StockMarketWire.com - Infrastructure services provider Nexus Infrastructure warned that project delays hurting its Tamdown unit were expected to weigh on its first-half results.

Revenue for the six months through March was expected to rise 12.9% to £71.0m, with Tamdown revenue rising 6.1%, the company said.

'However, the Tamdown business has seen delays and changes to customer build programmes, affecting resource planning, increasing mobilisation costs and so impacting efficiency,' Nexus said.

'Also, customer pricing pressure and higher than expected cost inflation have resulted in increased pressure on revenues and margins.'

'Management anticipate that these current trading conditions, which are being caused in part by the uncertain political backdrop, will continue in the second half.'

In the first half, the company's gross margins were around 13%. They were expected to stay around that level for the rest of the year.

'The underlying demand in the UK housing market remains strong and Nexus is well positioned within this market,' chief executive Mike Morris said.

'However, customer delays and the resultant cost pressures experienced by Tamdown in the first half are likely to continue into the second half and although management are addressing these issues, they will have a significant impact on Group profitability this year.'

'Whilst the near-term outlook for Tamdown is disappointing we are continuing to see a solid order book which gives us confidence in future growth.'

'I am pleased to report that TriConnex and eSmart are performing well and in-line with expectations.'


At 2:58pm: [LON:NEXS] Nexus Infrastructure Plc share price was -68p at 145p



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