Nexus Infrastructure confident after first-half revenue growth

The AIM-traded firm said group operating profit, meanwhile, slipped to £1.1m for the six months ended 31 March, from £1.5m a year earlier.

It said its order book remained “strong”, with a 6.6% increase since the year end to £306.7m, adding that its balance sheet and cash generation also showed strength in the period.

Net assets grew by 8.5% to £32.7m by 31 March, while cash and cash equivalents totalled £23.1m at period end, down from £25.6m a year earlier, with net cash slipping to £12.5m from £13.7m.

The board said the post-period end sale-and-leaseback of the head office building at Nexus Park increased its cash and cash equivalents balance by £2.9m, and eliminated group borrowings, increasing net cash by £13.5m.

Nexus hiked its interim dividend by 66% to 1p per share, which the directors said reflected their confidence in second half performance.

“I am pleased with the excellent progress made in the first half of the year pursuing our strategy in multi-utilities, energy transition and civil engineering,” said chief executive officer Mike Morris.

“TriConnex continues to thrive, eSmart Networks is delivering growth and building its order book and Tamdown is on track with its medium term plan. Nexus has a strong balance sheet with £23m of cash, plus a growing order book.

“Combined with our sought-after services we head into the second half of the year with positive momentum.”

At 1123 BST, shares in Nexus Infrastructure were up 1.89% at 188.5p.

Reporting by Josh White at Sharecast.com.