FULCRUM UTILITY SERVICES LIMITED
(“Fulcrum” or “the Group”)
Final results for the year ended 31 March 2021 (“FY21”)
“Emerging stronger to connect the UK's net-zero future”
Financial performance
· Revenue up 2.2% to £47.1 million (2020: £46.1 million)
· Adjusted EBITDA from continuing operations* of £0.1 million (2020: 4.5 million), in line with the expectations stated in our interim results
· Loss before tax of £11.5 million (2020: £1.3 million profit), impacted by exceptional items
· Cash outflow from operating activities of £2.4 million (2020: 2.1 million inflow)
· Adjusted earnings per share of (0.9)p (2020: 2.3p) and basic earnings per share of (4.6)p (2020: 0.7p)
· Net debt of £1.5 million as at 31 March 2021 (2020: £6.0 million net cash)
· Debt facility headroom (from facilities negotiated during the year) of £4.3 million as at 31 March 2021
· Net assets of £35.4 million (2020: £46.3 million)
· Net impairment to utility assets, intangible assets and deferred tax assets of £9.0 million** in the year (2020: £1.0 million net revaluation)
· The Board will not be recommending the payment of a dividend in respect of the financial year ended 31 March 2021, considering the loss for the year and continuing near-term economic uncertainty
Operational highlights
· Remained operational throughout Covid-19 with a safe, effective and rapid response
· Renewed focus on margin and cost discipline
· Made good progress in the execution of our strategy despite Covid-19, with selective investment to strengthen operational and business capabilities and secure new talent
· Balance sheet strength supported by the ongoing and successful execution of the sale of the Group's domestic asset portfolio
· Robust order book of £56.1 million and revised prudent approach to its valuation
· Secured key contracts across all sectors, resulting in:
· Strengthened smart metering operations, with a 34% growth in the number of meters in the orderbook expected to be exchanged
· A £4.2 million contract to provide 13.5km of new of high voltage electrical infrastructure for a major redevelopment project
· Winning our first project with over 1,500 multi-utility connections
· Successfully tendered on larger contracts, resulting in significant contract awards post year end
· Named as one of the top 10 utility companies to work for in 2021, recognising the positive and supportive culture the Group has developed, particularly during the pandemic
*Adjusted EBITDA from continuing operations is operating loss excluding the impact of exceptional items, other gains, depreciation, amortisation and equity-settled share-based payment charges
**Net impairment of utility assets and utility assets under construction (£3.5 million), intangible assets (£4.9 million) and deferred tax assets (£0.6 million)
Commenting on the full year results, Terry Dugdale, Chief Executive Officer said:
“Just like many businesses, Fulcrum was affected by the considerable challenges presented by the Covid-19 pandemic in the year, and this is reflected in our financial performance.
However, we were agile, resilient and responded quickly and effectively to Covid-19, remaining operational and making progress in the execution of our strategy, with full year performance being in line with the expectations stated in our interim results.
We still have much more to do, but we have emerged from FY21 stronger. Since taking over the role of CEO in January 2021, we have renewed our focus on margin and cost discipline and are better equipped to take advantage of the significant opportunities that are presented to us as we connect the UK on its journey to a net-zero future. I look to the future with increasing confidence.”