Financial highlights
· Profit before tax of £3.1 million (2015: £1.6 million)
· EBITDA of £3.5 million (2015: £2.0 million)
· Revenue up by 0.6% to £17.2 million (2015: £17.1 million)
· Gross margin increased by 7.9%
· Net cash inflows from operations of £3.8 million, after the addition of £1.1 million in pipeline assets
· Cash of £12.5 million at September 2016 (2015: £5.6 million)
· Revolving credit facility of £4.0 million remains undrawn
· Basic earnings per share of 1.6p (2015: 1.0p).
Dividend policy and interim dividend
· The Board is of the view that the Company has reached a level of financial performance that enables it to adopt a formal dividend policy. The business is now achieving solid profits, generating cash and business prospects are positive. The Company has cash reserves, no debt and unused borrowing facilities. As a result, the Board considers that a dividend cover of around two, based on underlying, sustainable profit, is appropriate going forward. Furthermore, it is expected that the split of dividends between the interim and final dividends will be approximately one third / two thirds
· In line with the above stated dividend policy, the Board is today declaring an interim dividend of 0.6p per share for the 2016/17 financial year (2016: 0.3p per share) payable on 27 January 2017 to members on the register on 30 December 2016. Shares will be marked ex-dividend on 29 December 2016.
Operational highlights
· Secured a £4.0 million project to install a new gas pipeline to a food manufacturing plant
· Won and delivered an array of new gas, electricity and multi-utility contracts
· Order book at 30 September 2016 increased by £2.6 million (+12%) to £24.4 million, compared to 31 March 2016
· Recurring gas pipeline transportation income grown to an annualised £1.5 million
· Further operational efficiencies implemented, helping to increase the gross margin
· Full Meter Asset Manager (MAM) accreditation gained to adopt, run and operate all classes of meters
· Decision made to obtain independent distribution network operator (IDNO) licence to enable ownership of electrical assets
· New IT infrastructure project delivered on time and within budget, saving £0.2 million per annum over next five years.
Martin Donnachie, CEO of Fulcrum, said:
“Fulcrum continues to focus on becoming the UK's most trusted utility services partner and is delighted to deliver another set of strong results. The numbers demonstrate how our integrated business model of providing multi-utility infrastructure services and growing our asset base continues to deliver financial and operational growth.