Fulcrum Utility Services Ltd Domestic Asset Sale Update (2984A)
01 June 2021 - 4:00PM
UK Regulatory
TIDMFCRM
RNS Number : 2984A
Fulcrum Utility Services Ltd
01 June 2021
1 June 2021
FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or "the Group")
Domestic Asset Sale Update
Further to its initial announcement on 23 December 2019, Fulcrum
announces an update on the sale of its domestic customer gas
connection assets and associated meters to E.S. Pipelines Limited
("ESP") .
The Group is pleased to confirm the completion of the transfer
of the third tranche of its domestic customer gas connection assets
to ESP on 1 June 2021, for a total consideration of GBP3.8 million.
Cash of GBP3.7 million will be received on 1 June 2021, with the
retention balance of GBP0.1 million expected to be received on 31
May 2022.
The cash received strengthens the Group's balance sheet and
supports its strategy and growth ambitions.
In addition, the Group has received a further GBP0.1 million in
cash in respect of the first and second tranche of assets
transferred under the ESP asset sale. This additional payment is a
result of the Group achieving the first enhanced payment milestone
under the asset sale agreement.
The total gross consideration receivable by Fulcrum is expected
to be c.GBP49 million. GBP25.8 million has been received to-date,
leaving approximately GBP23.2 million to be received, with the
majority expected to be collected over the next two to three
years.
The arrangement with ESP also includes further milestone targets
which, if achieved, would trigger additional enhanced payments of
up to GBP3.9 million over the remaining term of the contract.
Terry Dugdale, CEO, said:
"We are pleased to report another successfully completed tranche
in the asset sale to ESP. The proceeds from this third tranche, and
the future proceeds from the sale, provide the Group with
additional financial strength that supports the continued
strengthening of the business and the execution of our strategy and
growth plans."
Enquiries:
+44 (0)114 280
4102
Fulcrum Utility Services Limited
Terry Dugdale, Chief Executive Officer
+44 (0)20 7397
Cenkos Securities plc (Nominated adviser and broker) 8900
Max Hartley (Nomad) / Michael Johnson (Sales)
N+1 Singer (Joint Corporate Broker) +44 (0)20 7496
Sandy Fraser / Rachel Hayes 3000
Notes to Editors:
Fulcrum is a multi-utility infrastructure and services provider.
The Group operates nationally with its head office in Sheffield, UK
and its main business is the design, build, ownership and
maintenance of energy connections and their related utility
infrastructure. The Group's offering also extends to smart meter
ownership and exchange programmes, and the selective ownership and
maintenance of utility networks and infrastructure.
https://investors.fulcrum.co.uk/
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END
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