REG - Fulcrum Utility Srvc - Market Update

Fulcrum Utility ServicesAnnouncement

17/11/2021 14:10

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RNS Number : 7125S  Fulcrum Utility Services Ltd  17 November 2021

17 November 2021

 

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."

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed
inside information for the purposes of Article 7 of Regulation (EU) No
596/2014 until the release of this announcement.

 

Enquiries:

 Fulcrum Utility Services Limited                                   +44 (0)114 280 4150

 Terry Dugdale, Chief Executive Officer


 Cenkos Securities plc (Nominated adviser and broker)               +44 (0)20 7397 8900

 Camilla Hume / Callum Davidson (Nomad) / Michael Johnson (Sales)

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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