REG - Nexus Infrastructure - Trading Update

Nexus InfrastructureAnnouncement

09/08/2022 07:00

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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 £9.0m. 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 £3.8m and
£4.2m 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 plc                                  Tel: 01376 559 550

 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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