18
Strategic report
OCU Group | Annual report and financial statements 2025
Governance
Financial statements
Market opportunity
Water
Adjacent infrastructure opportunities Beyond regulated utilities, adjacent infrastructure markets in water-related sectors are also expanding. The UK Government’s current £5.2bn flood defence program (2021–2027) is delivering ~2,000 new flood and coastal schemes to protect 336,000 properties. This sustained public investment in flood barriers, sustainable drainage and coastline reinforcement offers significant construction and engineering opportunities. In parallel, major harbour developments are underway as ports upgrade for trade growth and climate resilience. For example, Belfast Harbour has a £300m+ capital plan (2025–2029) to expand port facilities and waterfront infrastructure. The UK Government is also backing port improvements via targeted funds including a £160m scheme for offshore wind port upgrades. These adjacent markets complement water sector growth, leveraging similar engineering expertise and contributing to regional development and climate adaptation goals. Outlook The water infrastructure sector has embarked on a unique investment cycle, creating significant opportunities for the services supply chain. In England and Wales, regulator Ofwat’s 2025–2030 price review (PR24) approved £104bn for water and sewerage networks – nearly double the prior five-year spend. This will fund critical upgrades such as nine new reservoirs, 30+ new wetlands and targets a 50% reduction in storm overflow spills, addressing ageing assets and climate resilience. Internationally, the need is vast: the World Bank estimates up to $7 trillion must be mobilised by 2030 for global water infrastructure to meet UN Sustainable Development Goals. With governments raising standards for water quality and resilience, the market is seeing a growing pipeline of regulated water projects and public-private partnerships worldwide.
International outlook: North America and Australia
North America: There is substantial opportunity in water infrastructure across the United States and Canada. In the US, $50bn in funding under the 2021 Bipartisan Infrastructure Law supports lead pipe removal, wastewater upgrades, PFAS compliance, and resilience measures. Despite a brief administrative pause in early 2025, courts ruled that awarded funding cannot be withheld, enabling projects to proceed. While future discretionary budgets may adjust funding levels, active investments and established contracts provide a foundation for ongoing infrastructure delivery. In Canada, federal and provincial programs continue to fund treatment capacity expansions, distribution enhancements, and supply resilience. These co-ordinated efforts drive demand for engineering, construction, technology, and service providers in both urban and rural environments. Australia: Australian utilities and regulators are pursuing ambitious capital programs to bolster drought security and upgrade ageing networks. For example, Sydney Water’s latest regulatory proposal calls for A$16.6bn in capital works for 2025, aiming to service rapid population growth and enhance reliability. Across Australia, investments in desalination plants, recycled water schemes, and flood resilience projects are underway, supported by government initiatives and independent price regulators.
This stable, needs-driven investment climate in both regions mirrors the UK’s focus on sustainability and long-term infrastructure value.
Powered by FlippingBook