A strategy for shareholder value creation

The degree to which our business platforms align with the Group’s Purpose, strategy and culture, will strengthen the stability and sustainability of our earnings growth as our target markets turn positive.

Our strategic progress has brought our business platforms closer to the aspirations of our New Strategic Future plan. Beyond market and regional diversification, and offering services across the project value chain, strategic maturity is a measure of their ability to consistently deliver safe, well executed and profitable projects. The Group’s governance and management systems, and disciplined approach to managing complex risks, especially those associated with large lump sum projects, support our ability to create shareholder value over the longer term.

Strategic themes Corporate actions Key objectives FY22 FY23 FY24 Risk drivers Link to material issues
STRATEGY EXECUTION AND DELIVERY   Strategic focus
  • Ensure delivery of clear medium-term business plans across our platforms.
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  • Vulnerability to macroeconomic factors.
  • Group liquidity.
  • Capitalising on the recovery of energy markets.
PROJECT RISK
  • Uncertified revenues.
  • Strategic maturity
  • Contractor of choice
  • Employer of choice
  • Support platforms in resolving potential project resourcing constraints to growth.
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  • Expand existing operations into high-growth regions.
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  • Close-out Middle East claims.
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Mergers and acquisitions
  • Identify acquisitions to sustain and diversify earnings growth, deepen capacity and specialism, and support expansion in developed markets and higher-margin segments.
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OPERATIONAL PERFORMANCE   Performance management
  • Ensure accountability for the standards, systems, practices and reporting of Engineered Excellence.
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  • Vulnerability to macroeconomic factors.
  • Group liquidity.
  • Capitalising on the recovery of energy markets.
OPERATIONAL RISKS
  • Health, safety and environmental exposures.
  • Community and industrial unrest.
  • Project delivery.
PROJECT RISKS
  • Project losses.
  • Uncertified revenues.
  • Contractor of choice
  • Employer of choice
  • Corporate culture
  • Maintain excellence in project planning, contracting and delivery to manage heightened commercial and execution risk and optimise earnings potential.
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  • Accelerate platform digital strategies to improve project design, safety, accuracy of execution and reporting, to improve margins and drive market share.
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  • Achieve ROICE targets and earnings guidance.
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  • Achieve target overhead costs through the cycle.
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OPTIMAL CAPITAL STRUCTURE   Balance sheet management
  • Manage short-term liquidity constraints as project activity ramps up.
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  • Group liquidity.
PROJECT RISK
  • Uncertified revenues.
  • Strategic maturity
  • Target appropriate gearing level to support sustainable growth.
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CASH RETURNS TO SHAREHOLDERS   Dividend policy
  • Resume annual dividend and supplement from time to time with a special dividend.
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  • Group liquidity.
  • Strategic maturity
SHAREHOLDERS   Shareholder engagement
  • Secure support from shareholders on strategy and value proposition.
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  • Vulnerability to macroeconomic factors.
  • Group liquidity.
  • Strategic maturity
  • Continuously improve ESG performance and reporting to meet and exceed industry benchmarks.
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