10th Dec 2018 10:12
LONDON (Alliance News) - Nexus Infrastructure PLC on Monday said profit was improved by cost cuts in its recently ended financial year, despite flat revenue, while a growing order book suggests a positive new year.
The infrastructure services provider said pretax profit in the year to the end of September grew by 25% to GBP9.2 million from GBP7.4 million reported a year ago, despite revenue being essentially flat at GBP134.9 million from GBP135.0 million.
Administrative expenses for the year totalled GBP18.2 million, down 7.1% from GBP19.6 million reported a year earlier.
Revenue in the Tamdown division was 2.9% lower at GBP102.5 million compared to GBP105.6 million reported the year before, due to the delays in building site commencement. Tamdown provides infrastructure services to UK housebuilders
TriConnex, a utilities connection business, saw revenue grow by 9.3% to GBP32.2 million from GBP29.5 million the year prior.
eSmart Networks, which was launched in June, delivered GBP300,000 revenue in the period and is well positioned to capitalise on a significant market opportunity, Nexus Infrastructure highlighted.
eSmart Networks was created to provide electric vehicle charging infrastructure, battery storage, and specialised distribution services.
The order book in the year increased by 43% to GBP289.7 million, aided by growth in each division on the back of the strong demand from customers during the year, Nexus Infrastructure said. The growth in order book provides it with good visibility for the year ahead, it said.
Nexus increased its interim payout 4.8% to 2.2 pence a share from 2.1p paid the year prior.
"Looking ahead, whilst there is continued general uncertainty posed by the forthcoming exit from the EU, the fundamental market growth drivers for our business are positive," said Nexus Chief Executive Mike Morris.
"Our continuing strong order book, coupled with our strong balance sheet means Nexus is well positioned to deliver further growth," added Morris.
Nexus shares were trading up 0.3% on Monday at 181.49 pence each.
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