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
Well defined growth strategy
Attractive and growing addressable markets
Strong balance sheet
Solid order book provides visibility of revenue
Established, high-quality customer base and relationships
Reputation for high‑quality delivery of essential services
Government stimulus for the housebuilding market
Leading the market in delivery of smart energy solutions
Government stimulus for green infrastructure
Market opportunity
Residential
Market Drivers
- Housing shortages 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, Stamp duty holiday, ‘Generation Rent to Generation Buy’
- Social changes driven by pandemic – pent-up demand and desire for more space following pandemic
- Support driven by accepted importance of the housing market to the wider economy
Opportunities
- Experience and relationships built over 40 years delivering schemes for Housebuilders
- Increase in mixed tenure developments with driver for affordable housing
- Broadened product and services demand within infrastructure and utilities capability
- Demand for residential services due to the national housing shortage and post Covid-19 pent-up demand
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 planned by businesses to meet new Government guidance
Opportunities
- Utility connections required for facilities across growing range of sectors
- Increasing requirement for EV charging infrastructure at range of locations
- Renewable energy connections preferred and increasingly projected
- Civil engineering capability transferable for appropriate schemes
Green Infrastructure
Market Drivers
- Requirement for renewable energy sources and energy storage
- Increase in smart cities and green transport solutions
- Government support for decarbonisation with Road to Zero strategy setting clear path for zero emission goals and recently announced accelerated phasing out of combustion engines
- Increasing use of renewable energy to produce power and heat
- Future proofed homes required in line with Future Homes Standard
Opportunities
- Investments in renewable energy connections
- Transition from combustion engine to electric vehicles picking up pace
- Creation of low emission transport systems
- Recent studies suggest that the UK will require more than 25m electric vehicle charging points by 2050
Nexus’ mission is to be recognised as the leading provider of essential 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
Grow within current core markets
- Clear focus on delivery
- Grow customer relationships
- Expand customer base
- Utilise strong balance sheet
Market share gains
2
Expansion
- Sector diversification
- Service expansion
- Geographic growth
Growth
3
Capitalise on acquisition opportunities
- Exploit challenging market for competitors
- Stringent acquisition criteria
- Disciplined approach
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 environmental 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
Delivering value for all our stakeholders:
Customers
Relationships, partnerships and effective engagement with our customers to understand their individual challenges and needs.
Shareholders
Positive fundamental market growth drivers to enable a progressive dividend policy.
Employees
Group purpose and values with a strong focus on staff development and learning across the Group as well as health, safety and wellbeing.
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
| 2020: | 125.7 |
| 2019: | 155.1 |
| 2018: | 134.9 |
- Tracking adjusted operating profit ensures that the focus remains on delivering profitable outcomes on our contracts
| 2020: | -1.9 |
| 2019: | 6.0 |
| 2018: | 9.4 |
- Tracking the after-tax earnings relative to the average number of shares in issue provides a monitor on shareholder value
| 2020: | -5.9 |
| 2019: | 11.0 |
| 2018: | 19.1 |
- Tracking the total dividend per share declared for each financial year provides a monitor on the return achieved for shareholders
| 2020: | 0.0 |
| 2019: | 6.6 |
| 2018: | 6.6 |
- Tracking the cash balance monitors the conversion of profits into cash, ensuring that cash is available for reinvestment or distribution to shareholders
| 2020: | 32.1 |
| 2019: | 27.4 |
| 2018: | 26.4 |
- 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
| 2020: | 282.0 |
| 2019: | 338.9 |
| 2018: | 289.7 |
- The tracking of the Group’s net assets monitors the Group’s financial strength and stability
| 2020: | 28.8 |
| 2019: | 23.3 |
| 2018: | 21.8 |
- Health and safety is of paramount importance as the Group’s businesses work in sectors which carry significant health and safety risks
| 2020: | 162 |
| 2019: | 231 |
| 2018: | 258 |
* Adjusted operating profit is operating profit excluding the impact of exceptional items.