Operational Review

Although operating at 80% of capacity, due in the main to the slippage on the White City Shopping Centre development, our London operations contributed a  very strong performance as a result of successful completions and a better  quality order book. In the regions most companies performed well. The problems  in two regions (Preston and King's Lynn), which we referred to at the interim  stage, have since been addressed by management changes, the strengthening of  reporting procedures and controls and the close supervision of specific contracts. The board is confident that all regions will show positive results
going forward.