A positive update confirming that 1H25 trading is in line with expectations and management expressing confidence in meeting FY25 market expectations. The outlook is robust, underpinned by a strong order book and the group’s exposure to resilient and highly regulated end-markets (energy, infrastructure and healthcare). In the core AES division, Booth is singled out as making good strategic progress, delivering on a key milestone for its HS2 contract. The Medical division, which is in the early stages of commercialisation, is seeing good traction in signing up distribution partners with revenues trading in line with expectations. We continue to believe there is a clear path to creating shareholder value in the core Engineering business as management executes its Pinpoint Invest Exit strategy with significant potential value from the Medical division. We make no changes to our forecasts and reiterate our BUY recommendation.
