27th Apr 2018 09:33
LONDON (Alliance News) - Nexus Infrastructure PLC on Friday said it anticipates interim revenue and operating profit ahead of the prior year's, but warns on challenges in its TriConnex business.
The infrastructure services provider - which listed on London's AIM market in July last year - said its order book was GBP234.1 million at the end of March, representing a 30% increase year-on-year and 16% increase in the first half from GBP202.7 million at the end of September.
The Tamdown order book increased 18% to GBP118.4 million in the six months to the end of March and the TriConnex order book was up 44% year-on-year at GBP115.7 million.
Nexus said Tamdown is on track to meet 2018 operating profit expectations, ahead of 2017, as it continues to build on its strong market position. TriConnex also performed in line with the company's expectations, it said, growing its operating profit "marginally" ahead of the comparative period the year before.
However, for the full-year, Nexus expects TriConnex's revenue and operating profit broadly flat, as the conversion of its order book to revenue is now taking longer than in previous years. The delay is a result of TriConnex's early appointment in the land pre-construction stage, the company said, as it secured contracts with its customers prior to land acquisition.
Nexus said, during the year, it intends to invest around GBP600,000 in an electric vehicle charging start up, eSmart Networks. The company already secured 20 contracts, which it expects to deliver in the second half of the year. The division is forecasted to bring a revenue of GBP1.0 million to 2018 results.
"Nexus retains a very strong market position and the timing issue we are highlighting today is being addressed. The depth and breadth of our customer base and geographic presence coupled with our existing order book, which continues to grow, will position us for future growth," said Chief Executive Mike Morris.
"Longer term we believe the structural undersupply of housing in the UK will continue to drive demand for the Group's critical services and the Board is therefore confident for the future," Morris added.
Shares in Nexus Infrastructure were down 17% at 206.60 pence per share on Friday.
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