10th Dec 2019 10:59
(Alliance News) - Nexus Infrastructure PLC on Tuesday reported record full-year revenue though profit fell on rising costs and its largest unit seeing limited growth on lower margins.
In the year ended September 30, revenue was up 15% year-on-year to GBP155.1 million, a record for the company, from GBP134.9 million.
Pretax profit fell by 38% to GBP5.7 million from GBP9.2 million, with administrative costs rising 20% to GBP21.9 million from GBP18.2 million.
Nexus held its dividend at 6.6 pence per share.
Driven by "continuing demand", Nexus reported revenue growth in all three of its operating units.
In the Tamdown civil engineering services segment, revenue was up by 9.5% to GBP112.2 million.
Nexus said: "Revenue growth in Tamdown was limited to 9.5% by industry-driven delays and changes to customer build programmes, which affected resource planning, increased mobilisation costs and impacted efficiency on site. In addition, customer pricing pressure, along with cost inflation, have resulted in increased pressure on revenues and margin."
In TriConnex, which works with the UK's utility services providers, revenue rose by 30% to GBP41.8 million and revenue more than doubled to GBP2.1 million in eSmart Networks.
The eSmart Networks division provides electric car charging infrastructure. It was established in 2017 to respond to increasing demand for electric vehicle services, as the shift from internal combustion engine vehicles continues.
Chief Executive Mike Morris said: "We believe that the structural demand for housing in the UK, the low interest rate environment and Government-supported incentives in the sector from all major political parties, all play well to Nexus' strengths as a trusted supplier."
Nexus shares were 6.0% lower at 160.68 pence each in London on Tuesday morning.
By Eric Cunha; [email protected]
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