Pre-close Trading Update

RNS Number : 6786A

Fulcrum Utility Services Ltd

28 March 2017

 

28 March 2017

FULCRUM UTILITY SERVICES LIMITED

Pre-close trading update for the financial year ending 31 March 2017

Fulcrum Utility Services Limited ("Fulcrum" or the "Company"), the UK's market leading independent multi-utility infrastructure and services provider, today provides a trading update ahead of its financial year-end on 31 March 2017. The Company will publish its preliminary results on 6 June 2017.

Trading update

The Company has performed strongly over the 12-month period ending 31 March 2017. Revenue and cash are expected to be in line with market forecasts, whilst EBITDA is expected to be slightly ahead of market expectations.

As at 28 February 2017, the Company's order book had increased by £7.2m (33%) to £29.0m, from £21.8m at 31 March 2016. This increase highlights progress within the business during 2016/17 and includes £4.2m for the gas conversion contract in the South West reported at the half-year. The Company continues to secure electricity contracts and a broad base of gas and multi-utility projects of less than £50,000 revenue. Notable contract wins in H2 include:

·      A £1.1m, 7.7km gas pipeline project to convert a Scottish distillery from its existing fuel source to natural gas

·      A £0.4m new gas pipeline to feed a Short Term Operating Reserve (STOR), which will use gas to generate electricity to deliver more back-up electricity to the national grid when required

·      A £0.3m multi-utility contract to install gas, electricity, water and telecoms to three commercial units in London

·      An £0.2m infrastructure contract to deliver new gas and electricity connections to a 100-plot housing development in Staffordshire.

In accordance with the stated asset growth strategy, the Company has seen a ramping-up of agreements to adopt external gas assets from utility infrastructure providers (who do not have an independent gas transportation licence that enables them to own gas pipelines). The value of assets to be purchased is currently £2.8m. The cash will be spent as these schemes are built out, increasing future transportation income. The Company also confirms that plans are on track to obtain the independent distribution network operator (IDNO) licence by the end of the calendar year to enable ownership of electrical assets.

Martin Donnachie, Chief Executive of Fulcrum, stated: "We have achieved our aim of growing the sales order book - 2016/17 has seen continued expansion of both our infrastructure services and asset ownership businesses. The business has an established and growing market leading position. We will continue to focus on improving customer service, building our order book and using the cash generated to increase the asset base and the recurring transportation income, all whilst maintaining and improving operational disciplines. We remain confident in our outlook for the business."

Enquiries:

Fulcrum Utility Services Limited Craig Baugh, Head of Marketing and Communications Cenkos Securities plc (Nominated adviser and broker) Max Hartley (Nomad) / Alex Aylen (Sales) Camarco (Financial PR advisers) Ginny Pulbrook / Tom Huddart

[phone] [phone] [phone]

Notes to Editors:

Fulcrum is a multi-utility infrastructure and services provider based in Sheffield, UK. The Company's primary business is the provision of utility infrastructure services to the residential, commercial and industrial markets throughout the main land UK. These range from the design, installation or alteration of utility services for single site properties to large complex multi-site projects. Through its subsidiary, Fulcrum Pipelines Limited, Fulcrum is also licensed as an Independent Gas Transporter, owning and operating gas pipelines that connect properties to the main UK gas networks.

http://www.fulcrum.co.uk/

 

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