FULCRUM UTILITY SERVICES LIMITED
(“Fulcrum”, the “Company” or “the Group”)
Market Update
H1 trading in line with expectations; resilience to turbulence in energy market
The Board notes the recent share price movement and turbulence in the energy market and provides an update on the Group's activities. The Company expects to publish its interim results on 2 December 2021 .
Highlights
- Good progress in the first half of the year, with H1 trading in line with management expectations;
- Revenues for the six months to 30 September 2021 increased by approximately 47% on the previous year to £28.6 million (H1 2020: £19.5 million), demonstrating a strong recovery following COVID's impact;
- Adjusted EBITDA* of £1.0 million (H1 2020: loss of £1.0 million) in line with management expectations;
- Order book growth of 44% up £24.8 million to £80.9 million as at 30 September 2021 (31 March 2021: £56.1 million), driven by securing a variety of significant new contract wins;
- Successful completion of tranche three of the domestic gas assets transfer to ESP for a total consideration of £3.8 million, with £3.7 million of this received in cash on 1 June 2021;
- Net debt of £3.3 million (31 March 2021: £1.5 million) with headroom of £5.5 million on the Group's Revolving Credit Facility at 30 September 2021; and
- The business continues to demonstrate resilience within a volatile energy market.
*Adjusted EBITDA from continuing operations is operating profit / (loss) excluding the impact of exceptional items, other gains, depreciation, amortisation and equity-settled share-based payment charges.
Group operations remain insulated from current energy market volatility
The Group notes the recent volatility in the UK energy market, which has resulted in the failure of a number of energy suppliers and Supplier of Last Resort requirements being enacted.
The Board is pleased to report that its multi-utility contracting operations across the housing, Industrial & Commercial, including EV connections, and utility ownership and maintenance sectors have, to date, been unaffected by the current energy crisis. The Board is confident that, currently, the Group's smart metering business model, order book and delivery pipeline is robust and resilient to the turbulence being felt in the energy market.
Furthermore, the Board believes that although conditions for energy suppliers are currently uncertain, the strong Government stimulus and increasing regulatory framework are key market drivers for the Group's smart metering business and, as such, it sees significant and strategic growth opportunities for the Group in this arena across all aspects of meter life.
Terry Dugdale, CEO, said:
“I am pleased with the Group's performance in the period and, against the backdrop of ongoing turbulence in the energy market, I am pleased with the resilience that we have shown which, I believe, demonstrates the strength of our business model and diverse operations.
With a growing and healthy order book, robust business model and specialist energy infrastructure capabilities, we are well positioned to capitalise on the many and significant opportunities presented by the UK's transition to a net-zero future, and I am excited by the Group's future growth prospects.”