(Sharecast News) - Fulcrum Utility Services updated the market on the sale of its domestic customer gas connection assets and associated meters to ES Pipelines (ESP) on Tuesday, confirming the transfer of the second tranche of connection assets on 30 November, for a total consideration of £4.8m.
The AIM-traded firm said cash of £4.7m was received on 30 November, with the retention balance of £0.1m expected to be received on 31 May 2022.
It said the total consideration and the cash received were both "slightly higher" than announced on 2 November, further strengthening its balance sheet and supporting its strategic growth ambitions.
In addition, Fulcrum said it had received a further £0.4m in cash for the first tranche of assets transferred under the ESP asset sale.
That additional payment was the result of the group achieving the first enhanced payment milestone under the asset sale agreement.
The total gross consideration receivable by Fulcrum was expected to be around £49m.
It said £22m had been received to-date, leaving around £27m to be received, with the majority expected to be collected over the next two to three years.
The arrangement with ESP also included further milestone targets which, if achieved, would trigger additional enhanced payments of up to £4m over the remaining term of the contract.
"I am very pleased to confirm the successful completion of the second tranche of the asset sale to ESP," said chief executive officer Daren Harris.
"The current and future proceeds from the sale support our strategic growth ambitions and provide us with additional financial strength to capitalise on the significant and long-term opportunities that a net-zero future presents to the group."
At 0909 GMT, shares in Fulcrum Utility Services were up 2.52% at 42.29p.
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