OCU Group Delivers Strong Operational Growth Amid Strategic Expansion Drive

Despite reporting a widened pre-tax loss, infrastructure specialist OCU Group has posted strong operational performance, underscoring the resilience of its core business and the success of its ambitious growth strategy.

For the most recent financial year, the private equity-backed firm reported a pre-tax loss of £64 million—double the £31 million recorded in the previous period. The increase was largely due to higher interest charges on £656 million in borrowings, non-cash goodwill amortisation related to acquisitions, and one-off refinancing expenses.

Strong Core Performance

Beneath the headline figures, the company demonstrated impressive momentum. Adjusted operating profit soared 69% to £99 million, while operating margins improved to 11.2%, up from 9.6% the year before. Statutory operating profit after exceptional items reached £28.1 million.

This performance reflects the continued strength of the group’s core operations, supported by growing demand across its key sectors—energy, utilities, and digital infrastructure.

Revenue Growth Driven by Strategic Acquisitions

Top-line growth was achieved through a combination of 11% organic revenue increase and strategic acquisitions. The company added specialist firms including civil engineering contractor RJ McLeod, water industry design expert Purestream, and trenchless technology provider McCormack Drilling to its portfolio.

These acquisitions significantly enhanced the group’s scale and delivery capability, particularly in energy and water infrastructure, and trenchless technology. Additionally, a post-year-end acquisition of a majority stake in Australia and New Zealand-based AEC marked OCU’s entry into the Asia-Pacific region, reflecting its growing international ambitions.

CEO Highlights Strategic Focus

Chief Executive Michael Hughes emphasized the group's disciplined and targeted approach to acquisitions:

“OCU Group has developed a strong platform for sourcing, executing, and integrating strategic acquisitions,” he said.“We maintain rigorous standards, engaging only with companies that meet our high criteria for cultural alignment and commercial rigour, completing around one in every twelve potential transactions.”

Positioned for Long-Term Growth

Looking ahead, Hughes expressed confidence in the long-term fundamentals supporting the business.

“The long-term structural drivers in the UK’s energy transition, digital connectivity, and regulated utilities markets remain clear and compelling," he stated.

Major national investment programs—including Ofgem’s RIIO-ED2, Ofwat’s AMP8, Project Gigabit, and Scotland’s ScotWind—represent significant opportunities aligned with OCU’s expertise and service offerings.

“The scale and duration of these programs provide a resilient platform for growth, even in the face of broader macroeconomic volatility,” Hughes added.