Nexus Infrastructure

Website: Nexus Infrastructure
Index: AIM
EPIC: NEXS
Supersector: Construction and Materials
Sector: Construction and Materials
Subsector: Heavy Construction
Market Cap: £10.03M
Payout Frequency: Semi-Annual

Nexus Infrastructure Dividend Analysis and Summary

Dividend Summary

Cover and Cash Support

Earnings cover: not covered (FY25 EPS (26.3)p; loss after tax £2.38m).
Cash support: net cash £10.9m (no bank debt) and operating cash flow c. £4.2m comfortably exceed the c. £0.27m annual dividend.
Lease liabilities: £11.5m (interest £0.7m; cash lease outflow £2.33m), which absorb cash but are manageable relative to cash balance and order book.

Policy and Trajectory

Policy: Board continues a small, stable dividend (3.0p total) “in line with the last two years.”
Growth: No increase this year; future growth likely contingent on returning to sustained profitability and cash generation from the enlarged, more diversified group.

Operational and Financial Backdrop

Revenue +16% to £65.9m; gross margin improved to 15.6%; operating loss (pre-exceptional) narrowed to £1.1m.
Order book up 62% to £83.4m, improving revenue visibility into FY26.
Tamdown margins improved to 14.0%; Coleman averaged 31% gross margin.
Net assets: £27.3m; no bank debt; strong cash discipline and reduced central costs.

Structural Changes and Capital Allocation

M&A: Acquisition of Coleman Construction & Utilities (Oct 2024) for up to £5.4m (cash outflow £2.9m in FY25; potential contingent consideration up to £1.3m). This diversifies into higher-margin, less cyclical water/rail and is expected to ramp with AMP8 (2025–2030).
Historic capital return: Significant share cancellation in FY23; current share count stable at 9.03m.

Analyst View: Sustainability and Risks

Sustainability: The dividend is cash-covered and modest relative to £10.9m cash, but not covered by earnings. Near-term sustainability rests on continued cash discipline, order book conversion, and Coleman’s AMP8 ramp.
Growth prospects: Flat for a third year. Meaningful growth likely requires Nexus to move back to operating profit and sustain Tamdown margin gains while scaling Coleman through AMP8.
Key supports: Rising order book, improving margins, diversified sector exposure post-acquisition, and absence of bank debt.
Flags/Risks: Ongoing operating losses; timing/execution risk around housebuilding recovery and AMP8 mobilisation; sizeable lease obligations; potential cash outflow from contingent consideration; sector receivables risk (albeit overdue debts reduced); lack of committed debt facilities could constrain flexibility if trading softens.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
06/03/2025	17/04/2025	Final	2.00p	GBX
22/05/2025	27/06/2025	Interim	1.00p	GBX

Total (Annual Dividends Per Share): 3.00p

Dividend Yield = Annual Dividends Per Share (3.00p) ÷ Share Price (110.12p) = 2.72%

Ex Dividend Date	Payment Date	Type	Amount	Currency
26/03/2026	24/04/2026	Final	2.0000p	GBX
22/05/2025	27/06/2025	Interim	1.00p	GBX
06/03/2025	17/04/2025	Final	2.00p	GBX
23/05/2024	28/06/2024	Interim	1.00p	GBX
04/04/2024	07/05/2024	Final	2.00p	GBX
01/06/2023	30/06/2023	Interim	1.00p	GBX
16/03/2023	03/04/2023	Special	163.00p	GBX
16/06/2022	15/07/2022	Interim	1.00p	GBX
27/01/2022	25/02/2022	Final	1.40p	GBX
10/06/2021	09/07/2021	Interim	0.60p	GBX
20/02/2020	25/03/2020	Final	4.40p	GBX
13/06/2019	12/07/2019	Interim	2.20p	GBX
07/02/2019	05/03/2019	Final	4.40p	GBX
14/06/2018	13/07/2018	Interim	2.20p	GBX
08/02/2018	09/03/2018	Final	4.20p	GBX
17/08/2017	07/09/2017	Interim	2.10p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	1.000	4.000		GBX	5.000	-96.950
2023	1.000		163.000	GBX	164.000	16,300.000
2022	1.000			GBX	1.000	-50.000
2021	0.600	1.400		GBX	2.000	-69.690
2019	2.200	4.400		GBX	6.600	0.000
2018	2.200	4.400		GBX	6.600	4.760
2017	2.100	4.200		GBX	6.300

Number of Shares:

Payment	Paid	Amount
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