Nexus Infrastructure, a U.K. infrastructure group, recently announced that its underlying revenue and operating loss for the fiscal year 2023 will be worse than initially expected.
Revenue and Operating Loss
For the year ended September 30, Nexus Infrastructure anticipates its underlying revenue to be approximately £85 million ($102.7 million). Additionally, the company predicts that its operating loss will fall within the range of £6 million to £7 million.
The company attributed these results to several key factors. Firstly, client Ilke Homes appointing an administrator had a significant impact on Nexus Infrastructure’s performance. Furthermore, the lack of new order activity, stemming from challenging market conditions, also played a role in the company’s financial situation. Finally, upfront costs related to rightsizing its resources and a prudent approach to customer debt also contributed to the anticipated loss.
To address these challenges, Nexus Infrastructure is implementing several mitigating actions. This includes an £800,000 reduction in overhead costs and a reduction in headcount of site-based employees by approximately 25%, among other measures.
Order Book Decline
As of September 30, Nexus Infrastructure’s order book decreased to £46 million. This decline is indicative of both the lack of new order intake and extended procurement cycles throughout the housebuilding industry. However, the company remains optimistic about the future, stating that they anticipate a significant increase in the order book based on ongoing conversations with customers.
At 0742 GMT, shares were down 5 pence, or 4.6%, at 105 pence.
Acknowledgement: Anthony O. Goriainoff