Nexus Infrastructure (AIM:NEXS), the AIM-listed essential infrastructure group, said on Wednesday that its subsidiary Coleman Construction & Utilities had won a £2m contract from CMDP+ covering works at St Johns, Crowborough.
The 10-month contract marks Coleman's first major award under the water sector's Asset Management Period 8 (AMP8) investment cycle, which governs regulated spending by UK water companies.
The scope covers civil engineering works including new water infrastructure, access works and associated underground pipework and cable infrastructure.
Coleman has previously delivered wastewater and reservoir upgrades for CMDP+ at Lingfield, Bewl Water and Tunbridge Wells, and Nexus said the St Johns award builds on that track record and offers further evidence that AMP8 opportunities are starting to convert into contracts.
Barry Coleman, co-founder and managing director of Coleman, said securing the contract was "an important milestone" that builds on the company's long-standing relationship with CMDP+, adding that Coleman would pursue further opportunities "as AMP8 activity gathers pace".
Clare Lacey, interim chair of Nexus, said the award was "an important step forward from the early-stage activity we reported in our trading update" and an encouraging signal that project activity is now beginning to get underway.
Nexus described AMP8 activity overall as slower than initially anticipated, but said the St Johns contract signals that major project activity is now underway, reinforcing its confidence in the long-term opportunity AMP8 represents for Coleman.