Fulcrum Utility Services performing 'strongly'

Independent multi-utility infrastructure and services provider Fulcrum Utility Services updated the market on its trading on Wednesday, reporting that it had performed “strongly” over the six-month period ending 30 September.

The AIM-traded firm said the successful execution of its strategy gave the board “confidence” that results would be in line with market forecasts for the financial year ending 31 March next year.

It would announce its half-year results on 4 December.

As at 31 August, the company's order book had increased by 5% to £44.1m - up from £42.1m as at 31 March.

In the period, two significant contracts were built out - a large gas pipeline to a food manufacturing plant, and a large high-voltage electricity infrastructure project for a battery storage site.

As those contracts transitioned from the order book, they were replaced by several other large contract wins.

Fulcrum said it had also continued to secure a “core portfolio” of projects up to £50,000 in revenue.

The company was continuing to grow its utility asset estate and the associated annuity revenue streams by adopting the assets it constructed, alongside assets purchased from external utility contractors, the board explained.

There had been “sustained growth” in the assets secured from external utility contractors, with the committed capital spend increasing from £10.4m as at 31 March to £15m as at 31 August.

It said the cash would be spent in the months and years ahead as those schemes were developed, increasing future transportation income.

The company had an undrawn debt facility of up to £20m.

Fulcrum reported that the integration of Dunamis was progressing “well” and remains on track, with increasing numbers of collaborative gas and electricity opportunities being generated.

Dunamis' electrical capabilities enhanced the group's position in the electricity and dual fuel markets, the board said, and also supported its expansion into specialist electricity infrastructure services, including electric vehicle charging solutions.

Fulcrum's ability to adopt and own those gas and electrical connections would further increase its portfolio of stable, secure, low risk and long term income-generating assets.

The company has recently become a meter operator (MOP) and now had all of the accreditations to underpin the future plans to install, adopt, own and operate smart meters.

“Our joined-up capabilities to design, build, own and operate utility infrastructure has underpinned the delivery on our strategy of infrastructure and utility asset growth,” said chief executive officer Martin Harrison.

“We have delivered our projects safely and maintained our track record of excellent customer service.

“The integration of Dunamis has helped to further enhance our market position in the UK gas and electricity markets.”