UK nuclear represents a huge and complex market offering significant long-term opportunities. New build nuclear is required to help meet rising UK power generation needs and replace generation capacity which is nearing end of life. Decommissioning is essential to clean up the UK’s legacy nuclear sites safely and securely, prioritising areas where deteriorating buildings present an unacceptable risk. The total budget for nuclear is estimated at c.£301bn, with a significant proportion of this spend expected to be with UK companies. The contracting opportunities are not without risks and uncertainties. However many companies are already generating revenues and profits from UK nuclear contracts, including a number from our small and mid cap universe. We expect these contributions to become more material over time, and for the experience gained in the UK market to leave companies well-positioned to pursue nuclear opportunities overseas. Our top picks are Severfield (Buy) and Augean (Corporate), but we are also positive on Redhall (Non-Rated).