Fulcrum Utility Services Ltd Trading Update (2404U)
28 March 2019 - 6:00PM
UK Regulatory
TIDMFCRM
RNS Number : 2404U
Fulcrum Utility Services Ltd
28 March 2019
28 March 2019
FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or the "Company")
Trading update
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 2019. The Company will publish its preliminary results on
4 June 2019.
Operational Update
It has been a year of progress for the Fulcrum Group. As at 28
February 2019, the Company's combined order book had increased by
23% to GBP47.0 million, up GBP8.7 million from GBP38.3 million on
28 February 2018. This increase reflects the benefits of
cross-selling with Dunamis and highlights the continued delivery of
Fulcrum's growth strategy during FY2019, with a broad base of
multi-utility, dual fuel, gas, electricity, new housing and
electric vehicle charging projects secured.
A relatively buoyant housing market, has led to a large volume
of housing projects secured and delivered in the second half of the
year. Our success with these developments has resulted in a more
cash consumptive profile across the period of these contracts. This
has supported continued growth in the Company's utility asset
estate and the associated annuity revenue streams, in-line with the
Group's asset adoption strategy.
Dunamis' high voltage design and build business has been
impacted by external market factors during the last quarter of the
year. In particular, the capacity market suspension by the EU in
November 2018, is delaying a significant number of customer
investment decisions and this uncertainty is likely to continue
into FY2020. In line with our strategy to broaden the business,
Dunamis has continued to grow and diversify into a core portfolio
of smaller, higher margin, commercial electrical opportunities. In
addition, the recurring maintenance part of the business, delivered
by Maintech Power, delivered a strong year of growth which is
expected to continue.
There continues to be an encouraging level of opportunity within
the electric vehicle (EV) charging market and the Company is
working with a number of charging network providers and energy
suppliers. Dunamis has secured and delivered a number of these EV
contracts during the second half of the year.
There has been sustained and material growth in the Company's
utility asset estate and the associated annuity revenue streams by
the adoption of the assets it constructs, alongside assets
purchased from external utility contractors, with the committed
capital spend increasing from GBP10.4 million as at 31 March 2018
to GBP18.3 million as at 28 February 2019. The cash will continue
to be spent in the months and years ahead as these schemes are
developed, increasing future transportation income. As at today the
Company has drawn GBP3.0 million of its debt facility of up to
GBP20.0 million supporting its external purchases of utility
assets.
The Company entered the smart metering market during the year
and gained the accreditations to install, own and operate smart
meters and is currently progressing a number of material
opportunities.
Trading Update & Outlook
As announced last week, revenue for the financial year ending 31
March 2019 is expected to be approximately GBP57.0 million (2018:
GBP44.6 million) and adjusted EBITDA for the same period is
expected to be approximately GBP11.0 million (2018: GBP8.4
million).
The Board believes that Fulcrum's breadth of services across
multi utility, gas and electrical markets, sees it well positioned
to capitalise on opportunities across the infrastructure and asset
ownership sectors. The headwinds encountered in the larger
electrical infrastructure sector continue to present challenges but
the Board remains confident in the Company's longer term
prospects.
Martin Harrison, Chief Executive of Fulcrum, said:
"We continue to see sustained growth in our gas infrastructure
and asset business and are encouraged by the smart metering,
cross-selling and electric vehicle charging opportunities for the
Company. Despite the current conditions in the larger electrical
sector, we remain confident that the successful execution of the
Company's strategy and balanced approach to the industrial,
commercial and residential markets will deliver long term,
sustainable growth for Fulcrum."
ENDS
Information contained within this announcement was deemed by the
Company to constitute inside information under the Market Abuse
Regulation (EU) No. 596/2014.
Enquiries:
+44 (0)114 280
Fulcrum Utility Services Limited 4102
Hazel Griffiths, Chief Financial Officer
Cenkos Securities plc (Nominated adviser and broker) +44 (0)20 7397
Max Hartley (Nomad) / Michael Johnson (Sales) 8900
Camarco (Financial PR advisers)
Ginny Pulbrook / Tom Huddart +44(0)203 757 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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