Our Strategy

Our strategic framework

Our Purpose

We serve customers responsible for national defence, emergency services and nuclear power. We exist to meet the needs of customers for whom failure is not an option.

What we do

We are a leading provider of critical, complex engineering services across defence, emergency services and civil nuclear markets in the UK and increasingly internationally.

Our strategic priorities

Our strategy is delivered across our four sectors: Marine, Nuclear, Land and Aviation. We have set strategic priorities to ensure a focus on delivery. These priorities follow on from the strategy outlined at our Capital Markets Day in June 2019.

To deliver our medium term financial targets

• Earnings growth of 3% to 4% CAGR
• Sustain margins at around 11%
• Increase cash flows each year in line with earnings
• Generate around £1.4 billion of free cash flow over the next five years
• Continue to reduce net debt and increase flexibility
• Improve ROIC
• Sustainable dividend

Given the uncertain impact of COVID-19, these medium term targets will not be achieved in the current financial year. The drivers of our strategy remain unchanged and the long term characteristics of our business remain strong. We will continually assess our medium term targets as we emerge from the pandemic and they are aiming points for us to return to.