Coronavirus Update

Fulcrum Utility Services Limited - Unaudited interim results for the six months ended 30 September 2019

Financial Highlights*

·      Revenue £19.5 million (2018: £24.8 million)

·      Adjusted EBITDA £1.4 million (2018: £4.7 million)

·      Loss before tax £0.9 million (2018 profit before tax: £2.6 million)

·      Net cash outflows from operations before Tax of £0.0 million (2018 inflows: £5.9 million)

·      Basic loss per share of 0.4p (2018 earnings per share: 1.2p)

·      Net debt at the period end of £2.3 million (31 March 2019 net cash £3.8 million) reflecting the investment of £5.1 million in acquiring utility assets

·      Interim dividend deferred until completion of the sale of the domestic gas asset portfolio, as described in the announcement published today  

* comparative figures for the period to 30 September 2018 have been restated in accordance with IFRS 16 and IFRS 15, as explained in the Annual Report and Accounts to 31 March 2019.

Operational Highlights

·      Sustained growth in the infrastructure order book**, up 3.7% since March 2019 to £62.6 million (March 2019: £60.5 million)

·      Increased operational capacity across the Group, including the expansion of the Group's direct-delivery model into South East England and London

·      Smart metering services business established and first meter exchanges complete

·      Sustained focus on operational efficiency to improve our capacity and optimise profits

·      Increased direct delivery offering to strengthen our electrical and multi-utility capabilities

Post Period End

·      Sale of domestic customer gas connection assets, including the order book and associated meters, for net consideration of £33 million in cash to ESP Pipelines Limited ("ESP")

·      Total gross consideration of approximately £46 million in cash; the net consideration of £33 million is stated after deducting commitments in relation to external order book assets of £13 million

·      The Group will continue to focus on adopting Industrial and Commercial assets but intends to shift away from adopting domestic assets utilising ESP as its preferred asset adopter

·      The Group has seen positive order inflow in recent months, securing a variety of large contracts across all of its business areas at the end of H1 and in early H2. These will partially contribute to revenue within the second half of the current financial year

·      To date, sales order intake in Q3 has averaged £5.4 million** per month, up 40% on the monthly average achieved in H1

·      The search for a permanent CEO is ongoing

** The amount of secured infrastructure work representing the construction value and the utility asset value

 

Phil Holder, Chairman of Fulcrum, said:

"Performance in H1 has been impacted by ongoing economic uncertainty but, positively, the Group has recently seen improved sales order intake in Q3. In addition, we are hopeful that the General Election result will reduce economic and political uncertainty, providing greater clarity and improving decision making on contracts.

The sale of our domestic utility assets to ESP also significantly strengthens our balance sheet and will provide a basis for a return of capital to shareholders. The Group's core growth strategy will focus on its design and build utility connections activities, as well as on continuing to adopt assets in its traditional I&C market where appropriate. Our new relationship with ESP will enhance the Company's capabilities in the future in all segments of the market."