The Group employs around 5,500 employees and benefits from a strong client base and integrated supply chain, spanning both industries in which it operates.

Our Business Model & Strategy

On 21 February 2017, the Group published its strategy to 2021. All three businesses have clearly defined plans to improve operating efficiency and grow both margins and revenues, providing the Group with confidence in its ability to deliver further growth, even against a backdrop of low growth in the wider economy.

Over the next four years to 2021, our focus is on continuing to deliver sustainable growth and strong returns to shareholders. Our plans are founded on three strategic pillars:

1. Operate sustainably: Each business has set out three strategic priorities to deliver growth towards its medium-term financial targets in 2021. Underpinning these priorities is the Group’s recognition that longer-term value creation must balance financial performance with its obligations to all stakeholders, including clients, customers, employees and the communities and environment in which we operate.

2. Drive operating efficiencies: Across the Group there is an ongoing focus on streamlining and simplifying our operations to drive margin growth and enable us to respond faster to changing market conditions.

3. Maintain capital discipline: The Group is well financed having further strengthened the balance sheet to enhance resilience and flexibility.  We will remain prudent in our approach to capital management, and our target period-end gearing level remains below 30%.  We intend to continue to pay strong dividends, whilst maintaining an appropriate reinvestment in the growth of the business.

Summary Financial Targets to 2021

Our targets include 60% growth in profit before tax to FY 2021, a five year CAGR on dividend of at least 5% and a return on net assets in FY 2021 of at least 25%, whilst rebuilding dividend cover to 2.0x.  The specific strategic priorities and targets for each business, are summarised below, and can be seen in our strategy presentation from 21 February 2017.

Linden Homes FY21 FY16
Units (per annum) 4,750 – 5,000 3,078
Revenue £1.25bn - £1.35bn £0.8bn
Operating profit margin 19% - 20% 17.50%
 
Partnerships & Regeneration FY21 FY16
Units (per annum) 4,200 2,126
Revenue £650m £301m
Operating profit margin 6%-7% 3.90%
 
Construction FY21 FY16
Revenue £1.8bn £1.5bn
Operating profit margin >2.0% 1.10%
Cash £200m £161m


Please click here to view our Strategy 2017 – 2021 Presentation