Welcome to OCU Groups Annual report and financial statements 2025 The report sets out our strategy, performance, and priorities for the future, including our year-on-year revenue growth, evolving markets, and how we are Accelerating Change and Shaping Futures for businesses and communities.
Accelerating change, shaping futures
Annual report and financial statements | 2025
About us Accelerating change, shaping futures
As the UK significantly increases its demand for energy, utilities and digital infrastructure, OCU Group has rapidly evolved its capabilities in response, forming the future landscape of how critical services are more efficiently and safely delivered. Positively shaping the future of clients, their customers, our employees, and investors is a hallmark of the past year at OCU Group. This year’s annual report brings an insight into the developments in OCU during the year. Our markets OCU Group serves the UK’s regulated and non-regulated infrastructure markets, providing services across renewable energy, digital infrastructure, regulated water and regulated power. In the non-regulated energy transition market, the Group has been commissioned to deliver renewable energy programs, alongside engagement on numerous energy connection projects, creating a balanced and resilient revenue profile. The growing number of water infrastructure schemes highlights the benefits of recent government investment programs and rising demand. At the same time, steady progress in regulated power frameworks underscores the deepening expertise of OCU’s utilities engineering teams. Over the past year, OCU’s telecommunications work has evolved to encompass a broader range of works, reflecting industry dynamics in fast-speed broadband deployment (known as ‘fibre to the premises’ or ‘FTTP’) and rapid data centre growth. Accordingly, in light of the new services offered, we have renamed this business unit Digital Infrastructure. This transition in activities is reflected in the revenue mix generated by the business. Whereas historically virtually all of the revenue was from FTTP work, this has now evolved to also cover areas such as network maintenance, small cell deployment, multi-dwelling unit connectivity, and data centre pre-enablement. After the year end, through the acquisition of a majority shareholding, we have added All Energy Contracting (AEC) to the Group, a multidisciplinary contracting business specialising in renewables and energy infrastructure services. Through AEC, OCU now has a well-positioned operational foothold in both Australia and New Zealand, expanding our geographic footprint and our capacity to deliver renewable energy projects internationally. This clearly demonstrates our strategic commitment to addressing the global energy transition, enabling us to meet the growing demands of our clients for cross-border capabilities. Our people With around 5,000 people working across the UK each day, OCU is shaping the futures of UK communities. Bringing essential services to our clients’ customers is OCU’s ‘why’; be that renewal, repair, or new provision, the outcomes are always a positive step towards a more sustainable future. Our commitment to enabling growth does not stop in the communities that we serve; it is echoed in the commitment to our own people. This year, we actively invested in employment opportunities, personal development, and support during tough times. Our team’s diverse skills and unique capabilities enable us to meet the rapidly evolving requirements of our clients and their customers. This approach not only meets demands but also positively shapes the communities where we live and work. By continually adapting and evolving we ensure a sustainable and prosperous future for all our stakeholders.
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OCU Group | Annual report and financial statements 2025
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Financial statements
Contents
Strategic report
Financial statements
Highlights
2 3 5 6 9
Statement of Directors’ responsibilities
104 105
What we do
Independent auditor’s report Consolidated statement of comprehensive income
Our culture and values
108
How we do it
Consolidated statement of financial position Consolidated statement of changes in equity
Our heritage and FY25 highlights
109
Market opportunity Chair’s statement
10 25 27 30 34 47 52 54 55 75 84 89 91
110 111
CEO report What we do
Consolidated cash flow statement Notes to the consolidated financial statements Parent company statement of financial position Parent company statement of changes in equity Notes to the parent company financial statements
Operational review
112
Our strategy
129
Business model
Sustainability highlights
130
Our sustainability approach Reporting and performance Stakeholders & section 172 Chief Financial Officer’s review
131 134
Notes
Risks
Governance
Chair’s introduction to governance
95 96 98 99
Board of Directors
Board purpose and leadership
Division of responsibilities
Governance structure
100 101 102
Committees
Directors’ report
Visit us online: ocugroup.com
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Financial statements
Highlights
Financial highlights 1,2 Revenue £886.5m
Adjusted operating profit 3 £98.9m
Adjusted EBITDA 3 £111.0m
2025
£886.5m
2025
£98.9m
2025
£111.0m
2024
£610.6m
2024
£58.4m
2024
£65.7m
2023 2022
£454.5m
2023 2022
£51.6m
2023 2022
£56.5m
£295.2m
£40.7m
£45.5m
Operational highlights Organic growth through integrated capabilities
Continued strategic acquisition journey OCU completed three acquisitions during the year, further strengthening our capabilities in energy transition, horizontal directional drilling, and water. These strategic additions are already driving revenue synergies, enhancing our workforce capacity, and broadening our geographic reach. Our disciplined integration approach makes sure these businesses are fully aligned with OCU’s operating model, delivering immediate value and supporting continued organic growth. Leading approach to asset investment OCU continues to lead with limited strategic fixed asset investments, introducing George, the UK’s largest pipe pusher, and the e-hotbox, the UK’s first electric hotbox. Additionally, our Tonghands technology represents the UK’s largest fleet of hands-free drilling rod management attachments, setting new standards in operational efficiency and safety.
Clarity in business units serving diverse markets OCU has refined its operating business units to clearly serve regulated and non-regulated markets, ensuring tailored attention to client needs and market demands. This strategic clarity has enhanced our operational effectiveness and market responsiveness, further solidifying our role as a multi-faceted infrastructure services provider. Maturity of Group Services Group Services at OCU have reached new levels of maturity, particularly in our safety culture with the ‘Think Safe + Work Safe = Home Safe’ initiative, and in sustainability with advanced reporting and strategic commitments being delivered. Digital transformation continues to reshape our workforce and back-office operations, enhancing efficiency, flexibility, and scalability across the Group.
OCU has secured new projects, including several battery energy storage systems (BESS), by leveraging enhanced capabilities from recent acquisitions and inherent expertise. This integrated approach has led to significant wins, including projects that blend design, engineering, horizontal directional drilling, and electrification, showcasing our ability to deliver complex solutions seamlessly. Evolution of a digital infrastructure team This year saw the evolution of a specialised digital infrastructure team at OCU, primarily focusing on fibre installation, maintenance, and data centre pre-enablement. Notable achievements include a significant contract for fibre maintenance, generating £40m annual revenue, and positioning OCU as a strong enabler in the future AI‑enabled economy.
1. OCU Group represents Oat Topco Limited and its consolidated subsidiaries detailed in note 24. 2. Results for all years reflect twelve months of trading.
3. Adjusted EBITDA and adjusted operating profit are defined on page 89.
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What we do
We operate across both regulated and non-regulated markets, providing clients and their customers with safe, reliable, and timely deliveries that align with their future demand. Underpinning our operations is a mature, digitally enabled Group Services platform that drives performance, efficiency, and resilience across all business units.
Strategic operational capability OCU’s capabilities span the full end‑to‑end lifecycle, from design through to build, commissioning, and maintenance. These include delivery across regulated power, water, digital infrastructure, and energy transition markets. Our extensive service offering is realised through three dedicated business units, supported by integrated design and delivery expertise. This structure enables us to respond rapidly to market needs while driving consistent quality and innovation across all programs. Our business units are OCU Energy, detailed on page 39, OCU Utilities, detailed on page 35, and RJ McLeod, detailed on page 43. Our activities support national programs in BESS, wind farms, pre‑enablement for synchronous condensers, regulated power upgrades, clean water delivery, digital fibre maintenance, renewable energy integration and more, as detailed in the Market opportunity and Case studies (pages 10 to 24). We deliver critical work for our clients throughout the UK, and our model will also support our international growth.
Operational governance Our leadership team, headed by the CEO and supported by the Group Board, ensures strategic alignment across all functions. Group Services, covering finance, commercial, technology, HR, SHEQ, legal, procurement, PMO, sustainability and more, has reached a new level of maturity this year, as detailed in the Operational highlights (page 2). This maturity enables consistent scalability, ensuring that our regional operations remain agile and responsive. With over 5,000 team members working across 41 key sites, OCU is structured to support nationwide delivery with local responsiveness. Co-location strategies, 24/7 operational hubs, and digital tools (see How we do it, pages 6 to 8) ensure streamlined execution across all service areas.
Confidence for the future Our proven capability in delivering complex infrastructure frameworks, programs, and projects is reinforced by a strong organic growth and strategic acquisition program, the deployment of modern operational processes, and continuous investment in training and innovation. Our commitment to sustainability, culture, and safety – outlined in Our culture and values (page 5) – provides a stable platform for long-term success. Whether delivering renewable energy programs, regulated water projects, digital infrastructure, or power frameworks, OCU Group’s integrated structure and broad capabilities make it a trusted partner in shaping the UK’s future infrastructure. Our international journey began in July 2025 with the addition of All Energy Contracting (AEC), which extended our footprint across Australia and New Zealand, reinforcing our commitment to accelerating change and shaping futures.
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What we do
OCU leads the way in end-to-end infrastructure engineering in the utilities, digital, and energy markets, specialising in safely and efficiently delivering complex client requirements. Our breadth of capabilities and depth of operational capacity, paired with our cutting‑edge technology, ensure that we are not just part of the market; we are leading it.
OCU Group structure
OCU Group
Regulated
Non-regulated
Business units
OCU Utilities
RJ McLeod
OCU Energy
Markets
• Digital infrastructure • Regulated power • Water
• Energy transition • Renewables
• Energy transition • Renewables
Capabilities
Infrastructure services: • Data centres – fibre & low voltage • Fibre – maintenance • Fibre – residential & business build • Horizontal directional drilling • Multi-utility • Overhead lines • Rail – fibre • Substations • Underground circuits (LV to EHV) • Water & wastewater
Energy programs: • Battery energy storage systems (BESS) • Cabling • Data centres – high voltage • Grid infrastructure solutions • Horizontal directional drilling • High voltage direct current (HVDC) cable landing • Microgrid and private networks
Energy connection projects: • Grid solutions • High voltage interface solutions • HVDC converter fit out • Microgrid & private networks • Network connections • Operations & maintenance • In-house manufacturing solutions • Rail – power • Solar • Vehicle charging solutions
Infrastructure engineering: • BESS civils • Civil engineering • Flood defence • Harbours & piers • Highways • Horizontal directional drilling • HVDC cable routes • Hydroelectric • Onshore wind farms • Synchronous condenser pre-enablement
Technical support
• OCU Design – Regulated Power • OCU Design – HDD • OCU Design – Water
• OCU Design – Energy • OCU Design – HDD
• OCU Design – Energy
• OCU Design – Energy • OCU Design – HDD • OCU Design – Water
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One Company United Our culture and values
At OCU our culture is ‘One Company United’ and our people’s individual and collective efforts help to make sure we keep an ‘Outstanding Culture Upheld’. We thrive on teamwork, respect, and incorporating diverse perspectives to achieve the best results. Our culture and values underpin all the activity that keeps us moving forward, actively influencing how change happens and positively shaping futures. These principles do more than guide our actions; they trigger new growth, enhance our performance, and demonstrate our dedication to being a dynamic leader in an evolving marketplace. Each of our values is purposefully integrated into our day-to-day operations, ensuring that our activities consistently exceed the high standards we have set and make meaningful contributions to the communities and environments we work in.
Our values Six core values capture our identity and guide our operations:
We care about safety Safety is non-negotiable in every activity, ensuring that everyone in our environments is protected and secure. Our safety mindset is ‘Think Safe + Work Safe = Home Safe’.
We deliver to grow We commit to the best performance in all the work we do, creating growth for our clients and for OCU through market‑leading outcomes. We lead with integrity We maintain the highest ethical standards in all our work, ensuring transparency and honesty in every action.
We make a positive impact We are dedicated to improving communities and enhancing the environment, strengthening our commitment through proactive initiatives.
We strive to be better every day
We are One Company United
We embrace each day as an opportunity for improvement, pushing boundaries for professional development and operational excellence.
Collaborating as one team, valuing diverse perspectives to deliver positive results.
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Our safety mindset How we do it
Safety is not just a protocol at OCU, it is our first value and foundation for success At OCU, safety is embedded in our corporate mindset, not merely as a guideline but as the foundation on which all operations are built. It is found in every aspect of our strategic vision; our commitment is to the wellbeing of every individual associated with our work. This dedication extends from the executive level through to each team member, ensuring a joined-up and proactive safety culture throughout the organisation. Our approach to safety stems from our leadership, with safety as the first agenda item at every Group Board, subsidiary board, and Executive Committee meeting. This prioritisation amplifies its importance across our entire operation, ensuring it remains at the forefront of our strategic planning and daily activities. It’s a commitment that all levels of leadership actively uphold; our senior leaders, including CEO, COOs, and MDs, not only sponsor safety activity, but are also directly involved in safety reviews, site visits, and planning initiatives.
This hands-on leadership involvement helps to continually reinforce our safety culture and makes sure that our high standards are upheld. By embedding safety into the DNA of our corporate structure, OCU makes sure that it is more than just a concept – it is a dynamic, living part of our everyday operations that guides us in ensuring that every team member, and everyone touched by our work, returns home safe every day.
Integrating safety across a growing business
In the past year, we have not only maintained but strengthened our safety culture across all levels of the Group, including our strategic acquisitions. Our unified approach, driven by the proprietary OCU One platform, now delivers a consistent safety message and method across our expanded operations. This system ensures that our comprehensive safety standards are a fundamental part of the daily operations throughout the Group, generating a common and informed safety culture.
Advanced safety through digital transformation
Proactive safety engagement Our safety engagement is proactive and engaging, highlighted by our quarterly
Our commitment to innovation continues to enhance our safety initiatives. The integration of sophisticated technologies like remote video technology within our horizontal directional drilling team and our industry-leading OCU One platform enables real‑time safety monitoring and incident management. These tools not only streamline our safety processes but also enhance the effectiveness of our safety interventions. Visible commitment to safety On-site visibility of our safety commitments is supported by PPE which includes a ‘Think Safe’ visual - part of our ‘Think Safe + Work Safe = Home Safe’ mindset logo, to serve as a constant reminder of our core safety principles. This visibility is complemented by the OCU One app, which has become an essential tool in our safety toolkit, allowing for the immediate recording and dissemination of safety data and communications across the Group. Our teams are all empowered with ‘Stop Work Authority', allowing them to bring an immediate end to unsafe practices.
stand‑downs, which have become key events for reinforcing our safety culture. These sessions provide valuable safety insights and foster an open dialogue on safety trends and strategies, enhancing our collective commitment to a safe working environment. A culture of continuous safety improvement As we continue to evolve and grow, our approach to safety matures with us, becoming more integrated and far-reaching throughout our operations. This progression is not just about maintaining safety but enhancing it, ensuring that as we accelerate change and shape futures, we are also learning from and setting new benchmarks for safety in the industry. Our journey towards a safer tomorrow is continuous, driven by our commitment to innovation, leadership, and the wellbeing of our people and the communities we serve.
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Our culture accelerates our future How we do it
A culture of safety and respect Safety is our overriding priority – non‑negotiable and uncompromised. Our culture of safety is more than a protocol, it’s a way of life at OCU, embedded through continuous training and reinforced by every member of our team, from the newest recruits to our executive leaders. This commitment is mirrored in our respect for one another and our clients, generating a work environment where every voice is valued and every contribution matters. Keeping our values at the centre of everything Our culture is the driving force behind our achievements and the base of our client partnerships and operational excellence. As we deliver against the complex backdrop of infrastructure development, our core values remain central to everything we do. This year our values have not only guided us but have accelerated us forward, enabling growth and innovation in every dimension of our operations.
Excellence for our clients and our people We prioritise safe and successful outcomes not just for our clients but for everyone touched by our work. This commitment is in every part of our daily operations, where our teams, equipped with the best tools and training, strive to be better every day. Our office teams and field operatives work together, ensuring that every milestone is met with excellence and every client need is anticipated and addressed. Embracing sustainability as our mission Aligning with global sustainability goals, we are steadfast in our commitment to environmental stewardship. Our efforts extend beyond minimising our carbon footprint and involve proactive measures to enhance the ecological and community landscapes in which we operate. From reducing emissions to implementing sustainable technologies, our team is dedicated to maintaining and advancing our green initiatives.
One Company United Outstanding Culture Upheld
As we expand our services and capabilities, our culture remains our compass; guiding our growth, shaping our strategies, and ensuring that we remain a leader in infrastructure design and development. It’s the glue that binds our team, fuels our innovations, and secures our future. We are powered by a culture that is uniquely OCU. We are ‘One Company United’ with an ‘Outstanding Culture Upheld’.
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Expanding our reach, enhancing our impact How we do it
As OCU Group accelerates change and shapes futures across the UK, our strategic expansion boosts our ability to deliver comprehensive services nationwide. By investing in our operational bases and co-locating multiple market services, we’re not just growing – we’re adapting to fulfil and be ready for the future demands of our dynamic markets.
Strategic locations for nationwide coverage
Driving community growth and employment
Our operational footprint spans the entire UK, anchored by our head office in Stockport which co-ordinates a network of regional bases. This national spread allows us to swiftly and efficiently respond to any client need, anywhere in the UK. Key regional hubs, including our advanced support offices in all seven regions, are pivotal in reinforcing our capacity to manage and deliver services seamlessly across all regions. This year, we have recategorised and streamlined our sites, developing an estate of long-term, large-sized offices and depots that support scalable and sustainable pan-business unit activity.
Our commitment to regional development has tangible benefits for the communities where we operate. As our sites expand and our projects increase in frequency and scale, we are a major contributor to local job creation. Notably, a contract for VMO2 in the last financial year secured over 500 jobs across three regions, illustrating the significant economic impact of our operations. 24/7 excellence through our National Operations Centres Our National Operations Centre (NOC) in Leeds is supported by our Preston office, forming a resilient duo that guarantees exceptional service delivery and system reliability. These centres offer 24/7 support, ensuring uninterrupted service and rapid response capabilities. By operating in tandem, they provide a fail-safe operational backbone, crucial for maintaining service continuity and handling any major business continuity challenges. Looking ahead As OCU Group continues to grow, our strategic site expansion is integral to our plan to not only meet current needs but also anticipate and shape future demands. This forward-thinking approach makes sure that OCU remains a leader in the energy transition, utility and digital infrastructure services markets, ready to meet the evolving needs of the UK, Ireland and beyond.
Co-locating services for enhanced efficiency We continue our long-term strategy of
co‑locating multi-sector services in single locations. This continues to be supported by new acquisition locations, streamlining our operational efficiency and providing stronger client outcomes. Clients benefit from OCU’s full service offering locally within their region, benefiting from our comprehensive capabilities and expanding service teams. This approach not only simplifies framework, project and program execution but also amplifies our ability to handle end-to-end projects and programs effectively.
1. Scotland 2. Yorkshire & North-East 3. North-West & North Wales 4. Midlands & East 5. South-West & South Wales 6. London & South 7. Ireland
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OCU Group operates 41 core locations across seven regions, serving all parts of the UK geographically. Locations comprise an HQ in Stockport, regional hubs (nine), core depots (seven), support offices (twelve), and small depots (twelve).
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Our heritage and FY25 highlights
For over three decades, since our founding in 1994, we have been at the forefront of delivering essential services, transforming from a start-up into the UK’s leading services provider for energy transition, utilities, and digital infrastructure. Our journey is marked by a commitment to excellence and a positive impact on the communities we serve, accelerating change as we continue to shape the future of our organisation. Here is a summary of the Group’s milestones and the key events in FY25.
OCU wins RoSPA Order of Distinction Award – marking 15 consecutive Gold Awards – and RoSPA Fleet Safety Gold Award
OCU maintained Gold partner status for Armed Forces Covenant
OCU achieved Gold status in the 5% Club for early careers training and achieved 7%
OCU surpassed 5,000 people working in the UK every day
OCU released its first dedicated Sustainability Report, please see page 55
OCU acquired Modus Utilities, Northavon Group, Integrum Power Engineering, Hornbill Engineering, and Insiris
OCU secured a number of energy transition projects following the successful integration of Hornbill, Integrum, Modus, and RJ McLeod into the Group
OCU acquired FKS, Opals, InICT, and Andrews Associates
OCU acquired by Triton Partners
2025
2024
2023
2022
OCU introduced the UK’s first e-hotbox, setting new safety standards
OCU Group (OCU) formed
2014
OCU acquired Nettworx
OCU acquired RJ McLeod
OCU introduced ‘George’, the UK’s largest pipe pusher, accelerating project timescales and minimising community disruption
Acquired OCU Services (formerly Instalcom)
2002
OCU acquired Purestream and McCormack Drilling
OCU won VMO2 fibre maintenance contract and won the Northern Powergrid framework contract
OCU Utility Services founded
1994
OCU National Operations Centre fully functioning 24/7/365
Calendar years
FY25 key events
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Market opportunity
Energy Transition market
UK non-regulated energy transition market outlook
Wind power (onshore & offshore cabling)
Wind already contributes over 80TWh/year of UK electricity, and the Energy Act 2023 continues to streamline grid integration – ensuring sustained demand for OCU Group’s capabilities as the UK’s wind market expands towards 2030. Battery energy storage systems (BESS) Energy storage is scaling up dramatically to support renewable integration. The UK currently has ~2.1GW of operational battery storage (BESS) out of ~4.7GW total storage including pumped hydro. Analysts project utility-scale BESS will surge to around 24GW by 2030, attracting £15–20bn in investment. In fact, the government’s ambitious target is ~30GW of total storage by 2030 (covering batteries, hydro, and other technologies). Policies are facilitating this growth: planning size limits for batteries have been lifted, and the National Energy System Operator forecasts significant storage needs to reach a ~50%+ renewables share by 2030. 2024 saw a 64% increase in storage capacity (7.4GW added) with BESS technology leading the way. This market will continue to grow with Long Duration Energy Storage being the next step towards balancing renewable generation. This scale-up of BESS – providing grid balancing, frequency response, and peak shifting – is crucial to the energy transition. It also represents a fast-growing market for OCU’s services in battery storage program delivery and network integration.
The UK’s wind power capacity, an essential contributor to its clean energy goals, reached over 30GW in 2024 – comprising 15.5GW of onshore wind and 14.8GW of offshore wind – making the UK a world leader in offshore generation. Significant expansion is underway, with the UK Government aiming to roughly double onshore wind capacity by 2030 (~30GW nationwide) and to increase offshore wind to 43–50GW (including 5GW of floating wind), underpinned by annual Contracts for Difference auctions and supply chain investments. While OCU Group does not participate in the offshore wind construction market given its risk profile, we play a key role in enabling offshore projects through our specialist horizontal directional drilling (HDD) services. These allow the landing of offshore cabling and onshore connection points via underground ducting, preserving sensitive shorelines by avoiding surface disruption from land to seabed. In the onshore wind sector, OCU Group actively supports the continued scale-up of UK capacity, particularly in Scotland, and is well positioned to do the same in England following the lifting of moratorium in July 2024. We provide critical infrastructure services including construction, grid connection, HDD, and maintenance.
The UK’s non-regulated energy transition market, including, inter alia , onshore/offshore wind, solar PV, battery storage, synchronous condensers, EV infrastructure, and green hydrogen, is experiencing unprecedented growth. Supportive government policies (e.g. Energy Act 2023, Net Zero Strategy, Clean Power 2030) and private funding (e.g. the National Wealth Fund and GB Energy) are triggering investment across these technologies, creating a significant and expanding addressable market for OCU. The UK is committed to a fully decarbonised power system by 2030, with interim 2030 targets and ambitions backing accelerated deployment today.
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Market opportunity
Energy Transition market
EV charging infrastructure Transport electrification is driving a rapid build‑out of charging infrastructure. In July 2025, the UK had 84,218 public EV charge points installed, a 60% increase on the December 2023 number. The government’s EV Infrastructure Strategy targets around 300,000 public chargers by 2030, a nearly ten‑fold expansion from 2020 levels, backed by over £2bn in public investment and partnerships. Crucially, a Zero Emission Vehicle (ZEV) mandate is now law, requiring 80% of new car sales to be zero-emission by 2030 (100% by 2035). This mandate, alongside fuel duty incentives and consumer uptake (over one in five new cars are already plug‑in electric as of 2024), ensures accelerating demand for charging infrastructure. High-power charging hubs, motorway corridor chargers, and residential solutions are all scaling up. For OCU, the planned growth to 300,000 chargers represents a robust pipeline of large‑scale installation projects over the coming years. OCU sees depots and destinations as the key emphasis for activity in this market space, each needing end‑to-end energy connection projects that involve grid connections and charging infrastructure. Our expanding client base includes Charge Point Operators (CPOs), commercial and bus fleet operators, and small to medium-sized enterprises. This diversity has allowed us to tailor our services to suit clients at every stage of their EV transition, from early adopters to experienced operators.
Solar PV Solar PV deployment in the UK is also accelerating. 15.8GW of solar capacity was installed as of March 2024, and the government has set a target to increase this nearly five‑fold to 70GW by 2035. Reaching this would require record annual installations through the 2020s. Policy support is strong: the British Energy Security Strategy (2022) announced plans to ease planning for large solar farms and a new Solar Taskforce is developing a 2035 roadmap. Solar output is expected to play a major role in achieving the UK’s 2030s clean power goals, alongside wind. With solar PV costs falling and 20GW of capacity expected to be online by the end of 2025, the outlook is one of accelerated growth. For OCU, this translates into expanding opportunities in solar farm development and grid connections as the nation adds dozens of gigawatts of PV capacity. Since joining the Group in July 2025, AEC brings significant experience to our Group-wide solar capabilities. Green hydrogen Hydrogen is an emerging yet strategically important market in the UK’s energy transition. The government doubled its low-carbon hydrogen ambition in 2022, targeting up to 10GW of production by 2030, with at least 5GW delivered via electrolytic (green) hydrogen, and the remainder expected largely from blue hydrogen via carbon capture and storage (CCS) processes.
This supports decarbonisation in hard‑to‑electrify sectors such as industry and heavy transport, and enables energy storage at scale. To accelerate development, the government has implemented a Hydrogen Production Business Model (HPBM) for revenue support and a £240m Net Zero Hydrogen Fund (NZHF) for capital grants. In 2023, the first allocation round (HAR1) awarded revenue support to eleven projects totalling approximately 125MW of electrolyser capacity, with an additional 34MW funded via NZHF. As of July 2025, five HAR1 projects have signed Low Carbon Hydrogen Agreements, totalling 66MW, with more contracts expected shortly. A second allocation round (HAR2) closed to applications in April 2024 and is targeting up to 875MW of new electrolytic capacity. In April 2025, 27 projects were shortlisted and are currently undergoing due diligence and cost assurance. These projects are expected to come online between 2026 and 2029. The UK’s leading industrial clusters – Humber, Teesside, Merseyside, South Wales – are primarily focused on blue hydrogen, supported by natural gas reforming and CCS infrastructure. Examples include Equinor’s H2H Humber, BP’s H2Teesside, and the HyNet project in North West England, all of which target blue hydrogen production at scale. Green hydrogen projects such as HyGreen Teesside are also emerging, particularly where renewable power is abundant.
Green hydrogen continued The Energy Act 2023 has strengthened investor confidence by formalising regulatory frameworks for hydrogen networks and carbon storage. Although still nascent, the UK hydrogen market is scaling rapidly, with a trajectory from near-zero in 2022 to nearly 1GW by 2029 and 10GW by 2030. This presents significant long-term opportunities for OCU in constructing hydrogen production facilities, pipelines, storage, and electrical infrastructure.
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Market opportunity
Energy Transition market
Outlook Across these segments, broad UK Government support from the Net Zero Strategy to the Energy Act 2023 and Clean Power 2030 has cemented long‑term climate targets and unlocked funding mechanisms that reduce private investment risk. The National Wealth Fund alone is set to mobilise over £70bn of private capital into clean energy industries including renewables, hydrogen, and EV battery production and charging stations. This positive policy environment and the ambitious 2030 targets for wind, solar, storage, EVs, and hydrogen indicate strong sustained growth ahead. For OCU, this represents a rapidly expanding addressable market aligned with its core infrastructure capabilities, a trend that is expected to drive significant business volume through 2030 and beyond. In particular, OCU is increasing its consideration of early-stage technologies within the energy transition, including district heating and carbon capture. Each of these sectors offers growing opportunity and clear alignment with government‑backed infrastructure demand for clean energy projects and programs.
International outlook: North America and Australia
North America: Clean energy development across North America continues to progress. In 2024, the US added a record volume of new generating capacity, led by utility-scale solar and battery storage. This momentum is expected to continue in 2025, driven by regional demand growth, grid upgrades, and favourable market conditions in key states such as Texas and California. Canada remains committed to increasing the share of non-emitting electricity on its grid. Provinces including Alberta, British Columbia, and Ontario are expanding wind, solar, hydroelectric and nuclear capacity as part of longer-term clean energy strategies. National goals remain in place for 90% non-emitting electricity generation by 2030 and a full transition to zero-emission new vehicle sales by 2035. Overall, the pace of infrastructure investment and the continued integration of renewables and storage across both countries reflect a growing role for low-carbon technologies in North America’s electricity systems. These developments present potential opportunities in generation, transmission, and storage infrastructure. Australia: Australia is undergoing a clean energy transformation with a federal target of 82% renewable electricity by 2030. This requires a significant scale-up of wind and solar – roughly a four-fold increase in generation from 2022 levels by 2030, and the build-out of new transmission and storage. Energy programs are in development, including large onshore wind farms and utility‑scale solar in Renewable Energy Zones, supported by state-level renewable targets. Utility‑scale batteries are being commissioned to bolster grid reliability (e.g. the 300MW Victorian Big Battery and others), and pumped hydro (Snowy 2.0, 2,000MW) is under construction to provide firming capacity. Australia is also investing in green hydrogen for export and domestic industry (with at least seven hydrogen hubs co-funded by government across the country), leveraging its vast solar and wind resources. EV uptake, while initially lagging, is growing as the government introduces fuel efficiency standards and purchase incentives. In summary, both North America and Australia show growing clean energy markets, mirroring the UK’s and EU’s renewable transition and opening additional international opportunities in wind, solar, storage, EV charging, and hydrogen development. The UK’s advanced grid decarbonisation presents opportunities for knowledge sharing across markets.
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An example of how we are realising the market opportunities OCU Energy Transition
Case study | Energy Transition
Battery Energy Storage Systems (BESS)
Eccles | Zenobe
Program overview This 400MW BESS program represents a major step forward in enhancing grid flexibility and renewable energy integration. Delivering for Zenobe, the facility is being constructed on a 20‑acre site near Eccles Substation. Once complete it will offer 400MW of export capacity and 800MWh of usable energy storage, supporting a more stable, sustainable and secure energy system.
Challenge The program demands close co‑ordination across a large, multi-disciplinary team to meet ambitious delivery timescales and technical standards. Key challenges include managing simultaneous site operations, maintaining safe and uninterrupted access for horizontal directional drilling (HDD) and vehicle movement, and ensuring system integrity through careful cable installation and interface control. The complexity of integrating new infrastructure with existing systems, while maintaining strict safety and environmental compliance, requires agile planning and proactive stakeholder engagement.
Solution OCU has deployed a full suite of Group capabilities across the project, from design development through to procurement and construction. Our teams are delivering electrical installation, trenchless technology, commissioning, and civil works. Our use of Modern Methods of Construction (MMC), including off-site build techniques, is helping to reduce timescales, minimise disruption, and enhance on-site safety and quality. Collaboration between established and recently acquired OCU Group businesses enabled the project through shared expertise. Early site surveys planned cable routes and allowed for strategic mobilisation of equipment. Cable trenches follow approved pathways with rigorous safety compliance, and all jointing and terminations undergo thorough testing to guarantee connection integrity. Ongoing dialogue with stakeholders ensures design intent is maintained while meeting local and energy objectives. This integrated approach helps us maintain momentum across all workstreams.
Outcome The Eccles BESS will deliver
significant long-term benefits for the UK’s energy system, delivering large‑scale storage to help balance demand, reduce emissions, and enable greater use of renewables. While construction is ongoing, the project already demonstrates OCU’s ability to lead complex infrastructure programs with confidence, combining in-house expertise, modern techniques, and proactive stakeholder collaboration. The project reflects our commitment to accelerating the energy transition through technically robust, future-ready solutions that serve both national strategy and local communities.
The program is central to wider infrastructure upgrades designed to support the Scottish Government’s long-term energy strategy. Key facts • 400MW export/800MWh storage capacity • 20-acre site near Eccles Substation • Enabling works began in December 2024 with full mobilisation in March 2025 • Using full in-house capabilities including design, civils, HDD and electrical installation • Modern Methods of Construction (MMC) used to reduce timescales and improve safety
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Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
Market opportunity
Regulated Power
UK regulated electricity infrastructure market overview
Key programs and future initiatives
Accelerated Strategic Transmission Investment (ASTI) Ofgem has introduced the ASTI framework to fast-track critical grid projects needed for net zero. ASTI is streamlining delivery of 26 major onshore transmission upgrades (worth ~£20bn) by 2030. These projects – identified in the ESO’s 2022 Holistic Network Design – are being accelerated to make sure the network can connect up to 50GW of offshore wind by 2030, reinforcing the stability and growth of the transmission investment program. DNO to DSO transition Distribution network operators are evolving into distribution system operators (DSOs), actively managing energy flows and local markets. This transition involves deploying smart grid technologies to integrate distributed generation and flexibility services. By enabling more dynamic, two-way power flows, DSOs can leverage low-carbon flexibility (e.g. demand response, storage, EVs) to defer traditional reinforcement and reduce costs. All DNOs have DSO roadmaps under RIIO-ED2, positioning the sector for greater digitalisation and efficient network use.
Smart grid and flexibility programs Smart grid reinforcement is a core theme in RIIO-ED2, backed by funded innovation and digitalisation initiatives. DSOs are rolling out advanced monitoring, automation, and data systems to enhance network visibility and resilience. They are also expanding flexibility markets, procuring services from distributed energy resources to manage peak demand and voltage, which creates new opportunities for OCU. Ofgem notes that increased use of digital technologies and time-of-use pricing will give consumers more control and unlock flexibility benefits across the grid. These measures support a reliable, future-ready distribution network that can accommodate rapid electrification while maintaining stability for investors.
Distribution network operators (DNOs) (RIIO‑ED2 and ED3) The UK’s electricity distribution sector, spanning 14 licensed DNOs across England, Scotland, and Wales, is entering an accelerated investment cycle under Ofgem’s RIIO‑ED2 price control (2023–2028). Ofgem’s final settlement authorises an initial £22bn+ in total expenditure over five years. This funding enables critical upgrades to accommodate surging demand from millions of new electric vehicles and heat pumps, while connecting growing volumes of local low-carbon generation. RIIO-ED2 thus marks a five‑year program of network reinforcement and expansion, aimed at maintaining average consumer distribution charges. Looking ahead, RIIO-ED3 (from 2028) is expected to build on this momentum. Industry planning has signalled that the scale and pace of investment in RIIO- ED3 will be greater than seen before, as DNOs ramp up capacity for further electrification and net-zero targets. This stable regulatory framework makes sure DNOs can earn a fair return on a growing regulated asset base, highlighting the size and stability of the addressable market for investors. Transmission network operators (TNOs) (RIIO-T2 and T3) Transmission operators are similarly scaling up. Under RIIO-T2 (2021–2026), the three GB electricity TNOs (National Grid Electricity Transmission, Scottish Power Transmission, and SSEN Transmission) are investing heavily to reinforce the high-voltage grid for renewables integration and reliability. Ofgem’s RIIO-T2 determinations set baseline allowances in the low tens of billions of pounds across the transmission sector, funding projects such as new substations and upgraded lines to accommodate offshore wind and new generation. In addition, adaptive funding mechanisms are enabling extra strategic projects, notably the Holistic Network Design for offshore wind, to proceed within the T2 period. Looking forward, RIIO-T3 (from 2026) is poised to drive a step‑change in grid expansion. National Grid’s draft RIIO-T3 business plan alone proposes up to £35bn of transmission investment from 2026–2031, reflecting an unprecedented build-out of capacity. This includes significant reinforcements and new routes to deliver clean energy nationwide. The regulated transmission market offers substantial long-term growth with stable, inflation-linked revenues under the RIIO model.
15
Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
Market opportunity
Regulated Power
Outlook The UK’s drive to decarbonise power, heat and transport as well as significant investment in large data centres is raising electricity demand and requiring an estimated £60bn of cumulative grid investments by 2030. Ofgem’s regulatory frameworks (RIIO-2) provide predictable returns to finance major upgrades like new substations and higher-capacity cables for electric vehicles and heat pumps. Internationally, grid spending hit a record $310bn in 2023 (up 5% year on year), yet far more is needed. For example, the EU estimates ~$636bn (€584bn) in grid investment is required to meet its 2030 clean energy targets. This surge in expenditure, underpinned by policy support and regulated asset models, positions transmission and distribution assets as an expanding market for services companies.
International outlook: North America and Australia
North America : Transmission infrastructure investment is gaining pace in Canada as provinces expand grid capacity to support electrification and renewable integration. Utilities such as Hydro-Québec, BC Hydro and Ontario’s IESO are progressing major transmission projects, including Hydro-Québec’s $100bn 2035 plan and Ontario’s regional build-outs. Federal support via the Smart Renewables and Electrification Pathways (SREP) program and Canada Infrastructure Bank financing is enabling project delivery. In the United States, new federal rules (FERC Order 1920) require long-term transmission planning, with regional grid operators now preparing implementation plans. Forecasts point to a potential 60% increase in transmission capacity by 2035 to meet demand from data centres, electrification and clean energy. These factors create long‑term opportunities across engineering, construction and grid integration. Australia is undertaking a wide-reaching grid transformation to enable its net‑zero transition. The Australian Energy Market Operator’s latest integrated system plan calls for ~4,600km of new transmission by 2030 to connect the renewables that will replace retiring coal plants. In total about 10,000km of new lines are needed by 2050, requiring tens of billions in investment. The federal Rewiring the Nation program (A$20bn) is helping finance priority projects, ensuring the necessary network infrastructure is delivered on time. These international markets underscore the strong, stable outlook for regulated grid investments – characterised by rising capital deployment and reliable returns under supportive regulatory frameworks.
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