FULCRUM UTILITY SERVICES LIMITED
(“Fulcrum” or “the Group”)
Final results for the year ended 31 March 2020
“Repositioning to capitalise on the UK's transition to a net-zero economy”
Financial performance
- Revenue down 5.8% to £46.1 million (2019: £48.9 million)
- Adjusted EBITDA from continuing operations* £4.5 million (2019: £10.9 million**)
- Profit before tax of £1.3 million (2019: £6.0 million**)
- Free cash flows*** of £6.5 million (2019: (£0.4) million)
- Adjusted earnings per share of 2.3p (2019: 3.4p**) and basic earnings per share of 0.7p (2019: 2.3p**)
- Net cash of £6.0 million as at 31 March 2020 (2019: £3.8 million)
- Net assets per share up 1.5% to 20.8p
- The Group will not pay a dividend in respect of the financial year ended 31 March 2020 in order to maintain a strong balance sheet and cash reserves given the ongoing unquantifiable impact of COVID-19
Operational highlights
- Sustained growth in the Group order book, up 9% since March 2019 to £66.2 million (2019: £60.5 million)
- Growth in the housing order book, up 24% to £25 million
- Strengthened smart metering operations, with 22% growth in the order book
- Sustained improvement in H2 (despite the impact of COVID-19) with revenues up 36% (H2: £26.6 million vs. H1 £19.5 million) and Adjusted EBITDA from continuing operations* up 115% (H2: £3.1 million vs. H1 £1.4 million).
- Expanded the Group's direct delivery model into South East England and London
- Executed the sale of its domestic asset portfolio and order book for a gross consideration of £48 million, supporting a strong balance sheet and the generation of surplus cash in the future. The first tranche of assets was sold on 31 March 2020 for a gross consideration of £17.9 million, enabling the Group to become debt-free
- Established a strategic relationship with E.S Pipelines Limited (ESP), opening the opportunity to compete on larger housing and I&C schemes, including Electric Vehicle (EV) charging infrastructure
- Continued to manage the business through COVID-19 well, providing essential works whilst putting the safety and wellbeing of our people, our customers and the communities we work in first and foremost
Outlook
- Despite the impact of COVID-19, trading in the new financial year has seen continual improvement month on month and is expected to return to pre-COVID-19 levels in Q2 of FY21
- Given the ongoing market uncertainties resulting from COVID-19, the Board will not be issuing guidance for the Group's 2021 financial year at this time
- In the longer term, the Group is well placed to execute its strategy and capitalise on the UK's net-zero and smart energy revolution
*Adjusted EBITDA from continuing operations is operating profit excluding the impact of exceptional items, depreciation, amortisation and equity settled share-based payment charges.
**Restated for IFRS16
***Free cash flow is operating cash flow less net capital expenditure
Commenting on the full year results, Daren Harris, Chief Executive Officer said:
“2020 has been a year of repositioning to focus the business on its strategic aim of capitalising on the UK's transition to a net-zero economy. Fulcrum already has established market positions and a strong service reputation across strategically important markets and has the critical capabilities needed to execute its strategy. Although 2020 presented short term market challenges, there is a substantial long-term opportunity for the Group to significantly grow its revenues across markets that have attractive long-term drivers given the UK's net-zero and smart energy revolution.”