Shaping the future - a review of performance for 2021

The summary financial statements on pages 30 and 31 provide the total results for the year, the financial position as at each financial year end and cash flows. The complexities around the exceptional items with their revenue and costs and adjusting post balance sheet event are reflected therein. BMT Designers & Planners Inc (“D&P”) On 1 February 2022, the independent Board of our US defence and security business filed for bankruptcy following failure to secure additional payment for contract change orders. The impact of this post balance sheet event has been reflected in the results for the year under review, using a break-up basis. Business environment The pandemic combined with geopolitical pressures created mixed market conditions for both private and public investment around the world. Many of our customers are public sector-based and most of our services are categorised as essential, which has enabled us to continue delivering them despite restrictions in many of our trading markets for the financial year. We were privileged to be able to maintain essential engineering design, risk, and support services to the military fleets in Australia, Canada, the United States of America and the United Kingdom. Financial performance The UK remains the group's largest market, but it offered little scope for real growth in the reporting period, mainly due to economic uncertainty arising from the pandemic and the Government’s defence and security review. In North America, the US and Canadian markets offered opportunities for growth, with a strong defence sector complemented by the continuing recovery in the offshore energy sector. Defence and maritime environmental markets in Australia saw demand remaining steady in the public sector. The markets in South East Asia continued to be challenging, further endorsing our decision to exit our Hong Kong, Malaysia, India and Indonesia businesses. Margin Despite customers remaining cost sensitive, our ability to focus on and provide high-knowledge, highvalue services helped us raise our EBITDA margin from 6.8% to 7.6%. during the reporting period. Cashflow We continue to efficiently manage our working capital, including our cash position. By doing so, and with the support of our customers, we have maintained a very strong liquidity position during the reporting year. Order book Despite the uncertainty and operational challenges associated with the pandemic, the order book held up well over the past 12 months with an order intake of £160m (2020: £162m) from the continuing business and, into the current year with an estimated order intake higher than £160m. Profits from continuing operations rose to £10.6m in the reporting period, up from £8.6m the previous year. As detailed below, the year was complex but saw a healthy order book and steady margin improvement, enabling us to reward our employee members with a £6.5m profit distribution – a critical weapon in the ‘war’ for talent. BMT Group | Shaping our future 28