FCRM.L Regulatory News (FCRM)

14 January 2015

FULCRUM UTILITY SERVICES LIMITED

Move to directly managed service delivery

Fulcrum Utility Services Limited ("Fulcrum", the "Company"), the UK based energy solutions company, today announces that it will take the management of operational delivery in-house, giving the Company direct control from design through to installation across England and Wales. The primary benefits of this move include an enhanced customer proposition and increased profitability.

As part of this initiative, Fulcrum's alliance with McNicholas Construction (Services) Ltd ("McNicholas") will come to an end on Tuesday 31st March 2015, this having been mutually agreed by both parties. People employed by McNicholas under the alliance will TUPE transfer to Fulcrum, significantly increasing the size of the Company's workforce.

The changes to the Company's model are expected to be profit enhancing in the financial year ending March 2016 and thereafter. The move is not expected to give rise to significant costs and the Company's profitability for this year remains in line with expectations. Due to the Company's more selective approach to tendering for more profitable work, margins are continuing to strengthen and revenues for this year will be approximately 5% lower than previously expected.

Martin Donnachie, Chief Executive Officer at Fulcrum, said:

"The move to take direct management of our delivery is a logical evolutionary step in enabling us to provide the best customer service in the industry. Operating as a single organisation will make us more agile and allow us to accelerate some of our other plans such as improving our multi-utility capability."

"This move has been mutually agreed by Fulcrum and McNicholas, who we have enjoyed working with over the last three years. I firmly believe that we could not have had a better partner than McNicholas to enable us to reach this point and I would like to thank them for their significant contribution."

Barry McNicholas, Chief Executive Officer at McNicholas, said:

"We are delighted to have partnered Fulcrum on their journey up to this point and we wish them every success in the future. We will continue to provide full support and will work constructively with Fulcrum throughout the transition period."

Enquiries:

Notes to Editor

Fulcrum is an energy solutions company based in Sheffield, UK. The Company's primary business is the provision of unregulated utility connection services to the residential, commercial and industrial markets throughout the UK. These range from the design, installation or alteration of connections for single site properties to large complex multi-site projects. Through its subsidiary, Fulcrum Pipelines Limited, Fulcrum is also licensed as an Independent Gas Transporter, operating gas connection pipelines that connect properties to the main UK gas network.

http://www.fulcrum.co.uk/