(An item published 1200 Tuesday misstated the share price. The correct version follows.)
LONDON (Alliance News) - Fulcrum Utility Services Ltd Tuesday said it has entered a five year alliance with contractor partner McNicholas Construction Ltd, a deal it hopes will boost competitiveness and enable it to deliver more streamlined services with fewer people involved in individual projects.
Last month, Fulcrum made McNicholas its sole framework delivery partner, a move aimed at taking advantage of the booming new build housing market while simplifying business processes and improving the efficiency of back office functions including pricing and design services.
Fulcrum Tuesday said the removal of duplication in project delivery through this new arrangement will lead to a structuring of roles within the two companies, resulting in a more profitable model for Fulcrum moving forward.
The company said the financial impact of the arrangement is expected to be broadly neutral in 2014/15 as savings will be matched by exceptional costs. Significant annualised savings are expected to be achieved in subsequent years, it added.
Fulcrum Utility Services shares were untraded Wednesday. It closed at 8.375 pence Tuesday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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