(Alliance News) - Fulcrum Utility Services Ltd on Thursday confirmed trading was in line with previous guidance as it unveiled initial findings from a strategic review announced in December.
The provider of essential utility services, including multi-utility connections and renewable energy infrastructure, said the review had identified a number of opportunities and operational improvements including development of a new sales strategy.
In addition, Fulcrum intends to exit the smart metering market, as it no longer views it an attractive opportunity given the volatility in the UK energy market.
The company said positive progress is being made and confirmed its full year performance will be in line with the expectations set out in the October trading update.
Interim chief executive Lindsay Austin will stay with the business for at least another six months to oversee the review.
Fulcrum also announced an increase to the facility agreement reported in December up to GBP11 million from GBP5 million. The terms remain unchanged.
The increase will support the firm through the review and ensure it continues to have adequate working capital.
One of the funding partners, Bayford, has indicated it intends to provide further support beyond the term of facility, if required, the company said.
Fulcrum confirmed that this, together with the amended facility is expected to provide the funding required for the trading year ahead and will support the "journey back to profitability."
Shares in Fulcrum Utility Services rose 2.4% to 1.05 pence each in London on Thursday.
By Jeremy Cutler, Alliance News reporter
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