Nexus Infrastructure PLC

22 October 2021

Nexus Infrastructure plc

("Nexus" or the "Company" or the "Group") 

Trading Update and Notice of Results

Results underpinned by strong balance sheet and order book, leaving the business well placed for growth in FY22

Nexus Infrastructure plc, a leading provider of essential infrastructure services, utilities connections, electrical vehicle charging and smart energy infrastructure, announces a trading update ahead of its results for the financial year ended 30 September 2021, which will be announced on 10 December 2021.

Nexus expects to deliver Group revenues of £138.0m for the year ended 30 September 2021 (2020: £125.7m).  The Group's strong order book has been maintained, with the total standing at £286.4m (2020: £282.0m).

The Board expects the Group's operating profit for the full year ended 30 September 2021 to be in line its expectations.

TriConnex, our multi-utility business, has performed very well in the year delivering both revenue and profit growth. Revenue for the year has exceeded £50m for the first time, a substantial growth of 29% year on year, whilst continuing to deliver a gross margin of 30%. The business continues to thrive, with the order book increasing during the year to £189.0m (2020: £185.4m).

eSmart Networks, our smart energy business, gained strong traction during the year with revenue increasing by a significant 370% year on year. Revenue for the year will exceed £10m (2020: £2.2m) and the business will record a small operating profit for the full year (2020: loss £0.8m). The order book has increased substantially during the year increasing by £8.3m to £12.1m, a 218% increase over the year (2020: £3.8m). The business is establishing an impressive client base in the electric vehicle charging, industrial electrification and renewable infrastructure sectors with visibility over a pipeline worth more than £400m.

Tamdown, our civil engineering business, saw revenue decrease in the year to £78m (2020: £85.8m) following low levels of contract awards in the COVID impacted 2020 and significant inflationary price pressures in its cost base have materialised in Q4. The Board is pleased to have successfully completed the sale of Tamdown's former office in the period recognising a profit on disposal and so Tamdown was profitable for the year. Tamdown has been successful in winning contracts in 2021, but due to the inflationary environment is being disciplined on project selection and as a result the order book has reduced to £85.3m (2020: £92.8m).

The Board is pleased to report that the Group's strong balance sheet has been maintained, with a high cash and cash equivalent balance of £29.5m (2020: £32.1m) and net cash balance (after bank borrowings and lease liabilities) of £15.3m (2020: £19.2m).

The Group is in a strong position to deliver organic growth, supported by the structural undersupply in the UK housebuilding market and Government stimulus, along with the considerable opportunities within the smart energy sectors. The Group's strong balance sheet and order book leave Nexus well positioned for future growth, particularly within TriConnex and eSmart Networks where market fundamentals are strong, trading momentum is encouraging and the Government is actively supporting investment into green technologies and infrastructure.

Commenting on the Group's performance, Mike Morris, Chief Executive Officer, said:

"2021 has been an important year for Nexus. With a return to profitability and a strong balance sheet, we were pleased to reinstate the payment of dividends in 2021. The business has continued to expand, with the completion of our new head office Nexus Park and the opening of an office in Belfast.

TriConnex and eSmart Networks have performed extremely well in the year, growing both revenue and profitability. Whilst Tamdown has been challenged by significant inflationary pressures in the latter part of the year, it has performed well operationally. We have been disciplined across the business to maintain selectivity on the projects we take on, providing visibility of earnings and leaving us well placed for the future.

Looking forward, we expect profits to grow in the year ahead and the business is in a strong position to meet the anticipated increased level of activity driven by a fundamental undersupply of housing and infrastructure in the UK. This is coupled with the growing opportunities to support the UK's energy transition."

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About Nexus

Nexus is a leading provider of essential infrastructure services in the UK housebuilding and commercial sectors. The Group comprises: TriConnex which designs, installs and connects multi utility networks to properties on new residential and commercial developments; eSmart Networks which focuses on electric vehicle charging infrastructure smart grid solutions and renewable infrastructure; and Tamdown, a provider of civil engineering, infrastructure and high-rise construction services.

TriConnex was established in 2011 to take advantage of deregulation in the utilities market with the goal of being recognised as the UK's leading independent provider of multi utility connections to new developments. eSmart Networks was set up in 2018 to meet the UK's growing need for charging infrastructure as the transition from internal combustion engine to electric vehicles gathers pace and has since diversified into smart grid solutions and renewable infrastructure. Tamdown has a well-established market position having been in operation for over 40 years and counts amongst its customers the majority of the top ten largest UK housebuilders.