Summary

2007 was a year of good progress. Our core London operations turned in an excellent performance with several successful completions and a better quality of business during the year. The underperforming businesses in 2006 (Derby and Scotland) were successfully 'turned around' and both contributed good results.

The legacy issues and problem contracts in Preston and King's Lynn, referred to when we announced our interim results, have been addressed and we are confident that these businesses will show steady improvement going forward.

London Operations

Completions during the year included:

• 0₂ Arena
• RBS, Aldgate Union
• LUL sidings, White City

Current projects include:

• Westfield Shopping Development, White City
• BP2 Tower, Canary Wharf

Recently won contracts include:

• Ropemaker Place, London
• Central St Giles, London

UK Regional Businesses

Completions during the year included:

• Golden Jubilee National Hospital, Glasgow
• Marks and Spencer, Cheshunt
• Bishop Auckland College
• Huddersfield Media Centre
• Waitrose stores at Rickmansworth, Maidstone and Sandhurst.

Current projects include:

• Grand Arcade Shopping Centre, Cambridge
• Excelsior Academy, Newcastle
• Kent International Airport.

Recently won contracts include:

• Gloucester Quays
• CSA HQ Falkirk
• Aspire Defence, Tidworth Garrison
• Medway Council Offices, Chatham
• Waitrose stores at Kenilworth and St. Neots.

Properties

All properties are currently leased to group companies.