Infrastructure services group Nexus said on Tuesday that while the Covid-19 pandemic continued to cause “general economic uncertainty”, fundamental market growth drivers remained “positive”.
Nexus said trading conditions within its TriConnex and eSmart divisions remained “positive”, with both businesses carrying “significant momentum” and performing ahead of the company’s base-case scenario due to “significant growth” in new business.
However, the AIM-listed group did note that the pandemic and resulting market uncertainty had continued to “provide challenges” for its Tamdown subsidiary.
“Despite on-site activity and new business wins picking up since the year-end, trading is more in-line with the downside scenario as set out at the time of last year’s placing,” said Nexus chairman Geoff French at the firm’s annual general meeting.
However, French added that Nexus was confident of a recovery in Tamdown’s revenues and margins if industry activity returns to more normalised levels.
“With a strong balance sheet and order book of £279.0m, Nexus remains on-track to implement its recovery and growth strategy with a return to pre-Covid levels of activity in FY22,” concluded French.
As of 1140 GMT, Nexus shares were down 7.91% at 150.10p.
