Nexus Infrastructure PLC Trading Update (3294V)
August 09 2022 - 2:00AM
UK Regulatory
TIDMNEXS
RNS Number : 3294V
Nexus Infrastructure PLC
09 August 2022
9 August 2022
Nexus Infrastructure plc ("Nexus" or the "Group")
Trading Update
Nexus, a leading enabler of energy transition by delivering
sustainable infrastructure , today announces an update on trading
for the current financial year ending 30 September 2022
("FY22").
eSmart Networks provides public electric vehicle charging
infrastructure, industrial electrification and renewable energy
connections. The business has recently experienced some delays in
the conversion of its order book to revenue, due to longer lead
times dictated by our 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
that was expected to be converted into revenue in Q4 2022 is now
expected to be delivered in the next financial year. The growth
profile of eSmart Networks continues to be very strong and for FY22
is expected to deliver in excess of double the revenue achieved in
FY21 of GBP9.0m. The gross margin of eSmart Networks is expected to
improve to around 24% in H2, a significant improvement on H1 and in
line with the Board's expectations. It is now expected that the
operating result for H2 will be around breakeven and an operating
loss overall for eSmart Networks in FY22.
Looking ahead, eSmart Networks continues to be successful in
winning new contracts and anticipates the order book at 30
September 2022 will have increased by around 70% compared to FY21
demonstrating the structural demand for eSmart Network's services.
The fundamental growth drivers for the business remain positive and
the increase in order book provides visibility of earnings for the
future, with the delayed deliveries of FY22 being unwound and
underpinning the results for FY23.
Both TriConnex and Tamdown continue to perform in line with the
Board's expectations for FY22, delivering both revenue and
operating profit growth.
Overall, the Board anticipates an operating profit of between
GBP3.8m and GBP4.2m for the Group for FY22 with the shortfall
compared to the Board's previous expectations due to the delays
within eSmart Networks as described above.
Mike Morris, Chief Executive of Nexus, commented:
"While the impact of delays in the delivery of the eSmart
Networks order book are frustrating, revenue growth for the
division this year is significant and we are still hugely excited
for the future of the whole business. Nexus sits at the heart of
the UK energy transition. 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."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) No. 596/2014 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018.
Enquiries:
Nexus Infrastructure Tel: 01376 559 550
plc
Michael Morris, Chief
Executive Officer
Alan Martin, Chief Financial
Officer
Numis Securities Limited Tel: 0207 260 1200
(Nominated Adviser &
Broker)
Oliver Hardy (Nomad)
Heraclis Economides
Ben Stoop
Camarco Tel: 0203 757 4992
(Financial Public Relations)
Ginny Pulbrook
Rosie Driscoll
Tom Huddart
Notes to Editors:
Nexus is enabling the energy transition by delivering
sustainable infrastructure. The Group's capabilities are:
Multi-Utilities - TriConnex, our multi-utilities business,
designs, installs and connects energy, water, fibre networks and
electric vehicle charging infrastructure on new residential
developments. The business offers end--to--end solutions with the
goal of being recognised as the UK's leading independent provider
of utility connections to new developments.
Energy Transition - eSmart Networks, our energy transition
business, provides public electric vehicle charging, industrial
electrification and renewable energy connections. The business was
created to respond to the UK's need for charging infrastructure as
the transition to electric vehicles gathers pace and has since
broadened its services to provide grid connection solutions and
renewable energy infrastructure.
Civil Engineering - Tamdown, our civil engineering business,
provides a range of civil engineering and infrastructure services
to the UK housebuilding and commercial sectors. Services include
earthworks, highways, substructures and basements and installing
sustainable drainage systems. It has an established market-leading
position having been in operation for over 40 years.
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END
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