Fulcrum sells domestic gas connection assets for 6.3m pounds

Fulcrum Utility Services said it was selling the domestic gas connection assets of its subsidiary Fulcrum Pipelines for 6.3m pounds. The sale, to Surrey-based ES Pipelines, includes 31,000 domestic and mixed-use customer gas connection pipelines and associated equipment which made an operating profit of £0.4m in the year to the end of March 2013 on sales of £1m.Following the sale, Fulcrum Pipelines will still own 2,000 industrial and commercial pipeline assets. Chairman Philip Holder said the disposal would allow the Sheffield-based group to focus on its core business which is in the design and installation of gas connections for industrial, commercial and domestic customers. He said: "The consideration received realises value which the board feels was not fully recognised in the group's market valuation, with the net proceeds representing almost 80% of the market capitalisation of the company on the last trading day before this announcement."At the same time the company announced that Martin Donnachie has been made permanent Chief Executive Officer. He had been filling the role on an interim basis since May. It also said that revenues for the six months to the end of September would be in line with the second half of last year. Shares in the company were up 2.6% at 4.88p at 12:50 on Thursday.TB