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Nexus Infrastructure forecasts annual loss; albeit smaller than first feared
StockMarketWire.com
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Infrastructure services group Nexus Infrastructure said it expected to post a full-year loss, though at an improved level compared to its expectations in June.
'As expected, trading in the second half of the year has been severely impacted by the Covid-19 pandemic,' the company said in an update for the year through September.
'The majority of sites were reopened by July and the recovery in activity levels since then has been encouraging, but significantly lower than the first half of the year.'
Nexus Infrastructure said its order booked had shrunk 17% year-on-year to £282.0 million amid reduced activity levels, pricing pressures and customers taking a more cautious approach to starting new sites.
The company said its Tamdown division was experiencing some margin pressure and its cost base had been reduced, with a number of redundancies for office and site-based staff.
TriConnex's performance, meanwhile, had been resilient and in-line with expectations. 'This year has clearly been challenging across the whole of the industry and we have taken the necessary mitigating actions to protect the business,' chief executive Mike Morris said.
'We have an established reputation for delivery amongst our customers, we have maintained our strong balance sheet with the support of our shareholders and we have an order book which provides us with visibility of future earnings.'
'Looking forward, we expect to return to profitability next year.'
'There still remains a fundamental shortage of housing and infrastructure in the UK and we have positioned ourselves well in terms of our established relationships, initiatives through our eSmart Networks and TriConnex businesses, and are well positioned to address the anticipated increased level of activity in the year ahead.'
Story provided by StockMarketWire.com
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