Chief Executive’s statement Despite considerable macroeconomic and geopolitical challenges we were able to grow revenues, invest in the future, maintain profits and reward our employees with a £5.2m profit distribution. We have also maintained a healthy balance sheet. Furthermore, I believe that this reporting period has played a vital role in building the foundations for significant growth opportunities ahead. Performance Revenues from continuing operations rose to £157.0m in the reporting period, up 14.4% compared to the previous year. BMT recorded profits from continuing operations of £9.0M during the reporting period, slightly lower than the previous year’s total of £9.2m. This headline picture of rising turnover and flat profits was caused in part by cost inflation, to which we responded by carefully managing overheads and discretionary spend, achieving savings of circa £5m. However, our productivity was hindered by delays in orders which we had staffed in anticipation of delivery. We made the strategic decision to carry this extra capacity. The announcement in early 2023 that the UK Ministry of Defence (MoD) has selected a consortium including BMT to design and build new supply vessels for the UK’s aircraft carriers vindicated the decision to maintain headcounts. The future Fleet Solid Support (FSS) ships contract for the Royal Navy is the biggest in our history and will span 10 years. It is also pleasing that this project win, along with others, can be seen as a direct result of our willingness to invest in the future, particularly around the areas of innovation and capability. With orders now increasing, we also expect to see more benefits from our strategic transformation programme, which has focused on diligence in project management and oversight, particularly around project close-out and invoicing. While this Chief Executive statement primarily focuses on continuing operations, we continued to manage, during the reporting period, the results of the onerous contract entered into by BMT Designers & Planners Inc (D&P) and described in last year’s financial statements. As a result, our US defence and security business entered a formal insolvency process on 1 February 2022. More detail is provided in the Financial Performance section on pages 28-31. People Given the challenges faced early in the reporting year, with many of us still in lockdown due to COVID-19, I am pleased with the way in which we have returned to office working and have successfully blended it with virtual office working. Key to that success has been engaging with employees through virtual town halls, site visits and focus groups to understand people’s preferences and create structures that support individuals, while at the same time delivering to our collective needs as an organisation. In this context, I am really proud that we have appointed our first Employee Director, Mick Dewhirst. This gives Mick, who is also the chair of our Employee Engagement Group, a formal seat at the board table, ensuring that the employee voice is heard directly and clearly in all our decision making. I am also proud of our updated employee value proposition (EVP) – a commitment between BMT and our employees to create a positive and inclusive environment where we all feel valued and at our best. We are investing in initiatives that promote diversity, equity and inclusion, and are also supporting colleagues to be active in their local communities. This has been another year of progress in delivering our strategy and investing in our future in the face of significant headwinds. ‘I am also proud of our updated employee value proposition (EVP) – a commitment between BMT and our employees to create a positive and inclusive environment where we all feel valued and at our best.’ BMT Group | A platform for growth 6
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