LONDON (Alliance News) - Fulcrum Utility Services Limited Thursday said that it is selling its non-core domestic-customer gas connection assets, held by its subsidiary Fulcrum Pipelines Limited, to ES Pipelines Limited for a gross consideration of GBP6.3 million.
The utility services company said that the disposal will be settled in cash, and expects the net proceeds from the sale, after advisers' fees and transaction costs, to be around GBP5.9 million.
It said that the assets included in the disposal consists of approximately 31,000 domestic and mixed-use customer gas connection pipelines and associated equipment.
Fulcrum said that it will continue to invest in opportunities to add assets to its infrastructure services business, which provides the design and installation of gas connections for customers.
"The Disposal represents an opportunity to rejuvenate the prospects for the core business, providing Fulcrum with significant additional cash resources to support the existing business and new growth opportunities," said Chief Executive Officer, Martin Donnachie in a statement.
Fulcrum shares were amongst the biggest gainers Thursday morning, with shares spiking to 13.7%, trading at 5.40 pence, as the company said that revenues for the six months to September 30 will be in line with the second half of last year.
It said that its restructuring process which concluded earlier this year, resulted in 37 redundancies, which will yield an annual saving of GBP1.7 million, and will be mostly realised in the second half of the financial year.
The company also said that 44-year-old interim Chief Executive Officer Martin Donnachie, has now been appointed permanently to the role.
Shares in the firm are now trading at 5 pence per share, up 5.26%.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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