Wednesday 23 October 2019
Nexus Infrastructure plc
('Nexus' or the 'Company')
Trading Update and Notice of Results
Profits for the full year expected to be in line with market expectations
Nexus Infrastructure plc (AIM:NEXS), a leading provider of essential infrastructure services to the UK housebuilding and commercial sectors, announces a trading update ahead of its annual results for the financial year ended 30 September 2019, which will be announced on 10 December 2019.
The Board expects the Group's profits for the full year ended 30 September 2019 to be in line with market expectations.
The Group's divisional revenues have increased year-on-year: Tamdown will achieve high single-digit percentage revenue growth. TriConnex will deliver strong revenue growth following an overall increase in the number of projects secured and the acceleration of certain projects in the period; and eSmart Networks continues to successfully scale-up.
The Board is encouraged by the level of growth in each of the Group's order books. Since last year end Tamdown's order book is up by 6% to £151.6m, TriConnex up by 26% to £184.8m and eSmart Networks up £1.7m to £2.5m. The Group order book ended the year at £338.9m, a 17% year-on-year increase which provides Nexus with good visibility of earnings for the year ahead.
The Group is also pleased to report a continued high cash and cash equivalent balance of £27.4m (2018: £26.4m), resulting in net cash of £22.6m (2018: £20.0m).
The Board believes that the Group is in a strong position to deliver consistent organic growth, aided by the structural undersupply in the UK housebuilding market and Government stimulus for the sector but like many industry suppliers, we continue to experience caution as a result of the continuing political backdrop.
Commenting on the Group's performance, Mike Morris, Chief Executive Officer, said:
'I am pleased to report that the Group is trading in line with expectations which we revised earlier this year. The underlying demand in the UK housing market remains strong and Nexus is well-positioned within the structurally under supplied and Government-backed housing market. I am particularly encouraged by the progress made by TriConnex this year and the potential within eSmart Networks. The continued growth in our order book provides us with strong visibility of future earnings and gives us confidence in the future.'
Nexus Infrastructure plc
Michael Morris, Chief Executive Officer
Alan Martin, Chief Financial Officer
Tel: 01376 320856
Numis Securities Limited
(Nominated Adviser & Broker)
Oliver Hardy (Nomad)
Tel: 0207 260 1200
Financial Public Relations
Tel: 0203 757 4992
Notes to Editors:
Nexus is a leading provider of essential infrastructure services to the UK housebuilding and commercial sectors. The Group comprises: Tamdown, a provider of specialised civil engineering, infrastructure and concrete frame services; TriConnex which designs, installs and connects utility networks to properties on new residential and commercial developments; and eSmart Networks which focuses on electric vehicle charging and smart grid infrastructure.
Tamdown has a well-established market position having been in operation for over 40 years and currently counts amongst its customers the majority of the top ten largest UK housebuilders. TriConnex was established in 2011 to take advantage of deregulation in the utilities market with the goal of being recognised as the UK's leading independent provider of utility connections to new developments. eSmart Networks was set up in 2018 to respond to the UK's need for charging infrastructure as the transition from internal combustion engine vehicles to electric vehicles gathers pace.