Chief Executive’s statement In last year’s performance review, I wrote that we had put the strategic foundations in place for significant growth. This year, I’m pleased to be able to report that those opportunities are being realised, evidenced by record sales orders, double-digit revenue growth, and significant improvement in margin and profitability. We exist to help navigate some of the most important and impactful engineering challenges of our time. I‘m proud that our growth and performance are increasing and accelerating the positive impact that we have from marine biodiversity to national security. This report highlights some of the ways we have achieved that in the past year. Business environment The reporting period began with governments in the UK, US and Canada committing to strengthening their defence capabilities in light of Russia’s invasion of Ukraine and rising geopolitical risks across the world. Our Americas and UK defence operations showed strong growth, buoyed by the largest ever contract win in our history as a key supplier and subcontractor to the UK Royal Navy’s FSS programme. By contrast, the Asia Pacific (APAC) region, experienced a more challenging business environment, particularly in the Australian defence market where a government defence review resulted in delays to key programmes. Our environment business continued to make progress within the region and, in the commercial shipping market, orders for our offshore energy crew transfer vessel (CTV) designs continued to grow, offsetting a still subdued large yacht market, in which our designs have long set the standard for innovation and efficiency. In this year we saw the ocean heat record broken, making the climate crisis evermore real and increasing pressure on our customers to procure low carbon solutions and respond to a warming world. Environmental, Social and Governance (ESG) disclosures and legislation are increasing across our home markets, pushing up demand for sustainable product and service design. From designing more efficient ships to transitioning to net zero, we’re delivering sustainable solutions and climateconscious designs throughout our portfolio and supply chain. Performance During the reporting period, total revenue from continuing operations was £185m, up from £157m in the previous year, representing an increase of 18%. We achieved profit before tax and profit sharing schemes of £12.1m from continuing operations during the reporting period, up from £8.3m the previous year, representing an increase of 46%. This enabled us to reward our employee members with a total profit distribution of £7.3m, 40% higher than the £5.2m distributed in the previous reporting period. This was a year where I believe that our financial performance accurately reflected the strength of our people, our strategy and our customer relationships. It also enabled us to invest in our capabilities so that we can achieve even more for our customers in the future. To strengthen performance, we rolled out a new organisation design that enables us to better respond to opportunities and manage the delivery of projects more efficiently and effectively. Key to supporting these efficiency improvements was the implementation of a single global management information system, which removes the administrative burden of multiple systems across the business and provides a more streamlined solution. The new system began operations in the UK during the reporting period, with a view to a broader rollout in the following financial year. It will enable us to deliver more effective project and programme management, improve oversight, enable more effective GHG emissions and provide even better service to our customers. Not only did our record-breaking contract win for the UK Royal Navy’s Fleet Solid Support programme have a positive impact on our financial performance during the reporting period, the multi-year nature of the contract also means that it will continue to contribute to our financial performance for several years to come. Just as importantly, it will see us deliver critical defence and sustainment capability to the UK at a time of great geopolitical uncertainty. It will also create over 100 highly skilled technical jobs within the UK. We grew whilst simultaneously reducing the carbon emissions associated with our business. An undoubted highlight in the reporting year was the news that our goals for reducing emissions and reaching net zero by 2035 were successfully examined and validated by the independent and exacting Science-Based Targets initiative (SBTi). People As the impacts of the COVID-19 pandemic have receded, there has been much discussion about the future of work. We took soundings from our people and noted that different geographies, offices and customer environments required different approaches. So, we are proud to maintain flexible and hybrid working because it enables our people to do their best work while balancing their home life. This has been an outstanding year for BMT, with a financial performance that endorses our strategy and enables further investment in growth. BMT Group Ltd | Review of performance 22-23 4
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