Stuart Togwell: Good morning, everyone. Tom and I are excited to be taking you through excellent set of results and introducing our new strategy. Welcome to you all, be it those here in person or online. And I'm delighted also to be joined by members of our executive team, as these results and strategy are, of course, a team effort. I'm proud to be leading Kier at this time and excited about how we shift from recovery to value creation. Last year, I spoke about the need for Kier to evolve. This year, I want to show how far we have progressed and how that progress puts us in a strong position to deliver consistent, sustainable growth. It was really important to me as a new Chief Exec that we delivered on '26 as we evolved, and we did. Kier delivered both a strong '26 performance. Revenue up 7.5%, adjusted operating profit up by 6.7%, framework access up by GBP 50 billion and monthly net cash up GBP 60 million. We did that whilst we evolved into a simpler business model through the seamless transition of two divisions into one infrastructure powerhouse and the adoption of our Justice Blueprint into Defense and Health. A new management team is in place whilst we delivered average net cash for the first time in a decade and strengthened our cyber protection and digital capability, all of which I believe are increasingly important in the delivery of sustainable growth. Now Kier is being recognized externally for its leading performance, including social value and creating employment and being reported as one of the best places to work. Finally, to deliver this level of change and to report that '27 earnings are expected to be at the top end of the Board's prior expectations is outstanding, and why I'm confident this team can deliver on our new strategy. The scale of opportunity in economic and social infrastructure delivered through long-standing customers who value Kier's capability represents a compelling opportunity to drive long-term value for the group. To capitalize on this, we've identified three strategic priorities. Growth. There is a generational significant investment cycle in U.K. infrastructure, supported by strong underlying trends across markets. So we are simplifying the business to focus on our core infrastructure and construction divisions to capture that opportunity. In terms of resilience, our customer mix, disciplined bidding and approach to risks contributed to our milestone net cash position in full year '26. And we will continue to strengthen the balance sheet, targeting more than GBP 200 million of average net cash by full year '29. Performance, a simplified model at scale with a stronger balance sheet and productivity will deliver a medium-term plan of mid-single-digit revenue growth at a margin of 4% to 4.5% and a double-digit EPS CAGR, I'll say it again, and a double-digit EPS CAGR. Before going further, there is an important strategic decision regarding our property business that I want to share with you. We have decided not to invest in new property developments, and instead, as each existing development comes to market, we will return capital to the group's balance sheet. This will be managed through a runoff process, balancing timing and value realization. I will return shortly to provide more detail on the strategic rationale for the property capital reallocation and discuss our strategy. But first, hopefully, Tom can stand. I will hand over to Tom to take you through the full year '26 financial highlights. Good luck, Tom.
Thomas Hinton: Good morning, all. I'm delighted to be presenting Kier's full year '26 financial highlights. It's been an excellent year for Kier, which we've delivered strong growth in revenue and profits and continued order book momentum and a full year average net cash position. And I'll go into all of these in more detail now. Revenue in FY '26 grew to GBP 4.4 billion. It's up 7.5% on the prior year, and it's continuing a strong period of successive year-on-year growth in our top line, which has seen Kier's revenue grow by 1/3 since 2022. You can see the top left-hand box here. High-quality profitable growth is underpinned by a high-quality, well-bid and commercially selective order book. Such, we're pleased to see continued momentum in this measure, which grew 8.2% year-on-year. It's now a record GBP 11.9 billion as of the 30th of June. This order book growth is a direct result of Kier's leading positions across more than 120 frameworks. It's a particular strength of Kier, and Stuart will bring it to life later. Casting your eye now down to the bottom three boxes, you can see the quality of Kier's recent growth with strong flow-through of revenue to adjusted operating profit and then to earnings per share. So we have an AOP of GBP 170 million in FY '26, representing a 6.7% increase year-over-year. We consolidated our AOP margin of 3.9% and subsequently, adjusted EPS grew by 8.8%, reflecting both the strong operational performance and the impact of the two recent share buyback programs. Our revenue and profit growth is also felt in our cash position, where the strong cash generation is a defining characteristic of the business. During FY '26, we generated GBP 206 million of operating free cash flow and GBP 165 million of free cash flow, which represented a year-on-year increase of 6.2%. And it's this cash-generative nature of the business, which has allowed us to further strengthen the balance sheet and distribute capital to shareholders. Since 2022, Kier has generated more than GBP 650 million of free cash flow. And it's this free cash flow that's been fundamental to the sustained improvement in the group's average net cash position, which has been transformed over recent years from a significant net debt position to a positive and growing net cash position. The group achieved an average month end net cash position of GBP 11 million in FY '26, up GBP 60 million from an average net debt position in FY '25. And alongside this sustained strengthening of our balance sheet, we have maintained and enhanced shareholder distributions through the dividend and share buyback program. I'm pleased to announce that the Board has approved a final dividend of 5.2p per share, taking the full year dividend to 7.8p. This is an 8.3% increase on FY '25. During the year, we concluded the group's first GBP 20 million share buyback, repurchasing just under 11 million shares within the GBP 20 million allocation. And in March, we launched a second GBP 25 million buyback, which as of the 30th of June has seen just under 4 million shares repurchased. We expect the program to be completed by the end of the calendar year '26. And we continue to see share buybacks as an important option for enhancing shareholder returns. We'll cover that approach to capital allocation a little bit later in the presentation. Now staying on cash, let's dive into it in a little bit more detail. So the group's closing cash stood at GBP 232 million, the right block at the 30th of June, a year-on-year increase of 14%. So I'll walk through from left to right and pull out a few of the key drivers, which have contributed to this strong year-end cash position. So firstly, the group produced GBP 106 million of operating free cash flow. It's a cash conversion yield of 121%, well ahead of our 90% target of operating free cash flow conversion. The strong cash performance was driven by GBP 236 million of EBITDA and a small working capital inflow of GBP 10 million, less around GBP 65 million of CapEx, which includes the capital payments on finance leases. After the net interest payments of GBP 33 million and the tax payments of GBP 8 million, the group generated free cash flow of GBP 165 million. Our adjusting items here relate to fire and cladding remediation costs, which are in line with our expectations and previous guidance. You can see in FY '26, we invested GBP 22 million in our property JV businesses, down from GBP 51 million in FY '25. Next step along, you see we paid cash dividends of GBP 34 million during the period and then GBP 22 million of share buybacks, which, as mentioned, included the completion of the first GBP 20 million and the commencement of the latest GBP 25 million share buyback program, which we launched in March. So at the half year, I was pleased to report an average net cash position for the first 6 months of FY '26. And I'm delighted to announce that for the full year, we achieved an average net cash position of GBP 11 million. It's a significant milestone for the group, the first time since 2012 that the group has achieved an average month end net cash position for the full year. This transformation of the group's financial position from net debt to net cash has only been made possible by the quality of our core divisions, which have track records of multiyear growth and high levels of cash generation. So I'll now turn to look at the FY '26 performance by division. So as you can see, our core powerhouse businesses of infrastructure and construction both demonstrate strong momentum. Infrastructure delivered an excellent performance in FY '26 with 10% growth in revenues and 16% increase in adjusted operating profit, representing an AOP margin of 5.5%, up 30 basis points on FY '25. This standout performance was led by our water business, which continues to benefit from the ramp-up of the AMP8 investment cycle. Alongside this has been good performance in rail as the sector transitions to Control Period 7. Construction delivered a strong performance in FY '26, reaching nearly GBP 2 billion of revenues, up 4% year-on-year and maintaining its top end industry margin of 3.9%. The business benefited from a second half that saw the ramp-up of work at HMP Glasgow to full delivery phase. Our regionally focused businesses continue to build on their market positions, particularly in the education and defense, where our framework positions are critical for success. And Stuart will talk more about the breadth of capability and credentials in that segment in a moment. Turning now to our Property business. And this continues to be impacted by a subdued market, reflecting the wider macroeconomic turbulence as the division generated revenue of GBP 63 million, AOP of GBP 9 million and a ROCE of 4.3%. And against this challenging backdrop, the business has made good operational progress during the year. Planning has been secured on around 80% of projects, including around 5,000 residential units. We secured tenancy or actively marketing on four projects, including 270 residential units that are prefunded. So as we progressed into the first quarter of this fiscal year, we're seeing continued strong momentum, and I'm pleased to provide the following outlook and guidance for FY '27. Recent significant contract awards and continued growth in the group's order book and further expansion of our pipeline gives us a high degree of visibility into FY '27. As such, we've got confidence in FY '27 adjusted earnings per share, and we will be at the top end of the Board's expectations. Now moving on to our strategy. Stuart has already laid out in broad terms the direction we're taking in regard to property. And I'll now hand back to him and cover in more detail the rationale and the road map for realizing and reallocating the capital currently invested in the portfolio.
Stuart Togwell: There are some seats at the front if anyone wants to take them. Okay. So next slide, please. Thank you. Thanks, Tom. Let's return now to the three strategic priorities I outlined earlier, which underpin our approach to long-term value creation to focus on growth in our core businesses, further strengthen the resilience of our balance sheet and drive performance through double-digit EPS growth. Just turning to property. The decision we have taken on property directly supports these priorities. It does allow us to focus resources on our core growth businesses where we see the strongest opportunities to create long-term value, namely infrastructure and construction. As capital is returned from the existing property portfolio, it will strengthen the balance sheet and over time, will also reduce the impact of more volatile transactionally led earnings and give us greater optionality over future capital allocation decisions. In terms of timing, I can confirm the following. From this point, we will not invest in any new property developments. Existing programs will continue to be delivered as planned, working with our partners to protect value and ensure continuity. As a result, total capital employed in property is expected to peak in December this year. We then expect to realize approximately the first GBP 150 million of capital over the next 3 years as individual developments mature and come to market with that capital reallocated to further strengthen the group's balance sheet. I'll return now to focus on one of our three priorities, that's growth before Tom will elaborate further on resilience and performance. So why am I confident in our ability to grow? Well, we now have two powerhouse divisions in Infrastructure and Construction, both with the scale, capability and market positions to capture the opportunities ahead. They are operating from an established platform that is already growing with existing customer relationships and long-term framework positions. We already have 3 years of work through our order book and PCSA and ECIs, secured on the same disciplined approach to risk that has underpinned our recent performance. We are active in sectors where there is clear visibility of work over, I think, the next 10 to 15 years, giving us confidence in the depth and duration of the opportunity. Four of our existing sectors, water, energy, defense and health care, provide material opportunities for growth, supported by structural demand and Kier's proven delivery capability and comfortably cover any rundown from HS2 and Justice. Just turning to water in a bit more detail. We are aiming to double our existing revenue from GBP 400 million to GBP 800 million by '29. We have strong visibility over a growing market for the next 15 years. That confidence is underpinned by a position on 10 of the 12 major water frameworks, long-standing relationships with the Environment Agency and the Canal & River Trust and hard to replicate credentials in the sector. Definitely, the structural trends are clearly supportive even before allowing for potential AMP9 growth and major projects such as the strategic reservoir options. Our order book has grown to GBP 1.4 billion. We have visibility over GBP 3.5 billion of additional work in our pipeline. We have a strong delivery platform with around 140 live projects, more than 100 projects in early contractor involvement, and we have approximately 150 in-house water and mechanical and electrical specialists. In Energy, we are aiming to more than double our existing revenue from GBP 170 million to GBP 400 million by '29. Energy is a multi-decade growth sector, and Kier has hard to replicate credentials that position us well to capture that opportunity. Our growth currently is supported by the nuclear work visible within our order book of GBP 680 million, GBP 3 billion of frameworks and GBP 900 million of pipeline opportunities. There is further opportunity beyond that with the current quoted -- sorry, in those quoted figures, including Sizewell C and STEP and additional revenue I expect from complementary capability across construction and facilities management. This is a market with high barriers to entry driven by the key credentials of a Suitably Qualified Experienced Person, of which Kier have more than 400 in-house people. The STEP Fusion program was a massive win for us because it demonstrates our ability to act as a strategic delivery partner on nationally important mega projects. Longer term, I'm confident we can leverage our capability to grow our share of other energy sectors, including transmission, resilience, decarbonization and battery storage. In defense, we're also aiming to more than double our existing revenue from GBP 150 million to GBP 350 million by '29. Kier is strongly positioned to grow its share, supported by our frameworks with both the MoD and defense primes over the next 10 years. Our '29 revenue target is already supported by the current order book of GBP 300 million, the PCSAs of GBP 500 million and GBP 11 billion of framework opportunities, of which we can already see GBP 7.1 billion of pipeline to bid. Our credentials, again, are hard to replicate, in particular, in security as more than 700 of our people have the necessary security clearance to work behind the line. And in our design because of our recent awarded Secure by Design accreditation. So I'm confident growth in a sector that has been previously hard to grow because the new MoD alliances are adopting principles from our Justice Blueprint. Looking ahead, defense represents a very significant further opportunity across both infrastructure and construction, including facilities management. Okay. In health care, we are aiming to grow by 50% from GBP 170 million to GBP 250 million by '29. Health care represents at least a 10-year opportunity, and we are well positioned for our role as an alliance partner on key frameworks. Because of this, we can see further growth coming after '29 from an order book of GBP 600 million, framework access of GBP 57 billion and known pipeline currently of GBP 12 billion. Again, our technical expertise is hard to replicate. In particular, I'd point to our in-house M&E and hospital FM capability, both are differentiators in this sector. Hinchingbrooke Hospital is a good example of this. We targeted and secured the opportunity for a New Hospital Programme because of our existing FM contract performance with that hospital.. Now just moving on to differentiators. Many of you in this room have asked me over the last year, what really differentiates Kier. So today, I want to set out the strengths I believe already distinguish us before going through a few of them in a bit more detail. Kier has a best-in-class capability in securing renewed frameworks across the U.K. This framework strength underpins the quality and visibility of our order book and pipeline and gives me confidence that growth will continue to be secured with the same disciplined approach to risk. Of the GBP 200 billion of frameworks available to us, this slide shows that a substantial proportion of these are aligned to our key sectors, importantly, including the areas where we have seen the strongest growth opportunities. I also expect in time that central and regional frameworks to become increasingly important procurement routes after devolution. I wanted to bring our national scale and coverage to life. Our model gives us the breadth of resources and capability to meet customer needs across the U.K. Our national approach provides consistent delivery, while our local presence gives us the insight and relationships needed to meet customers' social value priorities. We can also move resources quickly to where demand is strongest, giving customers confidence that we can respond at scale. In many regions, the scale of our local business is larger than the total revenue of some of our competitors, which gives us both reach and resilience. Moving on to end-to-end capability. Delivering value for money and social value are becoming increasingly important priorities for our customers. Kier is good at this because we can draw on our end-to-end capability at scale across the U.K. The metrics on this slide demonstrate our breadth and depth, 800 people in design, more than 400 projects delivering GBP 4.3 billion of revenue and our facilities management business. This combined capability allows us to co-create solutions with customers that deliver outcome-led results. I would like to highlight the preconstruction phase because this is where we shine by shaping the right solution with customers, aligning scope, risk and value and setting projects up for successful delivery. Finally, I wanted to highlight our culture because it is one of Kier's most important differentiators. Our connected high-performing culture enables us to attract, develop and retain the talent we need to deliver the opportunities ahead. It creates alignment across the business, supports disciplined execution and gives our people a clear sense of purpose in the work we do for customers and communities across the U.K. That culture is a genuine source of competitive advantage. It is built over time through consistent behaviors, strong relationships and pride in delivery and it's not something that can be quickly or easily replicated. As we move into the next phase of growth, I believe it will be central to how we sustain performance and create long-term value. In short, our differentiators matter, our national scale, regional presence, end-to-end capability and connected high-performing culture gives us the agility to move resources to where demand is strongest, shape solutions, early win customers -- sorry, early with customers and continue to deliver with discipline as markets evolve. We are also building differentiators for the future, in particular, naturally digital, which I will bring back to you later in the year. So to bring this section together, I want to step back and just summarize why I'm confident in the growth opportunity ahead of us. We are operating in markets with long-term structural demand, clear customer need. These are essential sectors for the U.K., and they provide Kier with a significant accessible and enduring growth opportunity. That opportunity is reinforced by the strength of our framework positions with access to around, say, again, GBP 200 billion of frameworks, just in case you missed it, which is substantially aligned to our key sectors. It is also underpinned by favorable structural trends that are familiar to all of us from the need for investment in water and energy to national security, health care capacity and the wider renewal of U.K. economic and social infrastructure. The four sectors we have just discussed are expected to deliver around GBP 1 billion of revenue uplift over the next few years. Importantly, that growth is not dependent on a single market or a single client. It is supported by deep sector credentials, established customer relationships, disciplined bidding and ability to bring the breadth of Kier's capability to complex programs across the U.K. So that concludes my section on growth. I will now hand you back to Tom, who will take you through the two closely connected priorities that support and enable that growth, resilience and performance. Tom?
Thomas Hinton: Thanks, Stuart. So Stuart has covered the growth pillar of our strategy, the extent of the opportunity ahead of us. So I'm going to cover the other two pillars of our strategy, resilience and performance. So starting with resilience. What is it that gives us confidence in our ability to deliver sustainable growth? And it's in part due to the optimal mix of work across our customer types, our contract approach and our deep long-term relationships. So firstly, our order book, which is building year-on-year and now stands at GBP 11.9 billion. The order book consists of either secured or probable work and gives us substantial visibility of not just the current year, but also the following year. And that's before a considerable amount of the work, GBP 2 billion of which are in one-to-one customer discussions and that we expect to shortly join the order book. In fact, the GBP 500 million Hinchingbrooke Hospital award is one example that just missed the June order book cutoff. So our order book gives us confidence in FY '27 revenues with 95% cover for the following financial year. And in fact, the construction business is at over 100% -- at 100% cover for the coming 12 months. I didn't give you an extra target there, Martin. It's a great position for the business to be in. Moreover, more than 90% of the group's revenues come from repeat business, reflecting Kier's excellent customer delivery. Now in terms of the quality of our work, our commercial discipline means that 95% of our project revenues are now governed by contracts that are either cost plus where all costs are passed directly on the customer or two-stage where the opportunity for renegotiation protects our margin. This is, of course, a material improvement on where we were commercially just a few years ago. And lastly, in terms of assurance, almost 90% of our customers are either public sector or the regulated entities, as you can see on the right-hand side of the slide, removing much of the commercial volatility from our portfolio. Now still on the topic of resilience, let's look at how much capital we expect to generate in the next 3 years from our underlying cash flow. So in the period FY '27 to FY '29, we're targeting cumulative operating free cash flow of GBP 600 million to GBP 700 million on the left. During that same 3-year period, we expect to realize net capital of around GBP 150 million from the current property portfolio. Offsetting property capital against cash tax, interest payments and remaining cash outflows in respect to Fire and Cladding, we are left with a total allocatable capital of GBP 600 million to GBP 700 million, which is the middle block. And from that total allocatable capital, we will continue to prioritize our core CapEx and our growing ordinary dividend. So the residual, the GBP 450 million to GBP 550 million will be allocated in line with the group's capital allocation framework, which I look at now. So beyond the primary allocation for CapEx and dividend, the group will have the GBP 500 million, about GBP 500 million of capital to deploy in line with the hierarchy of uses in points 3 to 5 on this slide. So firstly, we want to strengthen the balance sheet. We are pleased with the substantial progress that's been made in recent years in this respect, and we've achieved the average net cash target -- of average net cash of GBP 11 million in FY '26, which, of course, was an important milestone. But over the medium term, we will focus on growing this further, reaching a target of more than GBP 200 million of net cash by FY '29, which will provide the group with additional resilience, capital optionality and continued balance sheet efficiency. We also have scope to consider selective value-accretive acquisitions in core markets as compelling opportunities arise, and that's point number four. Then subject to the above considerations and recognizing the role that share buybacks play in enhancing shareholder distributions, we will return excess capital via share buyback programs. So that covers our second priority of resilience, how we'll strengthen our balance sheet and enhance capital allocation options. So let's now turn to the third pillar, which is performance. And starting with the key metric of EPS more broadly, total shareholder returns. Driving EPS performance hinges on our two other strategic pillars of growth and resilience. Through growth, we are targeting a significant increase in AOP as we grow revenue through the considerable market opportunities that Stuart detailed, while simultaneously maintaining and augmenting our margin in the 4% to 4.5% range. And then secondly, through resilience and a stronger balance sheet, we will have the ability to repay our GBP 250 million bond. We, therefore, expect to see structurally lower net interest expense as the group's capital structure benefits from becoming debt-free. In FY '26, the group recorded net interest expense of GBP 35 million. We expect to see that rapidly fall in the medium term with significantly lower costs after we repay the 9% coupon bond. So these two drivers, AOP growth and lower interest costs give us the confidence to target EPS growth rate of greater than 10% CAGR over the medium term. And this is before the added benefit by a lower share count from any future share buyback programs. So as mentioned earlier, we will continue to prioritize the ordinary dividend. We see the combination of the sustainable dividend and strong double-digit EPS growth as providing a balanced and attractive combined total shareholder return. So looking more broadly at performance. Today, we are updating our medium-term targets across a full range of metrics reflecting the opportunity that we see for our business. So starting with revenue. We intend to grow the top line by mid-single digits each year, blending through the significant opportunities in the growth sectors such as water, defense, energy and health care that Stuart talked about earlier with our established businesses in our core markets. Next down, we retain our 4% to 4.5% margin target for adjusted operating profit. And that's enabled, as Stuart discussed, by our differentiated end-to-end capability. Now retaining the 4% to 4.5% margin target despite our strategic decision on property reflects our confidence in the core infrastructure and construction businesses and Kier's differentiated offering. So these top line and bottom line targets are key drivers of EPS, which we aim to grow at double digits. As already mentioned, we are targeting an average net cash position of GBP 200 million by FY '29, while continuing to deliver our cash conversion of over 90%. And finally, consistent with previous guidance, the group aims to grow the ordinary dividend in line with earnings and maintain the 3x cover. We see these medium-term targets as challenging, but we also see them as realistic. We also see delivering on these targets as a pathway to significant shareholder returns across the medium term. And I think truly delivering the performance component of the priorities for Kier. So on that note, I'll finally hand back to Stuart to wrap up.
Stuart Togwell: So good news is I've only got another 20 slides to go through. Okay. Thank you, Tom. Before we move to questions, I want to close today's presentation by bringing the investment case together, showing how the strengths we have discussed combined to create a compelling and differentiated proposition. Taken together, they leave Kier well placed to generate substantial value for our stakeholders through a stronger, more focused business. And there it is. So the opportunity ahead of us is significant. We are entering a once-in-a-generation investment cycle in U.K. infrastructure, reflected in the scale of the frameworks we have secured and supported by clear structural tailwinds across our key markets. Kier is exceptionally well placed to capture that opportunity given our leading positions in essential infrastructure and construction markets, our customer relationships and our disciplined approach to risk. Our financial profile is strong and improving. We are growing well, delivering a top-tier industry margin and continuing to generate significant cash. That gives us the resilience and opportunity to invest in the business, strengthen the balance sheet and create value for shareholders. We have a clear path to enhance returns over the medium term, underpinned by the strategic priorities we have set out today, namely growth, resilience and performance. The medium-term targets Tom outlined from mid-single-digit revenue growth to double-digit EPS CAGR demonstrates our confidence in Kier's ability to convert these opportunities in sustainable growth and improved shareholder returns. So as I reflect on my first year as Kier's Chief Executive, I am more confident than ever in the future of this business. We have strong foundations, a focused strategy, disciplined execution and leading positions in markets that are essential to the U.K. Together, these give us a firm platform to grow, increase returns and create lasting value for all of our stakeholders. So thank you very much for listening today, both here in the room and online. And we'll now be pleased to take your questions. Thank you.
Jonathan William Coubrough: Johnny Coubrough from Deutsche Numis. Thanks for the presentation. A lot to get excited about in there. Could I ask firstly on how you'll decide on the timing of things like buybacks? Because on Slide 30, I think the quantum where you set it out very clearly and the implication is there could be about GBP 100 million a year surplus for buybacks. But when you're looking at that decision each year, how you decide on it based on timing of capital coming out of property and when you might repay the bond?
Thomas Hinton: Yes. I think you explained it very nicely. So firstly, we're a very cash-generative business, and that comes across very nicely in Slide 30, where you can see the amount of cash that we're about to generate over the next 3 years. And as I tried to outline in the allocation -- capital allocation framework, our priority is we need -- we want to and we need to strengthen the balance sheet. So that's going to kind of help determine the pace at which we can do future either acquisitions or buybacks. So that's the kind of the determining factor, which is how fast the cash comes in through the core business and the pace at which we execute the kind of the sell-down of our portfolio. That can tell you how much cash we've got, and that's going to give us a good guidance of the pace at which we can do future buybacks.
Jonathan William Coubrough: And just a follow-up. I mean, in theory, it could be quite back-end loaded then in terms of the surplus capital generation. Would you then look for a return program to be a sustainable one as opposed to a big one-off lump sum?
Thomas Hinton: We haven't sat down and said, let's do a big lump sum buybacks at no point if we have that kind of conversation.
Jonathan William Coubrough: And then just last question would be on the timing of the bond repayment. And could that happen early? And if so, what would the benefit be to your LT...
Thomas Hinton: Back to the cash point. So we wouldn't look to make that repayment early. It's -- you could repay from March '28 should be a logical time to do it. And that's nicely in line with the capital being released from the property business.
Andrew Nussey: Andrew Nussey from Peel Hunt. A couple of questions as well, please. I guess, first of all, Infrastructure had a very strong second half performance, both from a revenue and in particular, margin performance. Water, you said has been an influence to that strength. Should we read into that then that water as a sector, given it's bringing in more Kier skills, is a higher margin opportunity than perhaps some traditional infrastructure sectors? So the first question.
Thomas Hinton: No, you can't make that assumption. So I mean, water is a strong margin business. It's a stronger -- it's a higher margin than, for example, in the construction business, it's in the middle of the pack of infrastructure margin.
Andrew Nussey: And secondly, in relation to water, just your ability to keep resourcing the opportunity there successfully given it's quite a supply chain constrained sector.
Stuart Togwell: So we always make sure that we don't take any work on unless we've got the resources to deliver it. We do have the benefit of that regional model. So we've got long-established relationships with key supply chain in those areas. And if there are major capital works, again, we have the ability to move resources from the mega projects to where they're needed most.
Andrew Nussey: And last question. I mean, a number of the growth ambitions stretch out to FY '29. If you had to add Hinchingbrooke into the order book, what level of visibility would you hazard for FY '29? In terms of revenue coverage? So greater than 95%.
Thomas Hinton: Well, for FY '28, we're at 70% and that kind of -- that trajectory kind of comes down. So if you look at '29, we'd be up early 50s, approximately.
Stuart Togwell: I'd go back to the -- if you look at the general order book is GBP 11.9 billion. If you look at the PCSA and ECI total of GBP 2 billion, you're looking at about 3 years' worth of work for there for us to convert and deliver. And then past that, you've got -- I think we've got about GBP 65 billion of pipeline opportunity. So they are tender opportunities. So they're either call-offs from existing frameworks, new frameworks or renewals or contracts that we can see. They generally take a time to win and convert, but they're looking at sort of 2 years a hence from that. 5 years' work.
Aynsley Lammin: Aynsley Lammin from Investec. I think I've just got two, please. First, just going back to the net cash, the average of GBP 200 million. Just interested how you arrived at that GBP 200 million number. Obviously, lots of work already in the pipeline, margin discipline. Do you need that much? Why wasn't there GBP 300 million or 100 million interest there? And related to that, if we were to think about average daily net cash, would there be a big difference between the month-end number, say, compared to GBP 11 million you just delivered? That's the first question. And then second question, just interested to hear your views on the overall health of the kind of supply chain at the moment, what you're seeing in build cost inflation, just some general kind of points there.
Stuart Togwell: I think you'll do the first one, I'll do the second one.
Thomas Hinton: Yes. So the GBP 200 million target. First thing I'd say it's definitely more of an art than a science. So if I could say it was exactly GBP 200 million or exactly GBP 250 million, it's certainly a range. And where do we arrive at that range? And kind of two ways of thinking about it. One is you need to be somewhere near your peer group. So if you look at my peer group, they will have much -- they have much more cash on the balance sheet. Now I think I don't want to go as far as some of them. They've got a lot of cash. And you look at the commentary on them, it can be more nice to have some of that given back to shareholders. But there is a point where we are an outlier in the group, and we do get a lot of noise around that. Now we don't get it from our customers, but we do get it from the investor community, look at us compared to our competitors and the other way of thinking about it is what's the size of your negative working capital, negative net working capital. And because we run large construction projects and we run our cash very, very well, our net working capital -- negative net working capital is about GBP 500 million to GBP 600 million. So that's money that we have with our customers that obviously doesn't sit on the balance sheet. So how do you support against that? Well, we've got a great order book, and we talked about GBP 12 billion of order book. And you think about GBP 12 billion of order book delivering a 4% margin, you've got about GBP 500 million worth of cash coming from the order book we can feel comfortable about that. But we want to have more against that negative working capital because it's our customer money. And that's why we kind of come to the conclusion of we'd like a bit more cash and GBP 200 million kind of gives you support against that, that negative working capital. So negative working capital hedge against the order book and that incremental cash, which helps us get to the GBP 200 million level, which is then about, what, 4% of revenue. So when you kind of triangulate those measures, you come to the art of about GBP 200 million, and that's how we come to that number.
Aynsley Lammin: And the average daily versus the average weekly?
Thomas Hinton: Yes. So I mean -- and that's the working capital swing that you get in the month. And that makes -- I look at our treasury over there, GBP 120 million to GBP 150 million difference per annum.
Stuart Togwell: And then supply chain. So we're definitely not immune in terms of what's going on in the market and the macroeconomics. But what we have is we've mitigated it, and we've mitigated that in a number of ways. Firstly, in terms of the sectors that we are in. So we purposely stayed away from pure housebuilding and high-end residential markets, which have been subjected to certainly in terms of high increases in terms of inflation and difficulty in the supply chain. Our management of risk. So Tom spoke about earlier in terms of either cost reimbursable contracts, which is about 60% and a further 35% through the two-stage. So we have a long period working with customers there in terms of working through design and agreeing who takes the risk on inflation. So that's 95% of our revenue. I think thirdly, I'll go back to our regional model, means that we are locally placed and have long-term relationships with the supply chain. So they prefer to work with us. They know us well. Our people know their people, and they trust in our ability to pay. So we get their trust and their reliability through that. So that's the way that we manage it. But we're not immune. Okay. 7 minutes left.
Adrian Kearsey: Adrian Kearsey, Panmure Liberum. The MoJ was a sort of good example of adopting collaboration. And in the presentation, there was a sort of few comments where it seemed to indicate that, that collaboration was rubbing off in other parts of your sort of other clients. Can you perhaps sort of give some examples of how that's evolved?
Stuart Togwell: Yes. So there are two particular clients that have researched that alliance model and gone on to adopt it because they see the benefits of collaboration, the MoD frameworks and the new hospital program. So the new hospital program is an alliance. They decided to go through a direct award allocation of projects rather than tendering call-off projects, which gave us the ability to position ourselves around the Hinchingbrooke Hospital, which I mentioned before that we've had a long-standing relationship with that client providing the FM facilities there. So we know the client well. They got to know us. So when it came to the allocation, we were allocated one of the first hospitals that came off the alliance. I'm looking at the MD behind you to make sure I said that right. Any more questions?
Stephen Rawlinson: Stephen Rawlinson from Applied Value. In terms of the margin accretion or the margin improvement, to what extent is that arising from a mix in the type of work you're doing -- because you said 800 people in design. I mean I don't know how you cost those into projects, which is one question. The second question is, are you expecting to increase that element of design in there such that actually we would expect margin accretion from that, possibly above 4.5%. But could you just talk us through that a little bit?
Stuart Togwell: If you can imagine the number of conversations Tom and I get together to get to 4.5%, and then we've already been pushing above it. Look, there is definitely an impact of mix. And I would point to the growth in infrastructure compared to construction and infrastructure generally has a higher margin. So we will get some benefit through that. You've got the runoff of property. We still have good returns from those projects. But the way I look at it rather than say one individual component of the mix, I would say in terms of it's the end-to-end capability that we have at scale that has got to drive productivity improvements as we grow. Certainly, in terms of our move around digitalization, we're seeing that we are quicker to make good decisions within the business, and that's got to drive some productivity going forward. So Tom and I are baking in some of those benefits in future years that we can see that should be there. But mix and scale, I'd say, are the two. In terms of design, I would point to the fact that don't just think it's restricted to only the 800 people in terms of what they do. What we have is the capability to manage all the design. So because we have that continuity of sectors, we do school after school, hospital after hospital, road after road, that inbuilt knowledge means that alongside our own designers, we know how to manage other design to make sure that we get the benefits out of it. We need to go online as well for questions. Just the time we just need to go back and see if there's anyone online that wants to ask any questions.
Operator: At the moment, we currently have no questions on the telephone lines.
Stuart Togwell: There we are. Good. Any final questions in the room?
Daniel Thomas Cowan: Dan Cowan from BNP Paribas. One question, please. Could you talk a little bit about what factors might drive cash flow conversion, please? You've just done 120% and your target is above 90%. So what drives that range, please?
Thomas Hinton: That was a very strong working capital in -- of our large construction projects. So when you have large construction projects, that can give you quite good incremental working capital at the beginning. And that's we can push it up quite high. So actually, we've got good working capital coming in for those large construction projects. The reality is that when you're at 121 one year, you've got to expect it to come down a bit kind of year after that. So we want to kind of keep it up at the 100% level. We set that target of over 90% but we're also conscious that there might be a bit of an outflow. We've got to manage on that when you have large working capital inflow. As we continue to grow, we are a negative working capital business. So as you grow, that keeps that working capital coming in and that kind of pushes it up.
Stuart Togwell: Okay. Okay. Again, I'd like to thank everyone that's joined us today, anyone on the line. Thank you very much.
