Nexus Infrastructure profits expand but revenue remains flat

Nexus Infrastructure reported higher full-year profits but a lack of revenue growth, as the infrastructure, utilities and electric vehicle services company settled in to life as a listed company but was hit by client delays.

For the year ended 30 September, profit before tax came in at £9.2m, up 25% from the year before, though revenue remained steady at £135m. The previous year the company's costs were inflated by £1.7m of one-offs relating to its AIM flotation.

Nexus said that revenue growth for its Tamdown and TriConnex divisions was hampered by planning delays with clients either delaying the award of contracts or delaying commencement of works on site.

At year-end the company had cash and cash equivalents of £26.4m, down from £27.1m at the same point last year, and proposed a final dividend of 4.4p per share, taking the total dividend up from 6.3p to 6.6p.

Mike Morris, chief executive of Nexus, said there had also been "continued good strategic progress" and a 43% increase to the order book over the year to £289.7m as the company won business from new customers, saw the average contract price increase and deferred the commencement of works on some contracts.

"Looking ahead, whilst there is continued general uncertainty posed by the forthcoming exit from the EU, the fundamental market growth drivers for our business are positive," said Morris, adding that the strong order book coupled with solid balance sheet left the company "well positioned to deliver further growth".

Nexus’ shares were unchanged at 181.00p at 0908 GMT.