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 2018 which will be announced on 10 December 2018.
The Board expects the Group’s profits for the full year ended 30 September 2018 to be in line with its expectations. The Board is encouraged by the level of growth in the Group’s order book which has been aided by growth in each of the Group’s divisions: Tamdown’s order book is up by 31% to £142.4m, TriConnex by 55% to £146.5m and eSmart Networks to £0.8m. The Group order book ended the year at £289.7m, a 43% year-on-year increase which provides Nexus with good visibility for the year ahead. The Group is also pleased to report a continued high cash and cash equivalent balance of £26.4m (2017: £27.1m), resulting in net cash of £20.0m (2017: £18.7m).
TriConnex will deliver an increase in revenue compared to the previous year, due to the continued growth across the division. Tamdown’s revenues will be marginally down on last year with a small number of Tamdown contracts having started later in the summer than expected, primarily due to planning delays. Due to our continued focus on margins and costs, operating profits for Tamdown and TriConnex, and for the Group overall, are expected to be in line with expectations.
Positive progress is being made with the nascent eSmart Networks business which is, post launch, continuing to be scaled up.
Commenting on the Group’s performance, Mike Morris, Chief Executive Officer said: “We are pleased to report that profits for the full year will be in line with our expectations. The significant improvement in the order book and the fact that we are attracting an even broader base of housing developers and affordable housing providers to our existing strong client base, provides us with confidence for our future growth plans and outlook for the business.”
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