16 Feb 2011 09:21
Fulcrum Utility Services Limited
Final Settlement with National Grid and Update on Trading
Fulcrum Utility Services Limited ("Fulcrum" or the "Company") is pleased to announce that it has received a payment of £8.2 million from National Grid for the surrender of tax losses in the period prior to completion of the acquisition of Fulcrum Group Holdings Limited from National Grid in July 2010. Fulcrum has also agreed with National Grid that no further payments are due under the SPA relating to the acquisition. The £8.2m will be used to fund working capital.
Trading in the business since acquisition has been broadly in line with management expectations and management expect Fulcrum's cash position at the year end to be better than anticipated. Margins in the existing order book are improving from the level of profitability inherited on acquisition which was lower than anticipated. Strong overall revenue performance has largely offset the effect of the adverse weather conditions during December which significantly disrupted work planned for that month. The Board remains confident that it can continue to execute the strategy it outlined at the time of the acquisition in July 2010.
Enquiries:
Cenkos Securities plc Beth Mckiernan/Stephen Keys
Merlin PR Toby Bates / Del Jones | (nominated advisor and broker) | |
| +44 (0)20 7397 8900
+44 (0)20 7726 8400 | |
Notes to Editor
Fulcrum is an energy solutions company based in Rotherham, UK. The company's primary business is the provision of unregulated gas connection services to the residential, commercial and industrial markets throughout the UK. Connections range from the implementation or alteration of connections between single site properties and the gas mains to large complex multi-site new connections. Through its subsidiary, Fulcrum Pipelines, Fulcrum is also licensed as an Independent Gas Transporter, operating pipelines that connect over 16,000 properties to the gas mains.