FY25 in focus: revenue up 16%, order book up 62%, losses narrowing
Nexus Infrastructure has posted a solid set of FY25 numbers given the backdrop of a slow UK housing market. Group revenue rose 16% to £65.9m, gross margin improved to 15.6% and the operating loss before exceptional items narrowed to £1.1m from £1.9m. Most importantly for future visibility, the order book jumped 61.6% to £83.4m.
The Board is recommending a final dividend of 2.0p per share, taking the total for the year to 3.0p, subject to approval. Cash and cash equivalents stood at £10.9m at year end, and the Group has no bank debt facilities, though it does carry £11.5m of lease liabilities.
Key FY25 numbers that matter
| Metric | FY25 | FY24 |
|---|---|---|
| Revenue | £65.9m | £56.7m |
| Gross margin | 15.6% | 13.5% |
| Operating loss (pre-exceptionals) | £1.1m | £1.9m |
| Order book | £83.4m | £51.6m |
| Cash and cash equivalents | £10.9m | £12.8m |
| Net assets | £27.3m | £30.0m |
| EPS | (26.3)p | (30.6)p |
| Total dividend | 3.0p | 3.0p |
What drove the improvement?
Tamdown: resilient despite a flat housing market
Tamdown, which serves UK housebuilders, delivered revenue of £60.0m (FY24: £56.7m) and pushed gross margin up again to 14.0% (FY24: 13.5%). That operational discipline nudged Tamdown back into the black with a £0.2m operating profit (FY24: £(0.4)m). New work awards accelerated to £88.8m (FY24: £55.5m), driving the Group’s order book to £83.4m at year end. That is a strong platform if the long-awaited upturn in housing activity materialises.
Coleman: higher-margin diversification into water and rail
The October 2024 acquisition of Coleman Construction & Utilities has been integrated smoothly and did what it said on the tin: diversify into higher-margin, less cyclical infrastructure. Coleman contributed £5.9m of revenue with average gross margins of 31% and an operating profit of £0.2m (4%). In water, AMP8 – Ofwat’s five-year investment period for 2025-2030 – is now starting, with activity expected to ramp progressively through FY26. Rail work under CP7 provided around 12% of Coleman’s FY25 revenue.
Margins, costs and cash: are Nexus turning the corner?
Group gross profit rose to £10.3m (FY24: £7.7m), helped by both the margin improvements at Tamdown and Coleman’s higher-margin mix. Central costs were trimmed by 21% to £1.47m (net of operating lease income and excluding Coleman acquisition costs). That focus on overheads is a clear positive.
Cash and cash equivalents were £10.9m at year end, down from £12.8m after funding the Coleman deal, but cash generation improved – £4.4m was generated from operations (FY24: £0.5m). Trade receivables reduced to £17.7m (FY24: £20.5m) and overdue receivables fell sharply to £4.7m (FY24: £7.8m), which speaks to tighter working capital control. The Group has no bank debt; lease liabilities total £11.5m.
One point to note: FY24 benefited from a one-off £1.8m claim against a supplier, which did not repeat in FY25. Despite that headwind, losses narrowed, which is encouraging.
Order book strength and outlook into FY26
The enlarged Group entered FY26 with momentum. Tamdown began the year with an £83.4m order book and has already secured a further £18m post year end. Management describe the year as seasonally weighted to H2, which is typical for site-based work.
For Coleman, the real growth engine should be AMP8. Ofwat’s PR24 final determination points to £104bn sector investment in 2025-2030, a 70% step-up on AMP7. Nexus expects Coleman’s activity levels to increase progressively through FY26 as programmes mobilise, with the potential for water and rail to become a more meaningful slice of Group income.
Dividend maintained: what it signals
The Board is recommending a final dividend of 2.0p per share, payable on 24 April 2026 to shareholders on the register at 27 March 2026 (ex-dividend date 26 March 2026). Holding the annual dividend at 3.0p despite a statutory loss is a statement of confidence in cash generation and the order book. It also reflects the strong balance sheet – net assets of £27.3m and cash of £10.9m – though investors should remember lease liabilities of £11.5m sit alongside that.
Strategy check: three levers working together
- Grow with customers – evidenced by Tamdown’s £88.8m of new awards and improved gross margin of 14.0%.
- Expand the market – Coleman adds exposure to water and rail with FY25 gross margins of 31%.
- Focus on financial delivery – central costs cut 21% to £1.47m and operating losses reduced to £1.1m (pre-exceptionals).
Jargon buster
- Order book – the value of secured work yet to be delivered and recognised as revenue.
- Gross margin – revenue minus direct costs of delivery, shown as a percentage of revenue.
- Exceptional items – material, unusual costs not indicative of underlying trading. FY25 included £0.8m primarily related to the Coleman acquisition.
- AMP8 – the water sector’s Asset Management Period running 2025-2030, setting investment plans for water companies.
Risks and what to watch in FY26
- Housing recovery timing – management expects improvement, but the pace is uncertain despite policy support and falling mortgage rate expectations.
- AMP8 mobilisation – the ramp-up is key for Coleman; any delay would push revenue to later periods.
- Execution and margin discipline – Tamdown’s margin has recovered from 5.8% in FY23 to 14.0%; keeping it there while activity scales is crucial.
- Working capital – good progress, with overdue receivables down to £4.7m; sustained discipline will matter as volumes rise.
- Cash vs leases – strong cash position and no bank debt, but lease liabilities of £11.5m remain a fixed call on cash flow.
My take: steady rebuild with optionality from water
This is a credible year from Nexus. The company grew revenue, lifted margins and brought losses down in a year when many housebuilding supply-chain players were treading water. The order book and post-period wins suggest that customer confidence is returning to Tamdown, while Coleman provides exposure to a multi-year water investment cycle with structurally higher margins.
It is not job done: the Group still reported a statutory loss of £2.4m, EPS was a loss of 26.3p, net assets dipped to £27.3m and cash eased to £10.9m after the acquisition. But the direction of travel is positive. If AMP8 ramps as planned and housing sentiment continues to improve, the path back to profitability looks increasingly achievable.
Bottom line: a stronger platform, a fatter order book and a maintained dividend. For patient investors, the FY25 print reads like the mid-point of a turnaround – with the water sector providing the kicker.
