(Sharecast News) - Civil engineering group Nexus Infrastructure said on Tuesday that it was currently navigating "challenging market conditions" and now sees its full-year performance coming in lower than previous expectations.
Nexus expects to report full-year revenues of approximately £85.0m and an operating loss in the range of £6.0m-£7.0m - lower than the board's previous projections as a result of ilke Homes going into administration, a lack of new order activity due to difficult market-wide conditions, up-front costs in relation to rightsizing the group's resources and " prudent approach" on aged customer debt, where a significant portion has been written off.
However, the AIM-listed group remains confident that the housebuilding sector will recover, not only due to the chronic undersupply of housing but also because of engagement with its longstanding customers.
Chief executive Charles Sweeney said: "Whilst we face challenging market conditions, we have taken decisive action to respond and rightsize the business. The strength and quality of our offering and strong financial footing mean we are well-placed to return to a growth trajectory when the housebuilding market improves."
As of 1040 BST, Nexus shares had sunk 9.09% to 100.0p.
Reporting by Iain Gilbert at Sharecast.com
Nexus Infrastr. (NEXS)