Nexus on track to meet FY expectations as divisional revenues increase

Infrastructure services provider Nexus said on Wednesday that full-year profits should be in line with market expectations as the underlying demand in the UK housing market looked set to remain strong.

In an update ahead of its results for the year to 30 September, Nexus said divisional revenues had increased year-on-year, with Tamdown looking set to achieve high single-digit percentage revenue growth, while TriConnex was on track to deliver strong revenue growth following an overall increase in the number of projects secured and the acceleration of certain other projects.

The AIM-listed group added that eSmart Networks continued to successfully scale up.

Nexus said it was encouraged by the level of growth in each of the group's order books - with Tamdown's order book up 6% to £151.6m, TriConnex up 26% to £184.8m and eSmart Networks up £1.7m to £2.5m.

The overall group order book ended the year at £338.9m, up 17% year-on-year.

Nexus said it was in a strong position to deliver consistent organic growth moving forward, aided by the structural undersupply in the UK housebuilding market and government stimulus for the sector.

Chief executive Mike Morris said: "The underlying demand in the UK housing market remains strong and Nexus is well-positioned within the structurally undersupplied and government-backed housing market.

"The continued growth in our order book provides us with strong visibility of future earnings and gives us confidence in the future."

As of 0945 BST, Nexus shares had climbed 6.02% to 141p.