Nexion 'disappointed' in share price amid growth

Managed services provider Nexion told its shareholders that its current share price is not a reflection of its performance, blaming global market volatility.

In a company update posted on the ASX, Nexion said it “continues to deliver strong revenue growth” from its core customer base and new revenue from initiatives in its satellite communications sector.

“It’s disappointing to see Nexion’s share price caught up in the global technology market sector turmoil because the share price doesn’t reflect the level of activity and progress being made on organic growth and growth by acquisition,” Nexion group chief executive Paul Glass said.

“Nexion is growing rapidly in a market that is somewhat insulated from significant volatility from higher interest rates and inflation and so we continue to press-on with our plans to build a global hybrid cloud network.”

The company highlighted its efforts in the low earth orbit (LEO) satellite space, revealing it now has 150 ‘whole of satellite’ customer sites, up from 130 in Q3 of FY2022, which also increased monthly recurring revenue in the sector alone of $35,000 and an initial total contracted value of $500,000 over 12 months.

Hybrid cloud has also been a boon for the company, securing $645,000 worth of project work contracts across all its solutions, including extended and expanded contract wins with architectural firm Hames Sharley and resources giant Santos Limited. The contracts covered hybrid cloud, SD-WAN and network security.

Nexion added that additional customers have also signed on, including those from the resources, consulting and fire and safety.

Also announced was the company resuming plans to expand globally, with a new Auckland-based senior systems architect appointed to lead Nexion’s enterprise-scale business opportunities in New Zealand.

The company also said its Nexion Pacific Pty Ltd entity, which covers operations across New Zealand, the Pacific Islands and Australia’s east coast, is now also seeking New Zealand-based acquisition opportunities to “bolster its in-country technical delivery capability”.

Nexion is also pursuing opportunities in Canada, and expects to start its expansion campaign for the North American region by Q1 of the 2023 financial year.