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9 Aug 2022 07:00
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 Michael Morris, Chief Executive Officer Alan Martin, Chief Financial Officer
| Tel: 01376 559 550 |
Numis Securities Limited (Nominated Adviser & Broker) Oliver Hardy (Nomad) Heraclis Economides Ben Stoop
| Tel: 0207 260 1200 |
Camarco (Financial Public Relations) Ginny Pulbrook Rosie Driscoll Tom Huddart
| Tel: 0203 757 4992 |
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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