Technology, defence and infrastructure are among the biggest investment themes of the past five years, and the UK market is reaping the benefits of new structural growth phases in defence and infrastructure, driven by huge energy, digital and rearmament trends. Infrastructure is experiencing a super cycle: grid upgrades for clean electricity, the AI-related data centre boom, modernised defence systems, replacement of ageing assets, water repairs and a government housebuilding push are arriving at once. Improved project management and contract terms mean cost and margin risks have been vastly reduced.

BUY: Costain (233p). The UK-focused construction engineer reported adjusted pre-tax profit of £19mn on revenues of £543mn, both up 3 per cent, with operating margin unchanged at 3.2 per cent. Its forward work book stands at £7bn, helped by wins from water companies, HS2 and Transport for London, while Ofwat's approval of £3.4bn of water investment before 2030 is welcome news. Shares trade on 13 times 2027 earnings estimates — still value here.

BUY: Oxford Nanopore (130p). Adjusted ebitda loss more than halved to £22mn as gross margin improved 400 basis points, but its research division, 65 per cent of £116mn interim sales, grew just 5.4 per cent. Still positive.

HOLD: BHP (3,251p). Underlying profits of $13.2bn rose nearly one-third, with copper generating over half of cash profits and free cash flow up 83 per cent to $9.8bn. At 17 times forward earnings, ahead of Glencore and Rio Tinto, we move back to hold.