9th Aug 2022 10:36
(Alliance News) - Nexus Infrastructure PLC shares were down on Tuesday, as it lowered its full year guidance following delays at its eSmart Networks division.
Shares in the Essex, England-based infrastructure services provider were down 15% to 141.50 pence each in London on Tuesday morning.
Nexus' eSmart Networks, which focuses on electric vehicle charging infrastructure, has recently experienced some delays in the conversion of its order book to revenue, it said. The company explained that this is due to longer lead times dictated by its customers and longer lead times relating to the manufacture and delivery of specialised equipment utilised on projects.
As a result of these delays, a "portion" of the order book, which was expected to be converted into revenue during the fourth quarter of its financial year to September 30, will now be delivered in financial year 2023. The company now expects operating profit for the second half of its financial year to breakeven, with an overall operating loss for eSmart Networks in financial year 2022.
However, Nexus also said the eSmart business is expected to deliver over double the revenue achieved in financial year 2021 of GBP9.0 million.
Looking ahead, Nexus now expects overall operating profit between GBP3.8 million and GBP4.2 million, with the shortfall. For financial year 2021, the company reported revenue of GB137.0 million and pretax profit of GBP3.8 million.
It also expects eSmart's order book at September 30 to be up 70%, from GBP13.5 million year-on-year. Nexus said that this provides visibility of earnings for the future, with the delayed deliveries being unwound and underpinning the results for financial year 2023.
Both TriConnex and Tamdown continue to perform in line with the board's expectations for the current financial year, delivering both revenue and operating profit growth, the company added.
Chief Executive Officer Mike Morris said: "We are confident in the ability of eSmart Networks to continue to win new contracts and convert its order book as the green infrastructure revolution continues, Tamdown's recovery continues in-line with plan, TriConnex continues to grow, and the Group continues to see high levels of demand for its services from customers that value its expertise."
By Sophie Rose; [email protected]
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