Fulcrum Utility Services - Domestic Asset Sale Update
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FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or "the Group")
Domestic Asset Sale Update
Fulcrum announces an update on the sale of its domestic customer gas connection assets and associated meters to E.S. Pipelines Limited ("ESP") .
The Group is pleased to confirm the completion of the transfer of the second tranche of its domestic customer gas connection assets to ESP on 30 November 2020, for a total consideration of £4.8 million. Cash of £4.7 million was received on 30 November, with the retention balance of £0.1 million expected to be received on 31 May 2022. The total consideration and the cash received are both slightly higher than announced on 2 November 2020 and further strengthens the Group's balance sheet and supports its strategic growth ambitions.
In addition, the Group has received a further £0.4 million in cash in respect of the first tranche of assets transferred under the ESP asset sale. This additional payment is a result of the Group achieving the first enhanced payment milestone under the asset sale agreement, as communicated on 2 November 2020.
The total gross consideration receivable by Fulcrum is expected to be c.£49 million. £22 million has been received to-date, leaving approximately £27 million to be received, with the majority expected to be collected over the next two to three years.
The arrangement with ESP also includes further milestone targets which, if achieved, would trigger additional enhanced payments of up to £4 million over the remaining term of the contract.
Daren Harris, CEO, said:
"I am very pleased to confirm the successful completion of the second tranche of the asset sale to ESP. The current and future proceeds from the sale support our strategic growth ambitions and provide us with additional financial strength to capitalise on the significant and long-term opportunities that a net-zero future present to the Group."