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(Sharecast News) - Nexus Infrastructure reported a 19% rise in group revenue to 30.6m for the six months ended 31 March on Thursday, supported by growth in its core Tamdown division and the initial contribution from newly acquired Coleman Construction & Utilities.
Tamdown, which serves the housebuilding sector, generated 27.8m in revenue despite sector-wide headwinds, while Coleman added 2.8m over five months since acquisition.
The AIM-traded group trimmed its operating loss to 1.1m from 1.3m a year earlier, excluding 0.5m of exceptional costs.
Tamdown's order book expanded to 80.8m, with a further 16m of contracts secured in April.
Gross margin in Tamdown improved to 13.6%, reflecting tighter cost control and operational efficiencies.
Net assets stood at 28.1m and cash at 9.6m.
An interim dividend of 1p per share would be paid on 27 June.
Nexus said Coleman's integration was progressing well, adding that it was preparing for new infrastructure projects tied to the AMP8 water sector and CP7 rail investment cycles.
The group said it remained focused on cost discipline and pursuing further opportunities to diversify across critical infrastructure sectors, while noting early signs of recovery in UK housebuilding.
"It has been an encouraging first half for Nexus Infrastructure, during which we have delivered notable progress against our three strategic objectives," said chief executive officer Charles Sweeney.
"Tamdown has experienced growth in both revenue and order book, we delivered our first step in diversification through the acquisition of Coleman Construction & Utilities, and our focus on financial delivery has once again resulted in an improvement in Tamdown's gross margin, despite the challenging market backdrop across the housebuilding sector."
Sweeney said new work generation in the second half had started well, with additional new contracts secured post the period end, further increasing our order book.
"The group continues to be well placed to benefit from the recovery of the housebuilding sector.
"In addition, we can now look forward to the opportunities which will arise from the significant increases in water sector budgeted expenditure included in the AMP8 programme of works, beginning later this year."
At 1100 BST, shares in Nexus Infrastructure were up 4.76% at 165p.
Reporting by Josh White for Sharecast.com.