Value creation
Nexus Infrastructure creates long-term sustainable organic growth and value for stakeholders.
Use the tabs below to find out more about how we create value
Our investment case
Enabling the energy transition by delivering sustainable infrastructure
Well defined growth strategy
Attractive and growing addressable markets
Strong balance sheet
Solid order book provides visibility of revenue
High-quality customer base and relationships
Reputation for high‑quality delivery of essential services
Government stimulus for the housebuilding market
Government stimulus for green infrastructure
Market opportunity
Housing
Market Drivers
- Housing shortage and regeneration of urban and brownfield areas • National Housing Federation has identified the need for up to 340,000 new homes in England per year up to 2031
- Government stimulus including Help to Buy, mortgage guarantee scheme, ‘Generation Rent to Generation Buy’
- Social changes driven by pandemic such as household changes and desire for more internal and external space
- Support driven by accepted importance of the housing market to the wider economy
Opportunities
- Increase in mixed tenure developments with requirement for affordable housing
- Broadened product and services demand within infrastructure and utilities capability
- Growth in residential services due to the national housing shortage
- High pace delivery with modular and off-site
Industrial and Commercial
Market Drivers
- Growth in logistics and distribution centres to enable ongoing expansion of online shopping and fulfilment
- Growing requirements for chilled food manufacturing and distribution centres
- Increase in data centres to house cloud-based storage solutions
- Supporting civil engineering and infrastructure requirements for large warehouse and similar structures
- Net Zero responses by businesses to meet Government guidance
Opportunities
- Utility connections required for facilities across growing range of sectors
- Increasing requirement and public pressure for EV charging infrastructure
- Renewable energy connections preferred and increasingly projected
- Civil engineering capability transferable for appropriate schemes
Transportation
Market Drivers
- Government’s Road to Zero strategy setting clear path for zero emission goals and phasing out of combustion engines
- Businesses with company vans and cars moving to electric vehicles
- Transportation companies such as bus and coach companies transitioning to electric vehicles
- Increasing percentage of car manufacturers in the EV market
- Electric vehicle forecourts and hubs being built in growing number of locations
Opportunities
- Transition from combustion engine to electric vehicles continues to accelerate
- Creation of low emission transport systems
- Increased requirement for large grid connections at depots, hubs and forecourts
- Studies suggest that the UK will require more than 25m electric vehicle charging points by 2050
Renewables and Electrification
Market Drivers
- Requirement for renewable energy sources and energy storage
- Government support for decarbonisation and commitment to Net Zero by 2050
- Increasing use of renewable energy to produce power and heat
- Legislative agenda: Future-proofed homes required in line with the Future Homes Standard
- Increase in smart cities and associated infrastructure
Opportunities
- Electricity is expected to increase from 20% of the energy supply to more than 75% by 2050
- Investments in renewable energy connections
- Supporting requirements for the energy transition of power and heat
- Enhanced electricity requirements embedded within future home designs
Nexus’ mission is to be recognised as the leading provider of sustainable infrastructure services in the UK, by delivering outstanding performance through a focus on delivery, customer service and diversification.
Respond and Protect
2020
2020
Rapid and decisive actions taken by leadership
Restore
2021
2021
Position the business for a successful recovery
Drive long-term value
2022+
2022+
Compelling growth opportunities
Our strategic priorities
1
Expand and further optimise service offering
- Sector diversification
- Geographic expansion
- Services optimised for energy transition
- Track record of identifying next opportunity
Market share gains
2
Benefiting from fast-growing market segments
- Net Zero targets changing the game
- Industrial electrification is the next big opportunity
- EV demand growing fast
- Every sector impacted
Continued Growth
3
Focus shareholder value in energy transition services
- Focus on underappreciated targets
- Significant arbitrage potential
- Disciplined approach on criteria and valuation
- Explore routes to enhance shareholder value
Scale and earnings accretion
Our business model
Resources and relationships
The resources and relationships we need to run our business:
Our people
Highly skilled, motivated and loyal workforce.
Experienced senior management team and Board.
Markets
Attractive and growing addressable markets supported in coming years by Government housing and energy transition strategies.
Financials
Attractive cash flow characteristics with a high cash balance, resulting in a strong balance sheet.
How we do it
1
Business development
Early customer engagement
Solution innovation
Design and estimating
Value engineering
2
Planning
Programme and logistics
Procurement and resources
Legal compliance
Project collaboration
3
Execution
Performance monitoring
Flexible delivery
Team approach
Safe working
Stakeholder value
Creating value for all our stakeholders:
Our Shareholders
Positive fundamental market growth drivers to enable a progressive dividend policy.
Our Customers
Relationships, partnerships and effective engagement with our customers to understand their individual challenges and needs.
Our People
Group purpose and values with a strong focus on staff development and learning across the Group as well as health, safety and wellbeing.
Our Communities
Financial support to local charities, staff volunteering days, supporting educational organisations and pupils, and more.
KPIs
The Board uses key performance indicators to measure its progress against the Group’s strategic objectives.
KPI
Description
Performance
- Revenue and revenue growth track our performance against our strategic aim to grow the business
| 2021: | 137.0 |
| 2020: | 125.7 |
| 2019: | 155.1 |
- Tracking adjusted operating profit ensures that the focus remains on delivering profitable outcomes on our contracts
| 2021: | 2.9 |
| 2020: | -1.9 |
| 2019: | 6.0 |
- Tracking the after-tax earnings relative to the average number of shares in issue provides a monitor on shareholder value
| 2021: | 6.6 |
| 2020: | -5.9 |
| 2019: | 11.0 |
- Tracking the total dividend per share declared for each financial year provides a monitor on the return achieved for shareholders
| 2021: | 2.0 |
| 2020: | 0.0 |
| 2019: | 6.6 |
- Tracking the cash balance monitors the conversion of profits into cash, ensuring that cash is available for reinvestment or distribution to shareholders
| 2021: | 29.5 |
| 2020: | 32.1 |
| 2019: | 27.4 |
- The tracking of the order book, being the amount of secured construction work and utility asset value yet to be recorded as revenue provides visibility on expected future revenue against the strategic aim to grow the business
| 2021: | 287.8 |
| 2020: | 282.0 |
| 2019: | 338.9 |
- The tracking of the Group’s net assets monitors the Group’s financial strength and stability
| 2021: | 32.1 |
| 2020: | 28.8 |
| 2019: | 23.3 |
- Health and safety is of paramount importance as the Group’s businesses work in sectors which carry significant health and safety risks
| 2021: | 433 |
| 2020: | 162 |
| 2019: | 231 |
* Adjusted operating profit is operating profit excluding the impact of exceptional items.