TIDMFCRM
RNS Number : 2938N
Fulcrum Utility Services Ltd
29 September 2021
29 September 2021
FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or "the Group")
Trading Update
Fulcrum Utility Services Limited, a leading independent
multi-utility services provider that delivers infrastructure for
the UK's net-zero future, including the smart energy revolution and
expansion of the EV charging network, provides a trading update
ahead of its Annual General Meeting which is being held at 1.00pm
today at Fulcrum's offices, 2 Europa View, Sheffield, S9 1XH.
Trading update
Fulcrum has made positive progress in executing its strategy in
the first half of the year, with the Group trading in line with
management's expectations for the first half of the year.
New contract wins deliver significant order book growth
In the first half of the year, Fulcrum has continued to make
good progress in expanding its multi-utility contracting and smart
metering businesses and secured a variety of new contract wins
across all the sectors it operates in, resulting in order book
growth of 45%, up GBP25.0 million to GBP81.1 million at 31 August
2021 (31 March 2021: GBP56.1 million).
The significant order book growth in the period was underpinned
by the Group being awarded a series of high value contracts in its
core markets. This, the Board believes, demonstrates the Group's
ability to win larger opportunities and validates the strategy of
broadening the Group's offering in its core markets.
The Group has also refocused its attention on margin and cash
generation, with actions in this regard delivering a
non-operational headcount reduction of 15% since January 2021.
Smart Metering:
The Group significantly grew its smart metering order book in
the period by GBP19.0 million to GBP29.4 million (31 March 2021:
GBP10.4 million) and the order book is underpinned by GBP24.0
million in contracts with E and Ecotricity. The Board is pleased
that this momentum is continuing into the second half of the year.
The Group's smart metering exchange and management services have
seen a recovery post Covid-19 and the size of the addressable
target market for the Group's offering in this regard remains, the
Board believes, substantial.
As the UK's smart energy revolution continues, the Board further
believes that significant and strategic growth opportunities exist
for the Group as a participant in the smart energy infrastructure
market across all aspects of the meter life. These opportunities
are underpinned by an increasing regulatory framework alongside
other commercial drivers.
Noteworthy contract wins:
-- A five-year agreement, anticipated to be worth GBP20 million, with energy supplier E to manage its 320,000 UK
meter points and exchange an expected 80,000 meters.
Housing:
The UK Housing market has continued to be buoyant in the period
and the Group remains well positioned to e xpand on its currently
low market share in this sector. In the first half of the year, the
Group secured a strong flow of new contract wins, which were
enabled by the Group's improved competitiveness in this sector.
Noteworthy contract wins:
Two contracts, with a combined value of GBP5.9 million, to
deliver multi-utility infrastructure at a major new development,
Fairham. As preferred utility partner for the scheme, the Group
also has the opportunity to deliver multi-utility connections for
the development's 3,000 new homes in the future;
-- A GBP1.1 million contract to deliver multi-utility connections to 715 new homes on behalf of a national home
builder;
-- A GBP1.0 million project to install multi-utility infrastructure to connect 412 new homes on behalf of a national
developer; and
-- A GBP0.6 million contract to deliver utility infrastructure to power and heat 285 new homes on behalf of a
regional homebuilder.
Industrial & Commercial ("I&C") (including EV
Connections):
The Group's specialist high voltage and multi-utility
infrastructure capabilities position it well to capitalise on the
significant growth opportunities in the I&C and EV connections
sector, as the UK transitions to a low carbon economy. Fulcrum
secured a variety of major multi-utility infrastructure projects in
the period.
Noteworthy contract wins:
-- A GBP5.5 million contract to design and install 21.1km of multi-utility infrastructure that will heat and power a
large-scale greenhouse near Ely, Cambridgeshire;
-- A GBP4.9 million contract to design and install high voltage electricity, water, and gas infrastructure for a
major new innovative employment park in the West Midlands;
-- A GBP1.6 million project to deliver a 7km gas pipeline to help power a significant new cereal processing plant in
Northamptonshire;
-- A GBP0.7 million project to design and build a 1.8km pipeline that will connect a major new biomethane plant to
the gas network; and
-- A GBP0.4 million contract to deliver high voltage EV charging infrastructure that will power a commercial fleet
of electric vehicles.
Maintenance and Ownership:
The Group's portfolio of I&C utility assets continue to
deliver attractive and predictable long-term returns with potential
for further investment and growth, and the Group made good progress
in the execution of its strategy in the period, with the Group
successfully completing the planned transfer of the third tranche
of its domestic customer gas connection assets to ESP on 1 June
2021, for a total consideration of GBP3.8 million. Cash of GBP3.7
million was received on 1 June 2021, with the retention balance of
GBP0.1 million expected to be received on 31 May 2022. The cash
received supports the ongoing strengthening of the business and
assists the Group in capitalising on the growth opportunities
available to it.
Noteworthy contract wins :
-- Secured a new five-year high voltage electrical maintenance contract for two new 50MW battery storage facilities
located in Kent and Oxford which will provide power to sites including a new EV charging Superhub.
Outlook
The Board remains excited by the Group's growth potential,
encouraged by the positive progress made and order book growth
achieved in the period, and will continue to evaluate organic and
strategic growth opportunities to ensure that the Group meets its
fullest potential.
The extremely strong market drivers presented by the UK's energy
transition, continues to provide clear and significant growth
opportunities for Fulcrum, and the Board is confident that the
Group is well positioned to capitalise on them now and in the
future.
Terry Dugdale, CEO, said:
"I am pleased with the progress the Group has made in the first
half of the Financial Year. Our focus on growth in our core markets
and our improved ability to win larger contracts, delivered a
strong succession of significant contract wins and resulted in a
healthy order book growth. At the same time, our focus on financial
strength, cost and margin has been unwavering.
The positive progress we are making across all our core markets
gives me confidence for the full year and beyond. I see significant
opportunities for the business and so it is pleasing that the Group
continues to be increasingly better positioned to take advantage of
the many and significant opportunities presented by the UK's smart
energy revolution and the utility infrastructure the UK needs for a
net-zero future."
Enquiries:
Fulcrum Utility Services Limited +44 (0)114 280
Terry Dugdale, Chief Executive Officer 4150
Cenkos Securities plc (Nominated adviser and broker)
Camilla Hume / Callum Davidson (Nomad) / Michael +44 (0)20 7397
Johnson (Sales) 8900
Notes to Editors:
Fulcrum is a multi-utility infrastructure and services provider.
The Group operates nationally with its head office in Sheffield,
UK. It designs, builds, owns and maintains utility infrastructure
and offers smart meter exchange programmes.
https://investors.fulcrum.co.uk/
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END
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