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(Alliance News) - Nexus Infrastructure PLC on Friday noted that customers remain cautious on awarding new contracts, but hailed a steadily growing order book.
Shares in the Braintree, England-based civil engineering infrastructure services provider rose 6.3% to 74.40 pence each on Friday morning in London.
Nexus Infrastructure expects revenue of around GBP26 million for the half year ended March 31, about 49% lower than GBP51.0 million a year ago and in line with its own expectations.
Citing high inflation and interest rates, the company in March said that market conditions had significantly deteriorated in the financial year ended September 30 due to major developers making cuts to their budgets and postponed new project activities. "Decisive actions were taken to right-size the business, in order to protect and improve margins and to ensure we are well positioned to return to a growth trajectory when the housebuilding market rebounds," Nexus Infrastructure said last month.
Chief Executive Charles Sweeney on Friday noted that "customers remain cautious on awarding new contracts."
More positively, the company's order book is predicted to have risen 26% to GBP72 million as at March 31 from GBP57 million on January 31.
It would represent a 57% surge from GBP46 million at September 30.
Further, the company hailed its "strong balance sheet", noting cash and cash equivalents of GBP9.3 million, but added that figure is "marginally lower than the board's expectations".
CEO Sweeney said: "We continue to have good visibility of new contracts with our longstanding customers on significant multi-phase developments. Although we are encouraged by the initial improvements in the market, we will maintain our focus on operating discipline and the management of costs."
Its half year results will be announced on May 16.
By Tom Budszus, Alliance News slot editor
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