The 1H 7% EBITDA/10% revenue advance was in line with our 1H view, and consistent in our opinion, with maintaining our FY September 2026 forecasts. While those rates of 1H growth are a little stronger than the growth rates we are estimating for FY 2026E, we are happy with that degree of comfort, given the general overall economic backdrop. The value led sales approach focused on profitable work, has led to an improvement in the Gross margin to 32.4% (H1 2025: 32.0%), and as the statement notes, the Group are ‘benefiting from disciplined pricing, better job allocation, and a sales culture centred on gross profit rather than top line volume.’ Despite the ongoing effects of the competitive backdrop, for instance in areas of Contract Maintenance, which are broadly consistent with the conditions outlined at the FY25 results, demand for essential reactive and planned services continues to be resilient. The Group have notably seen a strong contribution from 24hr Aquaflow Services and Project Sparkle is now fully live at LaddersFree, providing real time operational visibility and a scalable digital platform. At this stage, the impact of the Middle East situation on input/logistical costs look manageable but being monitored. We retain our 69p TP/Buy, based off a FY 26E target 11x PER
