Financial Data and Key Metrics Changes - Revenue increased by £297.8 million, up 9.3% year-on-year, with EBIT performance up 2.3% at £44.6 million [7][8] - EBIT margin slightly decreased due to National Insurance and minimum wage cost increases [8][10] - Cash conversion returned to a normal phasing of about 65% for the half year, with a projection of over 90% for the full year [8][21] Business Line Data and Key Metrics Changes - Climate Management Solutions saw an 8% like-for-like revenue growth, driven by strong sales in residential ventilation [13] - Water Management Solutions experienced just under 3% like-for-like growth, with notable demand for stormwater attenuation systems [15] - Sustainable Building Solutions achieved approximately 8% growth, with targeted share gains in drainage following a competitor exit [19][38] Market Data and Key Metrics Changes - The overall market volumes are described as broadly flat, with specific segments like residential new build expected to see low single-digit growth [3][53] - The commercial market remains challenging due to project approval backlogs, impacting larger projects [56] Company Strategy and Development Direction - The company focuses on sustainable solutions for growth, emphasizing organic growth and strategic M&A in climate and water management [23] - The AMP8 spending cycle is expected to double spending from AMP7, presenting significant opportunities in stormwater management [25] - The introduction of the Future Home Standard is anticipated to drive deeper solution sales in underfloor heating and ventilation [26] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in achieving EBIT margins that will improve sequentially in the second half of the year [46] - The company acknowledges the external environment remains challenging but is focused on building its own growth [46] - There is optimism regarding the medium-term prospects for the water management business, despite current challenges [32] Other Important Information - The company has a progressive dividend policy, with an increase in dividend per share reflecting confidence in long-term business direction [4][8] - The leverage of the business is down to one time, providing strategic optionality for disciplined M&A opportunities [8][22] Q&A Session Summary Question: Can you split the 6.1% like-for-like growth between price and volume? - Approximately one-third of the growth was due to price and two-thirds from volume, with volume generated through product adoption and market share gain [51] Question: What are the expectations for margins in the full year? - The company expects to deliver an EBIT number in line with consensus and a margin that will be larger in the second half than in the first [52] Question: What is the outlook for residential new build and RMI? - Residential new build is expected to be up low single digits, while RMI remains tepid due to low consumer confidence and interest rates [53][54] Question: What is the focus of the M&A pipeline? - The focus is on acquisitions that enhance product and solution capabilities, primarily in the UK market, with potential for European expansion in the future [60][61] Question: How do you plan to scale the small acquisitions made? - The small acquisitions have potential in large markets, and the company is focusing on total solutions to improve profitability over time [63][64] Question: Can you elaborate on the inventory provision in WMS? - A £900,000 provision was made for slow-moving stock, which is a one-off and not expected to repeat [100]