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30 Jun 2020 10:43
30 June 2020
FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or the "Company")
Asset Sale Update
Fulcrum, the UK's market leading independent multi-utility infrastructure and services provider, is pleased to announce an increase in the cash consideration receivable for the sale of the first tranche of its domestic customer gas connection assets and associated meters, to E.S. Pipelines Limited (ESP).
As announced on 1 April 2020, the cash consideration for tranche one was initially estimated at £16.8 million (before related expenses) but has increased by £0.7 million to £17.5 million, as a result of:
· an increase in the annual Transportation Income (TI) generated by the assets sold; and
· an increase in the number of associated meters transferred
The additional consideration for tranche one has been agreed with ESP and cash of £0.7 million was received by the Group today, 30 June 2020.
The increase in TI is a result of the annual Relative Price Control (RPC) adjustments implemented in January 2020, in line with Ofgem licence conditions. Under the annual RPC adjustment, TI can increase or decrease and over the previous five years has ranged between a plus 2% and minus 2% threshold. The increase in January 2020 was at the top end of this range.
The increase in the number of associated meters transferred relates to new meters added to the estate between the contract agreement and the completion of tranche one on 31 March 2020. The total cash consideration from metering assets will vary in the future as a result of new meter additions to the estate and meter removals under the smart meter exchange programme.
These adjustments will also apply to future tranches of the asset sale. Accordingly, the total gross consideration receivable by the Company is now estimated at £48 million in cash, an increase of £2 million from the previous estimate of £46 million.
Enquiries:
Fulcrum Utility Services Limited Daren Harris, Chief Executive Officer
Cenkos Securities plc (Nominated adviser and broker) Max Hartley (Nomad) / Michael Johnson (Sales)
N+1 Singer (Joint Corporate Broker) Sandy Fraser / Rachel Hayes / Carlo Spingardi
Camarco (Financial PR advisers) Ginny Pulbrook / Tom Huddart
| +44 (0)114 280 4102
+44 (0)20 7397 8900
+44 (0)20 7496 3000
+44(0)203 757 4992
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Notes to Editors:
Fulcrum is a multi-utility infrastructure and services provider based in Sheffield, UK. The Company's primary business is the provision of utility infrastructure services to the residential, commercial and industrial markets throughout the mainland UK. These range from the design, installation or alteration of utility services for single site properties to large complex multi-site projects. Through its subsidiaries, Fulcrum Pipelines Limited and Fulcrum Electricity Assets Limited, Fulcrum is also licensed as an Independent Gas Transporter and Independent Distribution Network Operator, owning and operating gas and electrical assets that connect properties to the main UK gas and electricity networks. Fulcrum is also a meter asset manager, owning and operating meter assets across mainland UK.
http://www.fulcrum.co.uk/
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