Strategic report
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24 OCU Group Annual report and financial statements 2026
Operational review continued United Kingdom market review
Power Transmission & Distribution A stronger distribution platform, extended into transmission through trusted delivery, targeted capability investment and increasingly integrated execution.
FY26 progress Power Transmission & Distribution entered FY26 with a strong base in regional distribution frameworks. During the year, activity continued to grow through established relationships with Northern Powergrid and Scottish and Southern Electricity Networks, alongside work for Scottish Power Energy Networks, UK Power Networks and National Grid Electricity Distribution. The progression was driven principally by framework awards, renewals and increased scope with existing clients, including Cable Engineering Services Contract activity for Northern Powergrid, ED2 construction frameworks for SSE and a broader relationship with National Grid Electricity Distribution that combined HDD and cabling. A significant strategic development was the extension of activities into transmission. The Group is increasingly leveraging and combining OCU Utilities' network experience with OCU Energy's high-voltage engineering, RJ McLeod's specialist civils and McCormack Drilling's HDD capability. The Orkney-Caithness 220kV landfall program illustrates this model: the scope comprised the design and installation of two 1,200-metre and two 850-metre landfalls to connect the Orkney cable to the mainland, with early design and risk allocation used to manage complex ground and weather conditions.
Capability was added through transformer build and refurbishment, overhead-line expertise and targeted senior appointments. OCU strengthened its transmission capabilities across EHV substations, underground cabling and overhead lines through key appointments and increased operational expertise. This progress, including transformer build and refurbishment capability, supported entry to National Grid Electricity Transmission’s Qualifying Utilities Dynamic Market for substation construction, broadening access to future electrical, mechanical and infrastructure packages. Market conditions The market outlook is supportive across transmission and distribution. OCU’s serviceable addressable UK regulated power market is projected to grow from approximately £1.8bn in FY25 to approximately £4.9bn by FY31, with ~19% CAGR applying to the period FY26 to FY31 (£2.1bn to £4.9bn). This growth reflects both the reinforcement of ageing assets and the new capacity required for renewable generation, storage, transport electrification, and large industrial loads.
FY26 marked an important step in the development of our regulated Power Transmission & Distribution platform offering to the market. We continued to expand established distribution relationships while bringing together high-voltage design, substations, transformers, specialist civils and HDD to address a broader transmission scope. The progress has been grounded in delivery performance and client trust, not in pursuing scale for its own sake. David Dunne Managing Director, Power Transmission & Distribution
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