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31 OCU Group Annual report and financial statements 2026
Operational review continued United Kingdom market review | Water & Environmental
Market conditions OCU’s serviceable addressable UK water market is projected to increase from approximately £4.1bn in FY25 to approximately £6.2bn by FY31, equivalent to compound annual growth of 7%. The market is underpinned by statutory and regulatory requirements rather than discretionary short-term demand. Final determinations for AMP8 provide more than £100bn of total expenditure across UK water companies, almost double the level determined for AMP7. Beyond the core allowances, Ofwat has signalled a pipeline of more than £50bn of major water‑supply projects. The investment will not progress evenly. Early AMP8 delivery has required clients and supply chain partners to sequence design, approvals, land, resources and delivery capacity before expenditure reaches full pace. That supports a balanced outlook: the long-term need for new water resources, mains renewal, leakage reduction, wastewater treatment and environmental improvement is substantial, while annual delivery will depend on program readiness and client mobilisation.
OCU’s response is to protect framework performance, build technical resource ahead of confirmed need and remain selective on major projects. Looking ahead The immediate priority is to translate the expanded capability base into consistent AMP8 delivery. This means extending the life of existing assets through targeted maintenance and renewal, while supporting new reservoirs, transfer pipelines, wastewater upgrades and nature-based resilience where OCU has relevant credentials. Growth will be pursued first through existing relationships and frameworks, then through carefully selected programs where the Group can combine design, engineering, specialist equipment and regional delivery.
Case study | UK | Active project Water Retaining Structures Framework South East England | Water & Environmental | Client: Affinity Water
OCU is delivering new service reservoirs for Affinity Water under the Water Retaining Structures Framework, supporting the Strategic Supply 2040 Programme to increase storage capacity and strengthen water supply resilience. The program includes the design and construction of reservoirs at multiple sites, using off-site manufactured precast panels and just-in-time delivery to reduce program duration, minimise site impacts and lower carbon emissions. The framework demonstrates OCU’s capability to deliver innovative water infrastructure that combines engineering excellence, environmental responsibility and long-term resilience for communities across the region.
Storage capacity per reservoir 20 million litres
Average design and build program
Framework duration 5 years
Delivery model Design and build EPC
Integrated, 18 months
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