Fulcrum Utility Services Ltd Pre-close trading update (1606J)
28 March 2018 - 5:01PM
UK Regulatory
TIDMFCRM
RNS Number : 1606J
Fulcrum Utility Services Ltd
28 March 2018
28 March 2018
FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or the "Company")
Pre-close trading update for the financial year ending 31 March
2018
Fulcrum Utility Services Limited, 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 2018. The Company will publish its preliminary results on
5 June 2018.
Trading update
The Company has performed strongly over the 12-month period
ending 31 March 2018. The successful execution of the Company's
strategy gives the Board confidence that results will be in line
with their expectations for the financial year ending 31 March
2018.
In February 2018, the Company completed the acquisition of The
Dunamis Group Limited ("Dunamis"), a leading electrical
infrastructure company. The Company is pleased to report that the
integration of Dunamis is progressing well, with management
focussing on cross selling opportunities within the enlarged group.
In line with its strategy to increase its ownership of annuity type
revenue generating assets, Fulcrum's operating subsidiary, Fulcrum
Electricity Assets Limited, has now commenced activity that will
enable the adoption and ownership of electricity assets constructed
by Dunamis in the future.
As at 28 February 2018, the Company's combined order book had
increased by GBP8.0m (26%) (including GBP6.0m for Dunamis) to
GBP38.3m, from GBP30.3m at 31 March 2017. This increase highlights
the continued progress and delivery on its growth strategy during
2017/18. The Company continues to secure a broad base of gas,
electricity, dual fuel and multi-utility projects. Some notable
contract wins in H2 include:
-- a GBP0.5m multi-utility contract to install gas, electricity
and water to a 135 plot development in Lancashire;
-- a GBP0.5m gas infrastructure project for a mixed use
development, including 326 new homes, in West Sussex; and
-- a GBP0.3m contract to install dual fuel infrastructure to
three new commercial units in London.
In line with its asset adoption strategy, the Company continues
to grow its gas asset estate and the associated annuity revenue
streams, by adopting the assets that it and other Utility
Infrastructure Providers (UIPs) construct. There has been sustained
growth in the gas assets secured from UIPs, with the committed
external capital increasing from GBP2.8m as at 31 March 2017 to
GBP9.5m as at 28 February 2018. The Company's IDNO electrical asset
licence is fully operational and early enquiry levels from external
independent connection providers for Fulcrum to adopt their
electricity assets are encouraging.
To support future growth in utility assets, the Company is
pleased to confirm that it has received credit committee approval
for a new debt facility for up to GBP20.0 million with its existing
bank, Lloyds Banking Group plc, replacing its previous undrawn
GBP4.0 million facility.
Bolt-on acquisition
The Company today announces that it has acquired CDS Pipe
Services Limited ("CDS"), a utility business that provides a range
of specialised engineering services for a total consideration of
GBP1.4m (on a debt free/cash free basis). Fulcrum has previously
subcontracted such specialist elements of its projects to CDS and
this acquisition brings these engineering capabilities in-house to
further strengthen the Company's direct delivery capabilities.
The consideration will be satisfied through a mix of cash and
671,142 new ordinary shares in Fulcrum (the "Consideration Shares")
issued to the sellers of CDS. The Consideration Shares shall be
subject to lock in restrictions for a period of three years
following their admission to trading on AIM, with one third of the
Consideration Shares permitted to be sold via orderly market
arrangements after each of three anniversaries following
Admission.
An application has been made to the London Stock Exchange plc
for the Consideration Shares to be admitted to trading on AIM. It
is expected that Admission of the Consideration Shares will become
effective and that dealings in the Consideration Shares will
commence on AIM on 4 April 2018. Following Admission, the Company
shall have 211,327,450 ordinary shares in issue admitted to trading
on AIM. This figure may be used by shareholders in the Company as
the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to
their interest in, the share capital of the Company under the FCA's
Disclosure Guidance and Transparency Rules.
Martin Harrison, Chief Executive of Fulcrum, stated: "The
successful execution of the Company's strategy continues to place
Fulcrum in a strong financial and operational position. The recent
acquisition of Dunamis and CDS announced today have enhanced our
service offering and in-house capabilities, establishing and
growing our market leading position in both infrastructure delivery
and utility asset ownership. We remain confident in our outlook for
the business".
Enquiries:
Fulcrum Utility Services Limited +44 (0)114
Craig Baugh, Head of Marketing and 280 4150
Customer Engagement
Cenkos Securities plc (Nominated adviser +44 (0)20 7397
and broker) 8900
Max Hartley (Nomad) / Nick Searle (Sales)
Camarco (Financial PR advisers) +44(0)203 757
Ginny Pulbrook / Tom Huddart 4992
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 mainland UK. These
range from the design, installation or alteration of utility
services for single site properties to large complex multi-site
projects. Through its subsidiaries, Fulcrum Pipelines Limited and
Fulcrum Electricity Assets Limited, Fulcrum is also licensed as an
Independent Gas Transporter and Independent Distribution Network
Operator, owning and operating gas and electrical assets that
connect properties to the main UK gas and electricity networks.
Fulcrum is also a meter asset manager, owning and operating meter
assets across mainland UK.
In 2018 Fulcrum acquired the Dunamis Group, an electrical
infrastructure services company, creating one of the UK's leading
gas and electrical infrastructure services groups.
http://www.fulcrum.co.uk/
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLFFEIVTIDFIT
(END) Dow Jones Newswires
March 28, 2018 02:01 ET (06:01 GMT)
Fulcrum Utility Services... (LSE:FCRM)
Historical Stock Chart
From Apr 2024 to May 2024
Fulcrum Utility Services... (LSE:FCRM)
Historical Stock Chart
From May 2023 to May 2024