunity? Secondly, also on US T&D, can you just give us an insight into, is there any change in customer type given the changing dynamics of US infrastructure, or does it remain regional utility focused? Are you seeing new types of customers coming on? Then thirdly, on galvanizing, again, really good performance. Can you just give us some indication of capacity utilization in the US and the UK? Clearly you have very decent step-up in margin as well, but just how full are you at the moment?

Rob Chantry: Thanks. Hi, it is Rob Gentry, Berenberg. Thanks for the presentation, guys. So three questions. Firstly on US T&D, thanks for a lot more color that you provided. Can you just give us a bit of insight into the competitive environment? Does it remain really fragmented, or is there a bit of a rush to consolidate given the scope of opportunity? Secondly, also on US T&D, can you just give us an insight into, is there any change in customer type given the changing dynamics of US infrastructure, or does it remain regional utility focused? Are you seeing new types of customers coming on? Then thirdly, on galvanizing, again, really good performance. Can you just give us some indication of capacity utilization in the US and the UK? Clearly you have very decent step-up in margin as well, but just how full are you at the moment?

Speaker #2: Hi, it's Rob Chantry, Berenberg. Thanks for the presentation, guys. So, three questions. Firstly, T&D, thanks for a lot more color that you provided.

Speaker #2: Can you just give us a bit of insight into the competitive environment? Does it remain really fragmented, or is there a bit of a rush to consolidate, given the scope of opportunity?

Speaker #2: Secondly, also on US T&D, can you just give us some insight into whether there is any change in customer type, given the changing dynamics of US infrastructure, or does it remain regional utility-focused?

Speaker #2: Are you seeing new types of customers coming on? And then, thirdly, on galvanizing again—really good performance. Can you just give us some indication of capacity utilization in the US and the UK?

Speaker #2: Because, clearly, you've got a very decent step up in margin as well, but just how full are you at the moment? Thanks.

Rob Gentry: Thanks.

Rob Chantry: Thanks.

Speaker #1: All right. Maybe I'll do the first two, and you can talk about capacity. So, if we look at US T&D and sort of the competitive environment, I think in the areas where we operate, in terms of the substations, we don't see a change in that competitive environment.

Rutger Helbing: All right. Maybe I will do the first two, and you can talk about capacity. If we look at US T&D and the competitive environment, I think in the areas where we operate, in terms of the substations, we do not see a change in that competitive environment. Demand is fantastic with record order books. So, I think in that dynamic, we continue to be focused on our service levels and our lead times. The lead times have gone up a little bit, but everybody, their lead times have gone up. So for us, the key thing is that we remain competitive there and have better lead time than our competition. But we have not really seen different participants coming into that market. Similarly, I would say in our markets we operate, we still work with the different customers, the main utilities and big EPC, so not seeing change from that.

Speaker #1: Demand is fantastic, with record order books. So, I think in that dynamic, we continue to be focused on our service levels and our lead times.

Speaker #1: The lead times have gone up a little bit, but everybody—their lead times have gone up. So, for us, the key thing is that we remain sort of competitive there and have better lead times than our competition.

Speaker #1: But we haven't really seen different participants sort of coming into that market. And similarly, I would say, in our markets we operate, we still work with different customers.

Speaker #1: The main utilities and big EPCs, so not seeing change from that. We've said in the past that we do look at adjacencies in T&D, because this is clearly an attractive market, and we only operate in small niches at the moment.

Rutger Helbing: We've said in the past that we do look at adjacencies in T&D because this is clearly an attractive market, and we only operate in small niches at the moment. There we do see slightly, in some of those adjacencies, quite a lot of activity also in terms of M&A. That's an area where we continue to look at, but we're very keen to keep our financial discipline there as well. But overall, there is a little bit more activity in those areas, but not in the niches that we operate, I would say.

Speaker #1: And there we do see, slightly, in some of those adjacencies, quite a lot of activity, also in terms of M&A. And that's an area where we continue to look, but we're very keen to keep our financial discipline there as well.

Speaker #1: But overall, there is a little bit more activity in those areas, but not in the niches that we operate in, I would say.

Speaker #3: And Rob, just in terms of GAL, the capacity utilization across both the UK and US is in that sort of 70% to 75% territory of theoretical capacity.

Chris McLeish: Well, just in terms of gal, the capacity utilization across both UK and US is in that 70% to 75% territory of theoretical capacity. We always talk about that being the sweet spot, because if you move past that, then you tend to find that starts to impair your operational flexibility, which can prevent you accessing some of those margins that you've seen the business being capable of performing over time. So that's where we want to keep things. There are some marginal gains that both of the businesses have been able to get at when you just think about the efficiency with which you move steel through the factories. So there are marginal gains that you can continue to access that keep that capacity utilization at that level despite continuing market growth. So that's the way we think about things in general.

Speaker #3: We always talk about that being the kind of sweet spot, because if you move past that, then you tend to find that it starts to impair your sort of operational flexibility.

Speaker #3: Which can prevent you from accessing some of those margins that you’ve seen the business being capable of performing over time. So that’s where we want to keep things.

Speaker #3: There are some marginal gains that both of the businesses have been able to get out. When you just think about the efficiency with which you move steel through the factories, there are sort of marginal gains that you can continue to access that keep that sort of capacity utilization at that level, despite continuing market growth.

Speaker #3: So that's the sort of way we think about things in general. Now, in the U.S., clearly in the first half we saw much stronger growth—16% growth in revenue—which speaks to the fact that you're serving a set of markets there that are really firing on all cylinders.

Chris McLeish: Now in the US, clearly in the H1, we saw much stronger growth, 16% growth in revenue, which speaks to the fact that you're serving a set of markets there that are really firing on all cylinders. The action that we've taken by essentially doubling the footprint in Columbus, Ohio, will give us something like an additional 15% or so of capacity relative to the theoretical nameplate we've got today. So the way that I would think about that is to say, look, that is capacity that will underpin what we expect to be market growth over the next three to five years or so. So it will come on at the end of this year.

Speaker #3: The action that we've taken by essentially doubling the footprint in Columbus, Ohio, will give us something like an additional 15 percent or so of capacity relative to the theoretical nameplate we've got today.

Speaker #3: And so, the way that I would think about that is to say, look, that is capacity that will underpin what we expect to be market growth over the next sort of three to five years or so.

Speaker #3: So, it will come on at the end of this year; it will be available, and that will build over time. But actually, it will be a very effective way of making sure that, despite that sort of level of market growth continuing, we continue to operate our networks in that sort of 70 to 75 percent range, which is exactly where we want to be.

Chris McLeish: It will be available, and that will build over time, but actually it will be a very effective way of making sure that despite that level of market growth continuing, we continue to operate our networks in that 70% to 75%, which is exactly where we want to be.

Speaker #4: Hi, guys. Thank you for the questions. Lacey Midgley, Bloomberg Intelligence. Three questions, please, all kind of around U.S. growth and really helpful color. I think, firstly, on VNS Utilities, you pointed to low double-digit medium-term growth, but the first half growth and the order book seem stronger.

Lacey Midgley: Hi, guys. Thank you for the questions. Lacey Midgley at Bloomberg Intelligence. Three questions, please. All around US growth and really helpful color. I think firstly on V&S Utilities, you pointed to low double-digit medium-term growth, but the H1 growth and the order book seems stronger. I know you also talked to V&S, one of the distinct advantages over your competitors as being shorter lead time. Just trying to gauge how much that contributed to strong H1 growth, if there was a pull forward there, or if the record order book is implying a higher run rate than that going forwards. Then, just on the order book, you talked to US T&D growth split across modernization, electrification, and balancing. I think the three you pulled out, just wondered if you could give some color on the order book split across those three categories, please.

Lacie Midgley: Hi, guys. Thank you for the questions. Lacie Midgley at Bloomberg Intelligence. Three questions, please. All around US growth and really helpful color. I think firstly on V&S Utilities, you pointed to low double-digit medium-term growth, but the H1 growth and the order book seems stronger. I know you also talked to V&S, one of the distinct advantages over your competitors as being shorter lead time. Just trying to gauge how much that contributed to strong H1 growth, if there was a pull forward there, or if the record order book is implying a higher run rate than that going forwards. Then, just on the order book, you talked to US T&D growth split across modernization, electrification, and balancing. I think the three you pulled out, just wondered if you could give some color on the order book split across those three categories, please.

Speaker #4: And I know you also talked to VNS. One of the distinct advantages over your competitors is having a shorter lead time. So, just trying to gauge how much that contributed to the strong first-half growth—if there was a pull-forward there—or if the record order book is implying a higher run rate than that going forward.

Speaker #4: And then, just on the order book, you talked to US T&D growth split across modernization, electrification, and balancing—I think the three you pulled out.

Speaker #4: I just wondered if you could give some color on the order book split across those three sort of categories, please. That would be helpful. And then, just lastly, on the working capital build in the first half, how much of that was related to VNS utilities and that order book?

Lacey Midgley: That would be helpful. Then just lastly on the working capital build in the H1, how much of that was related to V&S Utilities and that order book? I guess and how much capacity do you think you need to support the growth there? If it is a higher run rate, how do you think about that going forward as well? Thank you.

Lacie Midgley: That would be helpful. Then just lastly on the working capital build in the H1, how much of that was related to V&S Utilities and that order book? I guess and how much capacity do you think you need to support the growth there? If it is a higher run rate, how do you think about that going forward as well? Thank you.

Speaker #4: I guess. And how much capacity do you think you need to support the growth there? And if it is a higher run rate, how do you kind of think about that going forward as well?

Speaker #4: Thank you.

Speaker #1: All right, lots of questions. We'll try to give it a go, and then Chris, maybe if you want to add on, I'll try to start with it.

Rutger Helbing: All right. Lots of questions. We will try to give it a go and then Chris, maybe if you want to add on. I will try to start with it. Clearly, yes, we do believe that utilities has this low double digits opportunity of growth in the medium term, very much driven by what we already said, the 10% overall growth we see in T&D investments over the five years. I think in terms of, they clearly had a fantastic H1 because we have a very strong order book. I do not expect that sort of level to be always at the same. It is almost trying to catch up with that order book that helps to drive that.

Speaker #1: But clearly, yes, we do believe that utilities has this sort of low double digit sort of opportunity of growth over in the medium term, very much driven by what we already said, sort of the 10 percent overall growth we see in T&D investments over the five years.

Speaker #1: I think in terms of they clearly had a fantastic first half because we have a very strong order book. I don't expect that in a sort of level to be always at the same.

Speaker #1: It's sort of almost trying to catch up with that order book that helps to drive that. In terms of how it splits between the different categories that drive the growth, we don't know, is my honest answer.

Rutger Helbing: In terms of how it splits between the different categories that drive the growth, we do not know, is my honest. That is basically the general trends that drive that overall capital investments. In the end of the day, we provide a substation, steel structure for that. So whether that is driven by additional capacity or upgrading the existing is something that is more difficult for us to have visibility on. Clearly with all of that growth, we are investing, as we say, in both Burton and Muskogee. So in total, about $30 million. That overall provides us so capacity, additional capacity utilities are driven by a couple things. First of all, you can do more shifts. That is what we are doing at the moment. So originally we worked on one shift, and now we are putting a second shift in.

Speaker #1: But because that is basically the general trends that drive that overall capital investments. But at the end of the day, we provide a substation.

Speaker #1: Steel structure for that. So, whether that's driven by additional capacity or upgrading the existing, is something that is more difficult for us to have sort of visibility on.

Speaker #1: And clearly, with all of that growth, we are investing, as we say, in both Burton and Muskogie. So in total, about $30 million that overall provides us.

Speaker #1: So, additional capacity in utilities is sort of driven by a couple of things. First of all, you can do more shifts, yeah?

Speaker #1: And that's what we're doing at the moment. So, originally, we worked on one shift, and now we're putting a second shift in. You can invest in some additional capacity in some equipment.

Rutger Helbing: You can invest in some additional capacity in some equipment. Then actually you need space. You need space for welders basically. Both what we are doing in Burton and in Muskogee, we have a significant opportunity to put more welding stations in. You do not have to do that in one go. You can do that over time, matching that with the growing demand. Across those three things and those investments, we feel pretty comfortable that we can deal with the demand over the next couple of years.

Speaker #1: And then, actually, you need space, and you need space for welders, basically. In both what we're doing in Burton and in Muskogee, we have a significant opportunity to put more welding stations in, but you don't have to do that all at once—you can do that over time.

Speaker #1: Sort of matching that with the growing demand. But across those three things, and those investments, we feel pretty comfortable that we can deal with the demand over the next couple of years.

Speaker #1: Yeah?

Speaker #2: I don't know if you.

[Company Representative] (Hill & Smith): Then Ed, you.

Speaker #3: Yeah, let me perhaps deal with the working capital question then. So, in terms of how we think about working capital, we measure working capital as a percentage of annualized sales in every business.

Chris McLeish: Yeah. Let me perhaps deal with the working capital question. In terms of how we think about working capital, we measure working capital as a percentage of annualized sales in every business. Clearly our focus is making sure that we are very efficient in the way that we manage that working capital. There is seasonal growth in the business, and that has been particularly pronounced with a very strong Q2 performance of the business. In a way, that growth was still in the balance sheet at the half year date. If you look at it expressed as a function of last three months sales, it went up by about 80 basis points or so across the group. About half of that increase was within utilities, as you say. The other half was essentially making working capital investments elsewhere in the US group.

Speaker #3: And clearly, our focus is making sure that we're very efficient in the way that we manage that working capital. There is seasonal growth in the business.

Speaker #3: And that's been particularly pronounced with a very strong Q2 performance of the business. So, in a way, that growth was still in the balance sheet at the half-year date.

Speaker #3: But if you look at it expressed as a sort of function of last three months' sales, it went up by about 80 basis points or so across the group.

Speaker #3: About half of that increase was within Utilities, as you say. The other half was essentially making working capital investments elsewhere in the US group.

Speaker #3: So, across pipe support—the TPG business, the roads business, and a little bit in CCG as well—there was also a little bit of build there.

Chris McLeish: Across pipe support, the TPG business, the roads business, and a little bit in CCG as well. There was also a little bit of build there. As we have said in the statement, we expect that to start to reverse in the H2, and therefore we are targeting getting back towards 80% for the full year. It was 50% in the H1, which was really a reflection primarily of that action that we took to build a little bit of working capital. That is the way to think about it, and certainly we will be looking to bring that number back. It was 15.6% at the half year 2025. We would be looking to bring it back towards that sort of number for the full year.

Speaker #3: As we've said in the statement, we expect that to start to reverse in the second half, and therefore we're targeting getting back towards 80 percent for the full year.

Speaker #3: It was 50 percent in the first half, which was really a reflection, primarily, of that action that we took to build a little bit of working capital.

Speaker #3: So that's the way to think about it. And certainly, we'll be looking to bring that number back. It was sort of 15.6 percent at the half year '25.

Speaker #3: We'd be looking to bring it back towards that sort of number for the full year.

Speaker #5: Hi, David Farrell from Jefferies. I'll go one at a time, so if you happen to write them all down. Firstly, again, thanks very much for the detail on VNS utilities.

David Farrell: Hi, David Farrell from Jefferies. I will go one at a time, save you having to write them all down. Firstly, again, thanks very much for the detail on V&S Utilities. One of your peers kind of talked to their numbers recently, and a lot of that was pricing over volume. There was some volume. Maybe you can give the split of how much of that low double-digit growth that you saw in the H1 was pricing versus volume. Is that kind of essentially pass-through pricing on steel or competitive?

Speaker #5: One of your peers kind of talked to their numbers recently, and a lot of that was kind of pricing over volume. There was some volume.

Speaker #5: So maybe we can give the split of how much of that low double-digit growth that you saw in the first half was pricing versus volume.

Speaker #5: Is that essentially pass-through pricing on steel, or is it competitive?

Speaker #1: So I know Rafael Montino is doing a lot in transmission—that's mainly their business. I don't know where they talk about pricing, necessarily.

Rutger Helbing: I know Valmont is doing a lot in transmission. That is mainly of their business. I do not know whether they talk about pricing necessarily, but if you think about a substation, it is a unique design. That is partly why we are doing that. So what we are doing is we are recovering the inflation on that, and we are making sure that we maintain the margin. So I struggle always a little bit with the price volume bit on the substations because they are not a standard product, right. Now, in transmission, that is not what we do, by the way. I can see that that is more standard and maybe that is easier to talk about. But, for us, the key thing is to make sure that we maintain or grow the margins if we can.

Speaker #1: If you think about a substation, it's a unique design—that's partly why we're doing that. So what we're doing is we're recovering the inflation on that.

Speaker #1: And we're making sure that we maintain the margin. I always struggle a little bit with the price/volume bit on the substations because they're not a standard product, right?

Speaker #1: Now, in transmission, that's not what we do, by the way. I can see that that is more standard, and maybe that's easier to talk about.

Speaker #1: But for us, the key thing is to make sure that we maintain, or grow, the margins if we can.

Speaker #2: Thanks. I just want to touch on UK roads. Obviously, Barker's has been a real success story for you in terms of turning around their focus.

David Farrell: Got it. Thanks. Just want to touch on UK roads. Obviously, Barkers has been kind of a real success story for you in terms of turning around where they are focused. It sounds as if you want to do similar across the other businesses in that portfolio. Have they been given a set amount of time to reposition themselves and say if 18 months they have not delivered it, is that when we look afresh as to what their position is in the portfolio?

Speaker #2: It sounds as if you want to do something similar across the other businesses in that portfolio. Are they being given a set amount of time to reposition themselves, and, say, if in 18 months they haven't delivered, is that when we kind of look afresh at what their position is in the portfolio?

Speaker #1: Absolutely. I think it's right that we always look at our portfolio, and first of all—as I've said in the past—we look at whether we think it's a structural issue.

Rutger Helbing: Absolutely. I think it is right that we always look at our portfolio and first of all, what I said in the past, we look, do we think it is a structural issue, yeah. Structurally, and we cannot move it into a more attractive area, then clearly that will have a portfolio sort of consequence, which sort of was the case with VRS where we said, "Look, structurally, we think this is not going to be attractive and therefore we are disposing of it." But as you said, Barkers, I think, is well on track to move into the data center. Our Floor Access business is a bit behind, yeah. So, we need to see that changing in the next 12 months. Hentech is really the key in that sort of transition because they have got this fantastic sort of network and linking into the EPCs for the data center.

Speaker #1: And structurally, if we can't move it into a more attractive area, then clearly that will have portfolio consequences. That was sort of the case with VRS, where we said, look, structurally, we think this is not going to be attractive.

Speaker #1: And therefore, we're disposing of it. But as you said, Barker's, I think, is well on track to sort of move into that data center.

Speaker #1: Our floor access business is a bit behind, and so we need to see that changing in the next 12 months. Hentech is really the key in that transition because they've got this fantastic sort of network and link into the EPCs for the data center.

Speaker #1: So yeah, we're not going to sit here for years and wait. So I'm very pleased about the progress by Barker's. I think Floor Access has a good opportunity.

Rutger Helbing: We are not going to sit here for years and wait. I am very pleased about the progress by Barkers. I think Floor Access has a good opportunity. I think the roads business, what we still have is the temporary barrier business, which in itself, we have got a very strong position in the market. We of course want to see an uptick in some activity through real investment, Road Investment Strategy 3. We do not expect this year yet. We are going to have to see that picking up in order to be happy about that.

Speaker #1: I think, in the roads business, what we still have is the temporary barrier business, which in itself, we've got a very strong position in the market.

Speaker #1: And we, of course, want to see an uptick in some activity through real investment, road investment strategy three. But we don't expect that this year yet.

Speaker #1: But we're going to have to see that picking up in order to be happy about that.

Speaker #2: Okay, final question for Chris. Pension deficit repayments—can you kind of remind us where we are in terms of those numbers?

David Farrell: Okay. Final question for Chris. Pension deficit repayments. Can you kind of remind us where we are in terms of those numbers?

Speaker #3: Yes, sure. At the time of the last triennial valuation, which was about a year and a half ago, there was a small deficit.

Chris McLeish: Yeah, sure. At the time of the last triennial valuation, which was a year and a half or so ago now, there was a small deficit which was funded through until the end of Q1 of this year. We were making payments, and then we agreed with the trustees that we would cease payments into the pension scheme at that point. Based on our roll forward, on a best estimate funding basis, we believe that that scheme is now in a modest surplus. The work of the trustees and the company over the course of the next three to four years is to make sure that the quality of scheme data is sufficient to then look to take that off the balance sheet of the group. No, it is in very good shape. It is in our surplus position, and we have stopped making cash contributions.

Speaker #3: Which was funded through until the end of Q1 of this year, so we were making payments. And then we agreed with the trustees that we would cease payments into the pension scheme at that point.

Speaker #3: So, based on our sort of roll-forward on a sort of best-estimate funding basis, we believe that that scheme is now in a modest surplus.

Speaker #3: And the work of the trustees and the company over the course of the next three to four years is to make sure that the quality of scheme data is sufficient to then look to take that off the balance sheet of the group.

Speaker #3: But no, it's in very good shape. It's in our surplus position, and we stopped making cash contributions.

Speaker #2: Okay. Thanks.

David Farrell: Okay, thanks.

Speaker #4: Morning. It's Richard Page from Deutsche Unis. Just a couple from me, please. Freeberg, first half performance looks like the margins are significantly ahead of where we thought they might be.

Richard Page: Morning, it's Richard Page from Deutsche Numis. Just a couple from me, please. Freeburg H1 performance, it looks like the margins are significantly ahead of where we thought they might be. Could you just talk through that and obviously the H2 capacity increases there? Then secondly, there's obviously a lot of physical capacity you've added. Could you talk about any challenges you might have recruitment-wise, supply chain-wise, to support that? What else you might need, please. Thank you.

Richard Paige: Morning, it's Richard Paige from Deutsche Numis. Just a couple from me, please. Freeburg H1 performance, it looks like the margins are significantly ahead of where we thought they might be. Could you just talk through that and obviously the H2 capacity increases there? Then secondly, there's obviously a lot of physical capacity you've added. Could you talk about any challenges you might have recruitment-wise, supply chain-wise, to support that? What else you might need, please. Thank you.

Speaker #4: Could you just talk through that? And obviously, there are capacity increases in the second half. And then secondly, there’s a lot of physical capacity that has been added.

Speaker #4: Could you talk about any challenges you might have recruitment-wise or supply chain-wise to support that, and what else you might need, please? Thank you.

Speaker #3: So I do feel good. Yeah. So, in terms of Freeberg, just to sort of remind you of the performance in '25, the business had a top line of about $31 million.

Chris McLeish: Shall I do Freeburg?

Chris McLeish: Yeah, go ahead. Yeah.

Chris McLeish: So in terms of Freeburg, just to remind you of the performance in the 2025 year, the business had a top line of about $31 million, and it made just over $5 million of operating profit. So that was essentially the last full year before our ownership. When we announced the acquisition of Freeburg, we really said, "Look, we expect that top line to grow perhaps 10% to something in the kind of $35 million region, and for the margin to remain at about 17% to 18%." So that was the assumption coming into the year. Now, what we've seen in Q2 was some very strong performance in the conversion of revenue into profit. So the margin was very strong, and it was up into that mid-20s territory. On a top line that was just over $10 million.

Speaker #3: And it made just over $5 million of operating profit. So that was essentially the last full year before our ownership. And so, when we announced the acquisition of Freeberg, we really said, look, we expect that top line to grow, perhaps 10%, to something in the kind of $35 million region.

Speaker #3: And for the margin to remain at about 17% to 18%. So that was the sort of assumption coming into the year. Now, what we've seen in the second quarter was some very strong performance in the conversion of revenue into profit.

Speaker #3: So, the margin was very strong, and it was up into that sort of mid-20s territory, and on a top line that was just over $10 million.

Speaker #3: So you can see that the runway has increased a little bit ahead of where we expected it to when we came into the year.

Chris McLeish: You can see that the run rate has increased a little bit ahead of where we expected it to when we came into the year, and at very good margin levels. As we look into H2, the way to think about the top line is that we expect that to accelerate. We are bringing on that Eloy, Arizona factory, and that is likely to mean that, in H2, revenue is likely to move up to a run rate that will give us around $25 million of revenue in H2. So when you add that to the 10 that was in H1 during our period of ownership, it takes it up to a top line of about 35 for the nine months.

Speaker #3: And at very good margin levels. As we look into the second half, the way to think about the top line is that we expect that to accelerate.

Speaker #3: We're bringing on that Eloy, Arizona factory, and that is likely to mean that in the second half, revenue is likely to move up to a run rate that will give us around $25 million of revenue in H2.

Speaker #3: So, when you add that to the 10 that was in the first half during our period of ownership, it takes it up to a top line of about 35 for the nine months.

Speaker #3: The margin will be lower because, essentially, you are bringing fixed cost into a business and then building the throughput of that factory over time.

Chris McLeish: The margin will be lower because essentially you are bringing fixed cost into a business and then building the throughput of that factory over time. So you get under recovered fixed cost in the near term, and so therefore that mid-20s margin is more likely to be in the mid-teens in H2 of this year. On a blended basis, that means we are likely to be 18% to 20% or so margin for the nine months as a whole. But I think, as we look into next year, we expect the stabilization and the full commissioning of Eloy to benefit the business, and therefore we would expect to move the top line forward such that, the way to think about it for next year is perhaps Freeburg delivering up to $60 million of revenue for a full 12-month period.

Speaker #3: So you get under-recovered fixed cost in the near term, and so, therefore, that sort of mid-20s margin is more likely to be in the mid-teens in the second half of this year.

Speaker #3: On a blended basis, that means we're likely to be at kind of 18% to 20% or so margin for the nine months as a whole.

Speaker #3: But I think as we look into next year, we expect the stabilization and the full commissioning of Eloy to benefit the business, and therefore, we'd expect to move the top line forward. So, the way to think about it for next year is perhaps Freeberg delivering up to $60 million of revenue for a full 12-month period.

Speaker #3: And we'd expect margins to sort of stay at least at that group target level of 18% or so. So we feel really good about it—the integration has gone well.

Chris McLeish: We would expect margins to stay at least at that group target level of 18% or so. So we feel really good about the. The integration has gone well. The Eloy commissioning is on track, and I think the demand outlook for that business, it is data centers, but it is a number of other diversified attractive end markets, looks very, very positive as well. So we feel really good about the medium-term prospects for Freeburg.

Speaker #3: The Eloy commissioning is on track, and I think the demand outlook for that business—it's data centers, but it's a number of other diversified, attractive end markets—looks very, very positive as well.

Speaker #3: So we feel really good about the medium-term prospects for Freeberg.

Speaker #1: And talking about capacity, indeed, quite a lot of physical capacity. And we want to make that work, so we need people for that. That's clear.

Rutger Helbing: We talk about capacity indeed, quite a lot of physical capacity. We want to make that work, so we need people for that. That is clear. I think if you think about Columbus, the extension we do there, we clearly are successful there and operating in our current business. So I think we feel pretty confident we can get the right people in. I think, yes, recruitment is always a little bit of a challenge. Now, the interesting thing, this is why I talked about how can you get more capacity in the utilities? You can do more shifts as well, but if you have more space, you can probably, first of all, go back to a full day shift, but have more weld stations, and it is easier to recruit people for that.

Speaker #1: I think if you think about Columbus, sort of the extension we do there, I mean, we clearly are successful there and operating in our current business.

Speaker #1: So, I think we feel pretty confident we can get the right people in. I think, yes, recruitment is always a little bit of a challenge.

Speaker #1: Now, the interesting thing—and this is why I talked about how you can get more capacity in the utilities—you can do more shifts as well.

Speaker #1: But if you have more space, you can probably, first of all, go back to a full-day shift, but have more weld stations. And it's easier to recruit people for that.

Speaker #1: So, we have different tools to be able to get those people in. And this is why you grow into the capacity. We'll probably look at slightly different shift patterns, to make it more attractive—so that we can do that when we have the physical space.

Rutger Helbing: We have different tools to be able to get those people in, and this is why you grow into the capacity. We will probably look at slightly different shift patterns to make it more attractive. But we can do that when we have the physical space.

Speaker #4: Thank you.

Richard Page: Thank you.

Richard Paige: Thank you.

Speaker #5: Hey guys, I'm Jamie Murray from Bank of America. A couple of questions—kind of similar to the Freeberg question, I suppose. On slide 12, you outlined that the data center share of revenue has nearly doubled to about 9%.

Jamie Murray: Hey, guys. Jamie Murray from Bank of America. A couple of questions kind of similar to the Freeburg question, I suppose, but on slide 12, you outlined that data center share of revenue has nearly doubled to about 90%, so clearly a meaningful part of the portfolio. I was just going to ask, firstly, if you could just provide some further color on what type of products and services you provide for the data center, maybe excluding Freeburg. Second is, how do you see that growing over the next six to 12 months, including the new facility from Freeburg? Then third is just how much visibility you have with the data center clients, and how much is contracted. Thank you.

Speaker #5: So, clearly, a meaningful part of the portfolio. I was just going to ask, firstly, if you could provide some further color on what type of products and services you provide for the data center.

Speaker #5: Maybe excluding Freeberg. Second is, how do you see that growing over the next 6 to 12 months, including the new facility from Freeberg? And then third is, just how much visibility do you have with the data center clients?

Speaker #5: And how much is contracted? Thank you.

Speaker #1: Okay, lots of questions. I'll give it a go. And so, in terms of products— and it differs whether you're in the US or in the UK now.

Rutger Helbing: Okay, lots of questions. I will give it a go. In terms of products, it differs whether you are in the US or in the UK and Ireland. So the UK and Ireland, it is very much at the moment sort of perimeter fencing for data centers. They are highly engineered, which is why they are more attractive. Our Floor Access solutions, where we see an opportunity, but there is more to do, although Hentech is already in there. Those are sort of the main products I would say in the UK and India. In the US, at the moment, it is pipe support is going in there, so we are seeing some good growth in our pipe support business. Galvanizing is where we go into it, and maybe some of the smaller parts and composites we can do as well. So there is a mixture of what we can do.

Speaker #1: And so, in the UK and Ireland, at the moment it's very much sort of perimeter fencing for data centers. They're highly engineered, which is why they're more attractive.

Speaker #1: And our floor access solutions, where we see an opportunity, but there’s more to do, although Hentech is already in there. So those are sort of the main products, I would say, in the UK.

Speaker #1: And in the US, at the moment, it's pipe supports that are going in there. So we've seen some good growth in our pipe support business.

Speaker #1: Galvanizing is where we go into it, and maybe some of the smaller parts and composites we can do as well. So, there's a mixture of what we can do.

Speaker #1: Clearly, with Freeberg coming on stream, at the moment, it's modest. That percentage is going to increase because a lot of Freeberg's growth is going to come from data centers at the start.

Rutger Helbing: Clearly with Freeburg coming on stream, at the moment it is modest. That percentage is going to increase because a lot of Freeburg's growth is going to come from data centers at the start. We think that over time, Freeburg's revenue split might be about 50% data centers. So that will increase that percentage for the US. It is a mixture of. But I think it is important to say that, yes, we are benefiting from the data center markets, but in the US, a lot of the growth is still coming from that T&D that we talked about. In terms of visibility, I think we have got both in TPG and in Freeburg in particular, pretty good visibility, in the next two to three years of what is available. Yeah.

Speaker #1: So we think that, over time, Freeberg's revenue split might be about 50% data centers. So that will increase that percentage for the US. So it's a mixture, but I think it's important to say that, yes, we are benefiting from the data center markets.

Speaker #1: But in the US, a lot of the growth is still coming from that T&D that we talked about. And in terms of visibility, I think we've got both, in sort of TPG and in Freeberg in particular, pretty good visibility.

Speaker #1: It's sort of in the next two to three years, of what's available. Yeah?

Speaker #5: Excuse me, it's Harry Phillips of Pearl Harbor. Just to touch on that last point from Jamie—just to clarify, that's two to three years' visibility on that sort of data center element in, was that correct?

Harry Philips: Excuse me. It is Harry Philips of Panmure Gordon. Just actually on that last point from Jamie, just to clarify, that is two to three years visibility on that data center element. Was that correct?

Harry Philips: Excuse me. It is Harry Philips of Peel Hunt. Just actually on that last point from Jamie, just to clarify, that is two to three years visibility on that data center element. Was that correct?

Speaker #1: In Freeberg.

Speaker #5: Perfect. Yeah, just three questions also, please. Just on galvanizing, just wondering where your sort of market share might be sitting. I appreciate there's sort of a regional aspect to it.

Rutger Helbing: In Freeburg.

Harry Philips: Perfect, yeah. Just three questions also, please. Just on galvanizing, just wondering where your market share might be sitting. I appreciate there is a regional aspect to it, but just wondering, I mean, someone put it to me today, if you are making margin, and this is an argument that has been put forward on Hill & Smith many times before. If you are making this amount of money in galvanizing, therefore you must draw people in. So what maybe as a reminder, what are the barriers to entry, moats, whatever element you want to think about in galv. Then secondly, just in the composite chat, you talked about a slightly adverse mix. Just wondering the dynamics behind that, and is that just how it happened in the half, or is there a structural change occurring there?

Speaker #5: But just wondering, I mean, someone put it to me today—if you make it, if market—and this is an argument that's been put forward on Hill's many times before.

Speaker #5: If you're making this amount of money in galvanizing, therefore, you must draw people in. So, maybe as a reminder, what are the sort of barriers to entry, moats, whatever element you want to think about in galvanizing?

Speaker #5: Then secondly, just in the composite chart, you talked about a slightly adverse mix. Just wondering about the dynamics behind that, and is that sort of just— it is just a sort of how it happened in the half?

Speaker #5: Or is there a sort of structural change occurring there? And then finally, just coming back to the sort of restructuring costs and what have you—

Harry Philips: And then finally, just coming back to the restructuring costs and what have you, and the level of exceptionals. Beyond normal amortization and stuff, should there be any exceptionals in the H2 in a meaningful sense, please?

Speaker #5: And the level of exceptionals. Beyond normal amortization and stuff, is there should there be any exceptionals in the second half in sort of a meaningful sense?

Speaker #5: Please.

Speaker #1: Okay. The exceptionals, I think I'll leave to you. It's too complicated for me. But if you think sort of in galvanizing, yes, we've always talked about the regional market share being important, right?

Rutger Helbing: Okay. The exceptionals, I think, I will leave to you. It is too complicated for me. But if you think in galvanizing, yes, we always talked about the regional market share is important, right? Because we always say it is about 200 miles radius that you need to be within to be able to deal with the market. And so where we have galvanizing plants and you take that radius, then our estimate is that we have like 50% or 60% market share in the US. And I think, and that is either stable or increasing as we speak. Your point about the barriers to entry, I think, because, yes, on the face of it is fantastic business, but it is not easy to get to those margins, right?

Speaker #1: Because we always say it’s about a 200-mile radius that you need to be within to be able to deal with the market. And so, where we have galvanizing plants and you take that sort of radius, then our estimate is that we have like 50 or 60% market share in the US.

Speaker #1: And I think that is either stable or increasing as we speak, yeah? Your point about the sort of barriers to entry—I think because yes, on the face of it, it's a fantastic business.

Speaker #1: But it's not easy to get to those margins, right? It's not like every—so when we look at, like, mom-and-pop shops, let's say, in galvanizing, they make a lot less margin, right?

Rutger Helbing: It is not like every. So when we look at mom and pop shops, let us say, in galvanizing, they make a lot less margin, right? Because they are not as good as we are in operational excellence in running these plants. We are also, and this comes back to the 70% to 75% capacity utilization. We are very customer focused and very quick and agile for our customers, and of course, we price that in. So I think, it is not a given that you can make those margins that we have. And the other thing is, it is, once you put in a new site, it is not cheap necessarily. And you need to have baseline customers basically. And so as a new entrant, you will really struggle with that.

Speaker #1: Because they are not as good as we are in sort of operational excellence in running these plants, yeah? We are also—and this comes back to the sort of 70 to 75% capacity utilization.

Speaker #1: We are very customer-focused, and very quick and agile for our customers. And, of course, we price that in. Yeah? So I think it's not a given that you can make those margins that we have.

Speaker #1: So, and the other thing is, once you put in a new site, it's not cheap necessarily. And you need to have baseline customers, basically.

Speaker #1: And so, as a new entrant, you will really struggle with that. So I think there are lots of reasons to say, and we haven't seen new entrants.

Rutger Helbing: So I think there are lots of reasons to say, and we have not seen new entrants coming into in the market, because it is not so easy. And I do not think we should be complacent or anything like that, but I think there are very good reasons to say why we think this is pretty, there are pretty high barriers to entry. On the composites, I think it is more of a point in time. We had fantastic. We, last year, ended up, and it is utility poles that is a bit more up and down, and we have talked about how attractive and also growing market that is. But the timing of those orders, they can change a little bit over the year, and we had a fantastic year-end last year, if you remember, and then, okay, maybe, but that is not something fundamental that we are worried about.

Speaker #1: Coming into the market, because it's not so easy, yeah? So, I don't think we should be complacent or anything like that. But I think there are very good reasons to say why we think there are pretty high barriers to entry.

Speaker #1: On the composites, yeah, I think it's more of a point in time. We had a fantastic last year, ended up—and it's utility poles that are a bit more up and down.

Speaker #1: And we've talked about how attractive and also how fast-growing that market is. But the timing of those orders—they can change a little bit over the year.

Speaker #1: And we had a fantastic year-end last year, if you remember. And then, okay, maybe, but that is not something fundamental that we're worried about.

Speaker #4: And Harry, just in terms of the sort of cash costs that have changed in the UK group, the total kind of cash cost of restructuring is around $3 million.

Chris McLeish: Harry, just in terms of the cash costs of change in the UK group, the total cash cost of restructuring is around $3 million, of which around half was cash settled in H1, and about half of which will be cash settled in H2. All of that cost has been accrued for. So when you look at it from a P&L perspective, all of the cost associated with effecting that change is reflected in the H1 numbers, although some of the cash will actually flow out in H2. When you look at the economics of those changes, these are all about creating more resilient and more efficient platforms in the UK group.

Speaker #4: Of which, around half was cash-settled in the first half, and about half of which will be cash-settled in the second half. But all of that cost has been accrued for.

Speaker #4: So, when you look at it from a sort of P&L perspective, all of the costs associated with effecting that change are reflected in the first-half numbers.

Speaker #4: Although some of the cash will actually flow out in the second half. And when you look at the sort of economics of those changes, these are all about creating more resilience and more efficient platforms in the UK group.

Speaker #4: And so, therefore, the payback on that cost, if you like, is rapid. We think that has the potential to be accretive for margins to some extent in the second half of this year.

Chris McLeish: Therefore, the payback on that cost, if you like, is rapid, and we think that that has the potential to be accretive for margins to some extent in H2 of this year. But once we annualize that benefit in 2027, then we will start to see that benefit accelerate through.

Speaker #4: But once we annualize that benefit in '27, then we'll start to see that benefit accelerate through.

Speaker #5: Just a couple of questions from the online portal, one of which we've, I think, probably done enough on. But I'll read it anyway, and if you want to add anything further.

[Company Representative] (Hill & Smith): Just a couple of questions from the online portal, one of which we have, I think, probably done enough on, but I will read it anyway, and if you want to add anything further. So the first one is, good morning and congratulations for the results. Could you update us on the capacity expansion in the US across your different businesses? When do you expect capacity to come online? How constrained are you in the US regarding volume growth in H2 and early 2027? Anything Jens, you want to particularly add on that?

Speaker #5: So the first one is: Good morning, and congratulations on the results. Could you update us on the capacity expansion in the US across your different businesses?

Speaker #5: When do you expect capacity to come online? How constrained are you in the US regarding volume growth in H2 and early 2027? And I think you tend to want to particularly add on that.

Speaker #1: I think what we said is Galvanizing and Burton are sort of coming online at the end of this year, and Emma Scogby is at the end of next year.

Rutger Helbing: I think what we said is Galvanizing and Burton are coming online at the end of this year, and Muskogee is at the end of next year. We feel with this capacity we can deal with the demand that we are facing.

Speaker #1: And we feel, with this capacity, we can deal with the demand that we're facing.

Speaker #5: And the second question is a question for Chris. Can you please give an update on the US private placement that was due to expire this year?

[Company Representative] (Hill & Smith): The second question is a question for Chris. Can you please give an update on the US PP that was due to expire this year? Has it been extended? If so, what tenure and interest rate was it secured at?

Speaker #5: Has it been extended? If so, what tenure? And what interest rate was it secured at?

Speaker #4: Yeah. So just to remind everyone, we had two tranches of USPP, each of which was $35 million. The first tranche did mature in the middle of this year.

Chris McLeish: Yeah. Just to remind everyone, we had two tranches of US PP, each of which was $35 million. The first tranche did mature in the middle of this year. So in June, that was repaid. Essentially now what we have is $35 million of PP that matures in 2029, and we have a GBP 300 million RCF. We talked about having over $340 million of available funding. Essentially, that is the firepower that we have. We have not gone back and rolled that PP over. As you can imagine, as we think forward, and given the conviction that we have in the investment opportunities in the business, we will come back to the question of financing and the balance sheet in due course. But we are certainly comfortable that we do not have a constraint from an availability perspective on the balance sheet going forwards.

Speaker #4: So in June, that was repaid. So, essentially, now what we've got is £35 million of PP that matures in 2029, and we've got a £300 million RCF.

Speaker #4: Which provides — we talked about having over $340 million of available funding. So essentially, that is the firepower that we've got. We haven't gone back and rolled that PP over.

Speaker #4: But as you can imagine, as we think forward, and given the conviction that we've got in the sort of investment opportunities in the business, we'll come back to the question of financing and the balance sheet in due course.

Speaker #4: But we're certainly comfortable that we don't have a constraint from an availability perspective on the balance sheet going forward.

Speaker #5: Thanks, Chris. Any final questions in the room? Ruka?

[Company Representative] (Hill & Smith): Thanks, Chris. Any final questions in the room?

Speaker #3: Hey, well, thank you very much.

Rutger Helbing: Well, thank you very much.

Speaker #4: The best. Thanks.

Chris McLeish: Thanks.

Rutger Helbing: Yeah.

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