Nexus Infrastructure rebounds from pandemic and returns to profit
Nexus Infrastructure (Nexus) has rebounded from challenging pandemic conditions with revenues rising from £125.7m to £137m in its newly published full-year results.
The sustainable infrastructure group has returned to black after being £2.8m in the red last year, reporting a profit of £3.8m.
Its order book has also increased from £282m to £287.8m.
The company’s multi-utilities business – TriConnex – which includes gas, electricity, water and fibre networks, alongside electric vehicle charging infrastructure, has performed particularly well with revenue rising 25 per cent to £50.7m and an operating profit of £5.3m.
The sector has surged with soaring demand and energy consumption.
The performance of its energy transition and civil engineering divisions was more mixed.
Revenues in its energy transition business – eSmart Networks – which includes smart energy and electric vehicle charging, have soared from £2.2m to £9m, but the sector only reported a £0.2m profit.
The sector is set to benefit significantly from the shift towards green energy solutions including renewable energy and electric vehicle charging.
The company’s civil engineering arm – Tamdown- which targets housebuilding and commercial developments reported a loss of £0.6m, and a decline in revenue from £85.8m to £78m.
Housebuilding remaims beset by pandemic difficutlies from reduced demand to ultra-high energy costs.
Nexus still has some way to go to recover to its last set of results unaffected by the Covid-19 pandemic, with the company reporting £155.1m in revenues in 2019 and a gross profit of £27.9m.
However, the results suggest it can continue its recovery into 2022, with the group holding a healthy net cash position of £15.5m, and set to restore the dividend to shareholders.
Nexus’ chief executive Mike Morris said: “The group has an important role to play in delivering sustainable infrastructure for the UK. We have achieved a strong recovery from Covid-19, delivering profitable growth, reinstating the dividend whilst making excellent progress on strategy.”
The company is mulling over the possibility of separately listing eSmart Networks or boosting its capabilities with third party investment.
Shares in the FTSE AIM listed company are up 1.29 per cent on Friday morning following the results, trading at 235.00.