Driving sustainable growth Review of performance 24
Our customers operate in a world of increasing change and ever-more complex challenges. We help them to successfully navigate complexity and unlock new opportunities. Our scientists, engineers and management consultants work with customers across the world to deliver the right solution to the right place at the right time. By embedding sustainability into the heart of our business, we are helping our customers make a positive difference, and securing our own future. Summary We are a maritime-orientated highend design house and technical consulting firm, driven by a passion for solving complex, real-world problems that matter. Our purpose is to help navigate some of the most important and impactful engineering challenges of our time, creating an environment where people with outstanding technical knowledge strive to deliver a safer, more efficient, more effective, and sustainable future. Our vision is to be a global leader in solving the most impactful engineering challenges of our time. With offices in North America, Asia, Australia and Europe, BMT is driven by a belief that things can always be better, safer, faster and more efficient. From initial concept through to design, construction, operation, and eventual decommissioning, we support customers at every stage of the project lifecycle. Performance highlights £23.8m Total profit before tax and profit sharing schemes 70% Total increase in profit before tax and profit sharing schemes 92% Increase in total distribution to employees in line with our status as an EBT. £100k+ Donated to our communities £178.9m Orders won 10% increase in total revenue (when compared to last year) £203.5m Total revenue £9.8m Total distribution to employees in line with our status as an employee benefit trust (EBT) 6% Increase in employee engagement score (when compared to last year) BMT Group Ltd | Review of performance 23-24 2 3
Chairman’s statement As outlined in more detail by Chief Executive, Sarah Kenny, our financial performance during the reporting period was strong, with double digit percentage increases in revenue (up 10%) and total profit before tax and profit sharing schemes (70%). It is even more pleasing to note that in all our sectors, service lines and geographies we made healthy progress, in many cases winning new projects from both existing and new customers. That this was achieved during a period of almost unprecedented political, economic and geopolitical uncertainty is a tribute to the leadership, and the commitment and skillsets of our people. I would like to thank them for not only helping to make BMT an increasingly successful business, but also in supporting our customers, who trust and rely on our insight and technical expertise to safeguard, improve and adapt vital services. Overview This year’s outstanding performance reflects the confidence that our customers continue to have in us, evidenced by our ability to secure larger, more technically challenging and longer-term contracts. It also reflects the confidence we have in our people, and highlights that by investing in them we can add even greater value for our customers. This in turn helps us to deliver on our purpose, which is to help navigate some of the most important and impactful engineering challenges of our time, creating an environment where people with outstanding technical knowledge strive to deliver a safer, more efficient, more effective, and sustainable future. Our continued focus on our four core offerings, delivered through our aligned regional businesses, has created additional value from the depth and breadth of a business portfolio which spans multiple sectors and geographies. Our diverse portfolio supports our resilience, because any slackening in demand in one sector or region can be balanced by growth in another, whilst also giving us access to opportunities across the world. We make the most of those opportunities by sourcing solutions from across our business, bringing best-in-class offerings to our customers, and providing opportunities for our talented people to work on projects that interest and challenge them. Overall, the prevailing trend of national governments strengthening their defence capabilities in response to an increasingly uncertain world, and organisations needing our services to navigate energy transition, optimisation and the rapid proliferation of digital technologies, and climate change, mean that we remain well-placed to support customers across all our regions. Outlook Our financial performance once again provides clear evidence that our strategy is delivering. As we continue to focus on, and invest in, the exciting growth opportunities that lie ahead, and strengthen our internal processes to win and deliver those opportunities more effectively, I believe we can look forward to further sustainable growth in the years ahead. We will, however, act with due caution as the business environment looks set to be impacted by greater than ever political and economic uncertainty. Board In my second year as Chair of BMT, I am pleased that the Board has built on the successful delivery of the strategy put in place by Sarah Kenny and her team to take us into our next phase of growth. The new additions to the Board, as detailed in last year’s review, have already proved their value and I’d like to take this opportunity to thank all Board members, old and new, for their contributions during the financial year. Another year of strong progress. Ian Tyler Chair of the BMT Board ‘We are delighted to see completion of this important milestone on schedule. We would like to acknowledge Navantia UK and BMT’s strong commitment to delivering an innovative and capable design, as well as their collaboration with DE&S. The Fleet Solid Support programme is on track to deliver highly capable ships for the Royal Fleet Auxiliary, and we look forward to the continued successful delivery in 2025.’ A MOD spokesperson BMT Group Ltd | Review of performance 23-24 4 5
respond more quickly to customer needs. Operationally, we continued to refine our processes and support functions to deliver better services at lower costs for customers. The successful roll-out of our global management information service helped us to deliver for customers by further streamlining and simplifying processes, and improving the quality of management information. Our strong financial performance enabled us to invest in areas such as ship design, autonomy and AI, which are crucial to our customers’ future success. Outlook We anticipate a mix of risk and opportunity ahead. From the relatively new UK government to the forthcoming elections in the USA, Canada and Australia, there is uncertainty not only about defence spending and its strategic direction but also in all areas of the economy amid rising geopolitical tensions. However, as an organisation dedicated to helping customers find ways through complex challenges, we believe we are well-placed to help navigate these complexities and are confident in our ability to support our customers. Our enhanced position on sustainability, alongside our increased focus on engaging with communities, positions us to understand the diverse concerns of all stakeholders. Additionally, our increased profitability will empower us to make the investments needed to help our customers. It is only right, however, to acknowledge the risks that lie ahead. A new ‘cold war’ age is in many ways already upon us, with cyber threats and risks to critical infrastructure already a fact of life. The ability to maintain business continuity is likely to be challenged, and while this means that both BMT and our customers will face greater challenges, our Chief Executive’s statement With our strategic foundations firmly in place, we not only continued to grow the business during the financial year but accelerated that growth, achieving double digit percentage increases in revenue, profit and margin compared to prior year. Because we exist to help navigate some of the most important and impactful engineering challenges of our time, solid performance matters; it gives us the foundation we need to continually increase the scale and positive impact that our products and services deliver. From national security and climate risk mitigation to energy transition and marine biodiversity, we are helping our customers find sustainable solutions to their most complex challenges. Business environment In our biggest market, the UK, performance was strong during the reporting period. A significant highlight was the successful delivery of the first stage of our work as a key supplier and subcontractor to the Royal Navy’s Fleet Solid Support (FSS) programme, but we also saw progress across our UK-focused portfolio. The UK general election in July 2024 delayed some decision-making, and the subsequent change of government affected spending across all government departments, resulting in some slowing of our Q4 orders. However, as the Government’s forthcoming Strategic Defence Review and Industrial Strategy review complete, and other key policy and spending decisions are made, we are confident that we will be wellpositioned in terms of market share going forward. Our Canada defence business performed well during the year, as the government maintained a steady rate of defence spending, and we will closely monitor this with an election due in 2025. In the US, our business is predominantly focused on asset monitoring, sustainment of offshore oil and gas infrastructure, and these areas saw strong demand as customers chose to invest residual cash balances, perhaps buoyed by the prospect of a new Trump administration. Our renewable energy-related services mean that we were also well-positioned for investment in green infrastructure in the US. After several years of challenging trading, our Asia Pacific (APAC) regional business returned towards profit, and we saw new wins aligned to our growth strategy during the reporting year. The publication of both the Australian Defence Strategic Review and Surface Fleet Review was welcome, providing greater clarity and opportunities ahead. But it was our APAC environment business that saw the strongest growth, with significant wins in offshore wind farm development off the coast of Gippsland, South Australia. Our services were also in demand across APAC and beyond as port owners sought to update their assets to meet future needs. Our innovative ship design work was also recognised and highly sought after in the region, one example being the launch of our design for an exciting new 48m service operation vessel. Performance During the reporting period, revenue was £203m, up from £185m in the previous year, representing an increase of 10%. We achieved profit before tax and profit-sharing schemes of £23.8m from continuing operations during the period, up from £14m the previous year, representing an increase of 70%. This enabled us to reward our employee members with a total profit distribution of 92% higher than the amount (on a like for like basis) paid in the previous period. While our broad portfolio of services and capabilities across multiple sectors and geographies gives us the benefit of diversification, we continued to further build resilience by reducing our dependence on a small number of large customers. In this respect, the financial year was a notable success, winning new customers for our wind farm work and in new markets related to our autonomous maritime data collection vessels. Guided by our strategy, we have been decisive in adjusting our portfolio, reaching mutual agreement to exit the UKbased Lateral Naval architects business, a joint venture between BMT and custom yacht builder Oceanco, to allocate our resources to more value-add operations. Once again, we were able to grow while simultaneously reducing the carbon emissions associated with our business during the reporting year, with our goals for reducing emissions and reaching net zero validated by the independent and exacting Science Based Targets initiative (SBTi). People We believe that employee engagement is crucial to our success as an organisation. So, I was delighted that our annual employee engagement survey built further on the high levels of buy-in and commitment recorded last year. Our engagement index increased to 38% (from 32% in 2023), well above that of other organisations within our sectors and geographies. With talent still in short supply, however, there is no room for complacency, so we worked hard during the year to further refine our employee value proposition and strengthen our approach to attracting and recruiting people from outside the organisation. We also delivered on our commitment to furthering diversity and inclusion across the business, closing the gender pay gap and supporting the study of science, technology, engineering, and mathematics (STEM) subjects in schools. We introduced a Leadership Development Programme for all senior leaders, designed to support them in becoming the best leaders for our people, and to lead the growth of the company. Given our focus and reliance on our people, I am pleased to report that, due to the strength of our financial performance, we were able to reward our people with both an employee dividend and a performance-related bonus, totalling £9.8m. Customers Our customers once again demonstrated their longstanding faith in us, awarding us higher value, long-term contracts and inviting us into their decision-making processes as trusted advisers. As just one example of our ability to deliver for our customers, we began work on our largest ever contract – the Royal Navy’s FSS programme – during the reporting period and achieved the preliminary design review milestone on time and to expectations. Customers also benefitted from the internal transformation of our business, which means that we are now placing greater emphasis on project management and delivery discipline. We also completed the implementation of a common organisational design across the group during the reporting period. This not only supports collaboration across the group, but it also provides greater autonomy for our front-line operations, making our teams better able to This has been a very successful financial year, enabling us to invest in the future with confidence. Sarah Kenny, OBE Chief Executive, BMT expertise in areas such as cyber and asset monitoring mean that we will be well positioned to overcome them. Equally, as geopolitical tensions rise and the war in Ukraine continues, we are seeing a shift towards new ways of warfare, from the use of autonomous drones to the wider adoption of AI. Again, our innovative, flexible and technology-led approach can make us a valuable partner for customers. Overall, I believe that our capabilities, strategic approach and the resilience that comes with a diverse but focused business portfolio, mean that we will be well-positioned to seize future opportunities to support our customers during these uncertain times. I also believe that business has a positive role to play in society beyond simple wealth creation. Our innovation, skills and knowledge will help shape a better future. By embedding sustainability into the heart of our business, we are also securing our own future in an uncertain world and helping our customers plot the best path through complex challenges to make a positive difference. 7 BMT Group Ltd | Review of performance 23-24 6
About BMT 1400 employees 27 office locations 8countries We create environments where people with outstanding technical knowledge deliver meaningful, practical solutions to the most complex problems and challenges. We are driven by a commitment to a safer, more efficient, effective and sustainable future. Putting people first “I value working at BMT for the chance to blend engineering and digitalisation, crafting innovative solutions for critical maritime challenges in oil and gas, renewables, environment, and ports and harbours. Collaborating with top experts from diverse fields makes each project both enriching and impactful.” Soma Maroju Software and Data Services Capability Manager “The knowledgeable, passionate people at BMT make every day a learning opportunity, supporting my personal and professional growth. Working on innovative projects across industries brings immense job satisfaction. It’s not just the quality of work that sets BMT apart, but the people.” Zoe Slumkoski Team Lead, Welding Technology Group 9 BMT Group Ltd | Review of performance 23-24 8
Invest Innovate Collaborate Core Organic growth Inorganic growth World class people engine Strong position Agile delivery engine Return on investment Innovation Trust Respect Passion Enables Collaboration Brilliant technical people Customers facing complex challenges Meaningful solutions Safer and more sustainable future Inspire Nurtures Deliver Builds Attract Earns Create Supports Supports Supports Supports Sustain and grow our core business based around the ‘famous four’, see page 12. Collaborate internally and externally. Innovate for ourselves and for our customers. Invest in ourselves through campaigns, partnerships and acquisitions. Our strategy for sustainable growth To build the resilience to weather uncertainty in an increasingly volatile world, we will deliver our strategy with a focus on creating balance and resilience across our portfolio. The market, our brand and reputation, support ‘levelling-up’ our business across our regions. And the strength and breadth of our capability also allow us to diversify and reinforce across the ‘core’. Our purpose defines why we exist and the impact we want to have, then our values define how we exist, and behave as individuals and as an organisation. The combination, working together harmoniously, is what makes us unique. It makes us BMT. Our purpose We exist to help navigate some of the most important and impactful engineering challanges of our time, creating an environment where people with outstanding technical knowledge strive to deliver meaningful solutions and a safer, more efficient and more sustainable future. Our values Our values – passion, respect, trust, innovation and collaboration – are the foundation of who we are, how we behave. Our objectives Our strategy Creating strength, balance and resilience Uniquely BMT Grow our core business; collaborate; innovate; and invest to grow through campaigns; partnerships and acquisition. Organic growth Organically grow our core business through the ‘famous four’. Inorganic growth Deliver sustainable profitable inorganic growth, via partnerships, SPVs and M&A. World class people engine Evidence a world class people engine, attracting, retaining and engaging the talent and skills we need. Strong proposition Ensure we have solid market presence, the right tools, the right offerings, and the right skills for our customers. Agile delivery engine Evidence an agile delivery engine with minimal overhead and intervention. Return on investment Evidence organic growth and return on investment through our strategic campaigns and initiatives. Our ambition Our ambition is to scale-up our growth in support of our purpose, expanding the positive impact that we can have for our customers, our communities, in education and the environment. BMT Group Ltd | Review of performance 23-24 10 11
Core Sustain and grow our core business based around the ‘famous four’. Innovate Invest As fundamental enablers to the whole business, our strategic initiatives are not bound by market drivers in the same way that business development opportunities are. They drive excellence for our people, enhancements in our performance, and added value for our customers. Digital transformation • Embracing AI in BMT • Transforming knowledge management • Creating digital citizens • Knowing our customers better • Enhancing our enterprise architecture • Secure and flexible infrastructure Innovation and research • Building consistent innovation culture • Developing products and tools • Sustainability-led innovation • Driving commercialisation and customer focus • Delivering thought leadership • Embedding AI tools We are investing in three campaigns that will add value to our business, shape our portfolio and position our business for long-term success. Maritime autonomous systems Our ambition is to position us as the leading technical consultancy for maritime autonomous systems in our markets. Offshore windfarms Our ambition is to position us as a trusted partner for wind developers and operators across the offshore wind infrastructure lifecycle. US business development Our ambition is to expand our position in the US to become a credible and capable design, engineering and consulting company across the maritime enterprise. Maritime design and consultancy: Supporting defence and commercial maritime vessel and infrastructure owners, operators and maintainers across the lifecycle from design, integration of capabilities and life extension of existing platforms. Asset monitoring and sustainment: Supporting customers (in the maritime, offshore and pipeline markets) in managing their portfolio of assets to ensure the structural integrity, efficiency and longevity of operation. Environment and climate solutions: Supporting customers in understanding and mitigating the impacts of environmental and climate effects on their assets and operations. Defence and security advice and services: Supporting Government organisations to procure new capabilities, support solutions and deliver business and capability change. BMT Group Ltd | Review of performance 23-24 12 13
Our operating performance | Asset monitoring and sustainment Market context During the reporting period, the market for our asset monitoring and sustainment services was influenced by several global trends, including the expansion of the renewable energy sector and the growing electrification of terrestrial and maritime transport, mining machinery, and other major equipment. While coal demand is expected to decline, natural gas and oil are projected to continue playing a key role in the energy mix for the foreseeable future, sustaining demand for our related services. As part of our long-term sustainability commitment, we are engaging with customers in the oil and gas sector to help them navigate energy transition and their carbon reduction goals. Simultaneously, geopolitical tensions and the rising threat of physical and cyber risks have underscored the need for robust asset protection. Climate change pressures are also not only prompting customers to accelerate their energy transition plans, but also exposing their assets to more frequent extreme weather events. In North America, the Inflation Reduction Act and other regulatory measures continued to drive investments in renewable energy and carbon capture. Natural gas continued to be a major energy source, particularly for electricity generation and for hydrogen generations projects. Looking ahead, hydrogen is expected to play a more significant role in North America’s energy mix, particularly as a clean fuel for transportation and industry. In Australia, coal power station retirements continued, a comprehensive National Hydrogen Strategy was put in place and the offshore wind market was helped by policies to support renewable projects. Moving from those broad trends to specific market conditions, the asset monitoring market is evolving towards a more procurement-driven approach, in which companies optimise their supplier selection and risk management strategies to generate the best value for their investments. We responded by engaging with our customers to continuously demonstrate the increased value and support we can provide. To ensure we maintain market relevance, we intensified our focus on delivering high-quality solutions at effective price points. In addition, large companies are increasingly leveraging their resources to build their own data storage solutions to unlock the potential of their data to drive innovation and support advanced analytics and machine learning applications. Our cloud-based data analysis platform BMT DEEP helps customers to harness this potential and positions us as a preferred partner able to support effective data quality, management, storage and analytics. Performance The continued reliance of our customers in the oil and gas sector on asset monitoring and sustainment services, along with our ability to win new work within the growing renewables market, meant that overall, we performed well during the reporting period. We successfully navigated a competitive market in which balancing service rates and team retention are crucial. To address these challenges, we focused on optimising operational costs and enhancing our value proposition. By streamlining processes and adopting efficient technologies, we were able to offer competitive pricing without compromising quality. Furthermore, we are exploring flexible pricing models and strengthening customer relationships by demonstrating the long-term value and benefits of our services. By showcasing the value and superior performance of our engineering and design solutions, we have positioned ourselves as the preferred partner for our customers. To further develop our capabilities, we invested in campaigns that guided the business into new markets: our Australia team won work on a new offshore wind farm capital project development and our global offshore wind campaign achieved its initial goal of building credibility within the market for our asset services, with clear opportunities established by year end. We provide high-value independent engineering and design services to customers in the energy sector. ‘We successfully navigated a competitive market in which balancing service rates and team retention are crucial.’ Strategy and organisation We put strategies in place to retain our key individuals and teams during a period of continuing global talent shortages in the key areas of science, engineering and technology. We achieved this by providing a supportive working environment, professional development opportunities and flexible working arrangements. This helped us to maintain a motivated and skilled workforce. In addition, several strategic hires – including a new global offshore wind campaign lead – helped to add value, exploit market opportunities and support strong customer relationships. We maintained our position as a leader in the industry through regular and prominent participation in global technical symposiums and conferences. These platforms have once again allowed us to shape industry discourse, address challenges and explore innovative solutions. Highlights The winds of change We are partnering with Singapore-based shipbuilder Strategic Marine to support the energy transition in the offshore wind crew vessel industry. This collaboration will deliver advanced Crew Transfer Vessel (CTV) designs that meet strict emissions reduction targets, focusing on cleaner fuel technologies and more efficient propulsion systems. By integrating low-carbon solutions, we aim to reduce the environmental impact of offshore wind operations and help accelerate the shift to renewable energy. (below) “We continue to innovate together to bring about industryleading vessels of the future.” Eng Yew Chan, CEO, Strategic Marine 15 BMT Group Ltd | Review of performance 23-24 14
Outlook Our close and trusted relationship with asset operators offers the opportunity for us to decouple performance from changing government policy and global uncertainty through the provision of long-term, life of asset services. Our ability to develop and deploy digital services, coupled with our reputation for asset data acquisition and maritime domain knowledge, offer a strong set of integrated services that enable customers to optimise assets for safety, cost, security and sustainability. More broadly, energy costs, energy security and the energy transition are all likely to remain key drivers for our customers in the year ahead, which will help to ensure that demand for our asset monitoring services remains strong. We will leverage our established expertise and strong track record to further improve our offering to operators. Similarly, we will continue to apply our maritime asset monitoring and sustainment experience to support offshore energy renewables projects. Through our efforts in both areas, we will strengthen our position as a sought-after partner for innovative solutions in the evolving energy landscape. Green power We are leading the Hydrogen Powering of Vessels research project on behalf of the Blue Economy Cooperative Research Centre (CRC), an industry and academic partnership funded by the Australian government. The addition of Australian wind farm developer Southerly Ten to the project marks an exciting new phase, which will further drive offshore decarbonisation using hydrogen propulsion for offshore CTVs and SOVs. (above) Piloting success We are providing technical support services for the construction of a worldclass 22m ‘heavy weather’ pilot vessel for the Port of Milford Haven (PoMH), the UK’s leading energy port and one of the biggest liquefied natural gas (LNG) terminals in the world. Having previously helped the PoMH to scope the vessel requirements, we are now delivering independent governance and support throughout the vessel design, build, training and trial phases. (below) Enhancing offshore operations We worked on the upgrade of servers and load management programmes for Esso in the deepwater Kizomba oil field offshore of Angola. We also conducted the upgrade of a Single Point Mooring Telemetry and Control System (SPM-TCS) for leading Argentinean oil and gas distribution company Terminales Marítimas Patagónicas S.A. The new system will provide essential real-time operational environmental data. In addition, we are working on our second offshore Integrated Marine Monitoring System (IMMS) contract in the deepwater Trion oilfield in the Gulf of Mexico. (below and right) BMT Group Ltd | Review of performance 23-24 16 17
Our operating performance | Defence and security advice and services Market context With over half the world’s population voting in general elections during 2024, the reporting year saw challenging market conditions, with a slowdown in government spending globally. This, combined with the ongoing tensions in the Middle East and Eastern Europe, forced many governments to focus on short-term priorities, emphasising the maintenance of current stockpiles and assets rather than investing in innovative new defence projects. However, governments continued to articulate their future aspirations and strategic goals, highlighting the ongoing need for consultancy support to help realise these visions. In the UK, July’s general election delayed decision-making and impacted demand. However, as the Government’s Strategic Defence Review and Industrial Strategy will conclude in 2025, demand is likely to grow, accelerated by the greater priority of the defence sector during a period of almost unparalleled geopolitical tensions. Persistent shortages of technical and programme management skills within customer organisations meant that they continued to rely on us to provide the necessary expertise and guidance in navigating these turbulent times. We provide independent design, engineering management and programme consultancy services in the ‘five eyes’ defence and security markets of Australia, Canada, New Zealand, the US and the UK. Our technical expertise, collaborative approach and impartiality help customers to meet their most complex engineering and programme challenges. The Australian defence and security market was shaped by increasing geopolitical tensions and a heightened focus on national resilience and technological advancements in defence systems. This presented a mix of transformative opportunities and complex challenges, underscoring the need for agility, innovation, and strong strategic positioning in the defence and security sector. While international pressure for Canada to meet the NATO benchmark of spending 2% of its GDP on defence did not impact the 2023-2024 budget, this commitment will be a significant stimulus going forward and is likely to further intensify skills and capacity shortages. On both sides of the North American border, we await the outcome of defence industrial strategy reviews which should provide long-term predictability and enable better planning for us. Performance Our biggest defence market, the UK, showed strong growth, buoyed by delivery of the first stage of the largest ever contract win in our history, as a key supplier and subcontractor to the Royal Navy’s Fleet Solid Support (FSS) programme. With the UK government’s Strategic Defence Review and Defence Industrial Strategy due to be completed this year, we are confident that we will be well-positioned and able to maintain our market share going forward. In the context of challenging market conditions and limited opportunities, our performance in Australia was solid. Our team demonstrated resilience and agility, to secure market share. These efforts put us in an advantageous position to capitalise on future opportunities as the market evolves. Business performance across the North America defence portfolio was good during the reporting year, despite the prevailing market conditions. We not only achieved another record revenue year for the Engineering Logistics and Management Support (ELMS) contract but also won a long-term, high-profile contract to conduct the Naval Technical Officer Training for the Royal Canadian Navy (RCN). This will help to diversify our contract base, provide additional development opportunities for staff and improve contract margins. Strategy and organisation As technology continues to evolve at a rapid pace, we carried on investing in upskilling our employees. Our people remain central to everything we offer and the challenge of recruiting and retaining talent is ever-present in today’s competitive global market. This commitment to investing in people ensures that we continue to sustain and develop the close relationships and trust we have built with our customers. Our investment in the Autonomy campaign broadened skills beyond the core team. In a similar vein, our Consulting for Complex Transformation campaign elevated our service offerings into higher-value domains by fostering new skill sets. Our new global organisational design provides opportunities for deepening specific skill sets, while also offering the chance to gain experience across different markets. This not only enhances our capabilities but also makes us more adaptable and versatile in meeting the diverse needs of customers. To meet procurement criteria and ensure we deliver for all stakeholders, Social Value (SV) has become a cornerstone for all our bids and proposals. We are also developing our associates and partner networks to best support our customers on complex and challenging projects. Highlights Shaping the future of autonomy We will play a key role in the research, development and deployment of autonomous underwater vessels for the UK’s Royal Navy. A new contract with the Defence Science and Technology Laboratory (Dtsl) maritime research framework will see us partner with SeeByte, Sonardyne International and the National Oceanography Centre (NOC) to shape the role of autonomy for the Royal Navy. (above right) “Our cyber and autonomy teams have proven their ability across leading-edge initiatives.” Monty Long, Regional Future Business Director UK/Eur, BMT BMT Group Ltd | Review of performance 23-24 18 19
Outlook National elections the world over have generated significant uncertainty within defence departments, leading to a predominant focus on short-term prioritisation of national and international commitments. This emphasis on immediate needs is expected to continue, but the necessity for future planning remains, driven by the lengthy timelines involved and the need for positive public engagement. Consequently, the recapitalisation of maritime platforms is anticipated to withstand defence reviews and the reprioritisation of defence budgets. We are strategically positioned in the UK market with our innovative designs. In Australia and Singapore, the outlook for defence and security advice and services remains both dynamic and promising, driven by regional security challenges and evolving government priorities. We will continue to leverage strategic partnerships to deliver innovative solutions including autonomous systems and naval platforms. In Canada and the US, the challenging geopolitical environment has significantly raised the priority of national security. The anticipated increase in defence spending on both sides of the border will present significant opportunities in both new programmes and service support as well as the modernisation of current assets. Across all our markets, there is clear evidence that defence is entering a period of significant change, with plans for substantial government investment in emerging technologies. By leveraging our expertise, innovation and established relationships, we can play an increasingly important role in helping our government and commercial partners to shape the future. “Together we are delighted to have streamlined the navigation certification process, and I look forward to continuing to work with BMT to realise further cost savings whilst addressing the identified areas for development.” Paul Smith, Master Mariner and Group Lead for Navigation in the MoD’s DE&S Maritime “We are excited to work alongside BMT on this critical initiative. Our role in this partnership ensures the highest standards of design are embedded into the CAIMEN® Large from the outset through a comprehensive technical assurance approach, supporting BMT’s vision of providing a future-ready defence capability.” Tim Holt, Area Manager at DNV - Maritime “The success of the programme to date is predicated on promoting the best outcome focussed behaviours. This is not a transactional programme; NSDG very much considers the Warship Combat System Support Service (WC3S) as part of the core MoD team critical to delivering these capable platforms into service with the Royal Navy. It is a significant achievement for DE&S to secure these QinetiQ-led combat systems expertise forged from the across the Enterprise for a further 4 years”. Captain Shaun Riordan RN, T26 Combat Systems Team Leader and WC3S Phase 3 lead Canada wins We won a significant contract to deliver Naval Technical Officer Training for the RCN. This high-profile project illustrates our ability to leverage our capabilities into adjacent markets. Also, for the RCN, we helped complete their decarbonisation plan, which provides the policy and technical guidance needed to meet future sustainability requirements. (below) Communications excellence We are working with Boeing on a maritime communications system that will enhance the Royal Australian Navy’s (RAN) fleet connectivity and advance joint force capabilities. The Maritime Warfighter Network is an evolution of Boeing’s proven Integrated Battlespace Telecommunications Network (I-BTN), which has been adapted to meet the unique operational and seaworthiness requirements of the RAN. Powerful partnership This year saw us embarking on another exciting project as part of the UK Ministry of Defence’s (MoD) Aurora Engineering Partnership (EDP), working alongside QinetiQ and AtkinsRéalis. The new four-year contract award from the MoD’s Defence Equipment and Support (DE&S) will provide support across all aspects of combat system acquisition and integration for Type 26 and Type 31 new-build Frigate ship programmes. (above) Safe service An innovative BMT-led service has been extended after an initial contract with the UK MoD. Navigation as a Service (NAAS) not only provides Platform Authorities (PAs) with vital information that a particular class of ship is navigationally safe to operate, but it also does so efficiently and cost effectively. (above right) A charter for success The Police Industry Charter allows police and suppliers to collaborate closely to create better public services and outcomes. Having long partnered with UK policing and national crime-fighting agencies, we were delighted to sign the charter in 2024. (below) 21 BMT Group Ltd | Review of performance 23-24 20
Our operating performance | Environment and climate solutions Market context In both the public and private sectors there is growing recognition of the need for organisations to both mitigate their impact on climate change and increase resilience to it. Ever-tightening regulation is one driver, as are government investment and incentives, such as the US’s Inflation Reduction Act and Canada’s National Adaptation Strategy. These incentives create the environment for businesses, municipalities, and other types of organisations to invest in evaluating, quantifying and ultimately managing these types of risks and opportunities. We offer a unique perspective as an advisor for these challenges, providing expertise on the management of mandatory and voluntary actions. Due to the focus on climate change and increased climate impacts, market conditions were buoyant within the reporting period, particularly in Asia Pacific. As companies and governments increasingly focused their attention on the energy transition sector, the demand for services related to offshore wind, alternative fuels and pumped hydropower projects increased, creating positive market conditions for us. Greater activity in marine environment projects for port expansions and offshore wind farms also boosted demand for our environmental assessment services, particularly in Asia Pacific. There is an increased societal expectation on businesses, industry and government to take responsibility for restoring and protecting the environment. We provide the expertise and assurance that they need to measure, monitor and manage environmental risks. Although most companies have completed their carbon baseline and have plans to improve environmental performance, reaching net zero requires solutions to wider systemic issues, such as future fuels and electrification. These are typically multi-stakeholder challenges that require a Systems of Systems approach, which represents an opportunity for us. Performance Vibrant market conditions encouraged the environmental and sustainability consulting sector’s top-tier companies to expand and consolidate their position, potentially squeezing out smaller operators like us. We responded by improving our relationships with top-tier players, and the success of this approach was evidenced in our performance during the reporting year, enabling us to access opportunities on larger infrastructure and environmental assessment projects. We leveraged our proprietary TUFLOW modelling software, as well as our industry connections and reputation, to win work in the aquaculture and government sectors in North America. The success of these initial projects enabled us to further build our environmental and climate capability in the region. A new partnership was formed with French software business Dassault Systemes to integrate our TUFLOW modelling software and flood consulting capability into their virtual twin platform. Our joint solution leverages advanced technology to predict and mitigate flood risks. We continued to cross-sell our sustainability consulting expertise to existing customers, using a mix of technical and non-technical personnel to differentiate us from other providers. Budgetary constraints for public and private organisations, both during and prior to the reporting year, reduced investment in voluntary climate and environmental initiatives, but despite these headwinds we still managed to grow our offering and maintain our key skills and competencies. The reporting period was notable for the number of new environment-related projects won, largely driven by our technical specialisations in niche marine science and engineering projects. In Asia Pacific alone, 350 environment-related projects are underway, from flood assessments to Environmental Impact Statements. Strategy and organisation To best manage the continuing growth of our environment and climate solutions work, we made changes to our organisational structure and added key employee hires. A Global Business Development lead was hired to support all regions. Carefully orchestrated work by our Future Business teams, supported by global and regional campaigns, delivered positive results, including winning the marine environment components of environmental assessment projects for several major, multi-year offshore wind projects. We continued to develop our close relationship with academia, with key employees completing high-level qualifications in engineering and, in one case, serving as a member of a university advisory committee alongside their role at BMT. In the UK, we significantly strengthened our environmental team through key hires and benefited from our global mobility programme, which enabled two Australian colleagues to share best practice and integrate global capabilities. New hires of mid-to-senior level consultants enabled us to develop our capabilities and services, which include integrated water (including groundwater), asset monitoring in onshore wind, structural assessments for offshore aquaculture and offshore construction logistics. Our strength, as well as our reputation in environment climate solutions, was evidenced in our ability to attract high-quality candidates with excellent industry, research and on-site experience. Highlights Satellites of the sea We are revolutionising maritime data collection and management in a groundbreaking new project with technology company Ocius. The partnership will create a global fleet of 1,000 autonomous vessels within the next 10 years, which will act as a networked system of remote sensors gathering vital maritime data. The Bluebottle vessels, equipped with renewable energy-powered propulsion systems, are designed for long-term, sustainable operations without physical intervention. Initially targeting environmental monitoring for offshore wind development projects, this collaboration will provide critical data on sea life, water quality, and other environmental parameters. Furthermore, the Bluebottle vessels will significantly reduce the need for crewed data collection, offering a clean, cost-effective solution to support maritime operations. (right) “It marks a new era in maritime data collection and management that offers unparalleled capabilities to a range of customers worldwide, both government and commercial.” Graeme Nayler, Regional Business Director - APAC, BMT “This teaming agreement with BMT represents a leap forward in our mission to provide autonomous solutions for maritime challenges. Bluebottles, equipped with advanced sensors provided and operated by BMT, will help scientists, sailors and CEOs safeguard our oceans, monitor assets, and make informed decisions.” Robert Dane, CEO of Ocius 23 BMT Group Ltd | Review of performance 23-24 22
Outlook While there is undoubtedly much potential ahead to support companies on the path to net zero and the energy transition, it is important to sound a note of caution. Tightening corporate budgets may reduce the appetite for voluntary programmes to improve sustainability and climate resilience, while the outcomes of the election ‘super cycle’ may result in changes in government that will either alter or push back on environmental and sustainability goals. However, the range of our services, the flexibility of our teams and our relatively small but growing place in the market can all help to provide us with opportunities despite these headwinds. We expect offshore wind projects in the Asia Pacific region to continue to provide opportunities across environment, metocean, ports and logistics and vessel design. In Australia, although the pace of projects has slowed for some offshore wind developers, this should be resolved following the outcomes of the federal election in 2025. We also see opportunities to leverage our new hires and cross-sell adjacent services to our existing customers, especially across the integrated water and energy transition. While a buoyant market for marine industries provides many opportunities for us, it is also attracting increasing competition. We are seeing new and agile technology companies entering traditional advisory services markets. However, many of these technology companies lack the domain knowledge to gain customers’ trust, while our traditional competitors often lack the digital maturity to compete effectively. With both the requisite technological and domain knowledge, we have the potential to play a growing role in the marine market. “I am excited about the increased impact we are having, collaborating with our customers, supply chains and industry partners on global challenges such as climate change.” Shane Amaratunga, Global Business Development Director, BMT Supporting Scotland’s fisheries We won a contract to support Scotland’s fisheries during a period of climate change and ocean acidification. Awarded through ClimateXChange – Scotland’s centre of expertise on climate change – the project reinforces our ongoing commitment to sustainable, regenerative practices. (above) Canada project wins In Eastern Canada, we contributed to the environmental impact statement of a new aquaculture installation using our TUFLOW modelling software. We were also involved in several sustainability and decarbonisation initiatives within large federal institutions, providing technical expertise to integrate customers’ environmental goals into their operations and actions. In Southern Ontario, we worked on the environmental and climate assessment of a project evaluating transit options for a community, quantifying the potential impacts on the surrounding community and evaluating the climate change effects that are relevant to its design and implementation. (above right) We win key award We triumphed at the 2023 Energy Industries Council (EIC) National Awards Ceremony, not only winning the coveted Culture Award but also being finalists for the Sustainability Award. This was achieved against stiff competition from 60 leading companies in the energy sector. (below) New software success Our new integrated environmental software platform TUFLOW CATCH won the Australian 2024 Stormwater Queensland Award for Excellence in the Research & Innovation category. This award recognises the platform’s valuable role in modelling the impact of water catchment. (right) Boosting the blue economy We are playing a key role in Australia’s Blue Economy Cooperative Research Centre (CRC). Our work on the Data Infrastructure Design for the Blue Economy (DIDBE) will help the CRC to effectively manage and share marine and maritime data, supporting its mission of fostering growth through evidence-based decision-making. Green giant Set to be the world’s largest renewable energy project, which will be capable of powering 70 million households, Australia’s Western Green Energy Hub will feature massive solar and wind capabilities. Our initial work on the project involves vessel-based surveys of marine habitats, bathymetry and metocean conditions, combined with hydrodynamic modelling and preliminary environmental impact and approvals advice. (above) ADAPT dredging We have created a new high-impact, disruptive dredgingrelated service called ADAPT. It brings together our simulator software TUFLOW, our dredge planning domain knowledge, our data platform BMT DEEP and our AI capabilities to target even the toughest of customer dredging challenges. (below and right) 25 BMT Group Ltd | Review of performance 23-24 24
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