Property & Construction Daily

The Property & Construction Daily provides a sector-specific comment from leading analyst Alastair Stewart. His daily perspective provides a round-up of market statements, news, economics and views from the property and construction sectors.

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April 19, 2024

NEXS | New – Labour outlines housebuilding plans | Fortnight ahead

Company news

Nexus Infrastructure (NEXS, 70p, £6m mkt cap)

Provider of civil engineering infrastructure services to UK housebuilders through its operational business, Tamdown (having sold its TriConnex and eSmart Services infrastructure and utilities services businesses). HY (Mar) trading update.

Guidance: “The group expects to report revenue of £26m, in line with the Board’s expectations and reports a further improvement in the order book to £72m from £57m at 31 January and £46m at the end of FY23. Whilst the ongoing challenging market conditions persist, it is encouraging to have secured new project phases of significant multi-phase contracts with several longstanding customers. There are early signs of some improvements in the market. The group retains a strong balance sheet with cash and cash equivalents of £9.3m albeit this is marginally lower than the Board’s expectations. Although we are encouraged by the initial improvements in the market, we will maintain our focus on operating discipline and the management of costs”. HY results, 16 May.

In other news …

Politics. Labour has set out plans for building on the green belt to boost housing supply while improving ‘green spaces’, BBC. Councils will be required to prioritise building on brownfield sites and poor-quality areas in the green belt, which it has dubbed ‘grey belt’. The party has previously pledged to override planning rules and local MPs to build 1.5 million homes – aligning with the Conservatives’ house building target. Labour Leader Sir Keir Starmer said his party was committed to a “brownfield-first” approach but would loosen planning laws and create a new class of “grey belt” land for low-quality green belt areas, including “poor-quality scrubland, mothballed on the outskirts of town”, citing a disused petrol station in Tottenham currently designated as green belt. At least 50% of housing development on these sites must be considered affordable. The party will also rule out building on “genuine nature spots”, requiring developers to include improvements to existing green spaces in their plans.

Fortnight ahead

19 Apr 24 Fortnight ahead
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