FCRM.L Regulatory News (FCRM)

Fulcrum Utility Services Limited

Completion of New Contractor Agreements

Fulcrum Utility Services Limited ("Fulcrum" or the "Company") is pleased to announce that it has successfully completed the re-tendering of its outsourced contractor arrangements and has signed framework agreements with Carillion Utility Services Limited, McNicholas Construction Services Limited, and Turriff Contractors Limited to become the new providers of these services to Fulcrum across the UK. The contracts took effect from 5 November 2011 and have replaced the Company's previous outsourced contractor relationships that dated back to Fulcrum's ownership by National Grid.

Fulcrum has put in place thorough processes to ensure that there will be no disruption to the Company's level of customer service during the transition.

John Spellman, CEO of Fulcrum said:

"We are delighted to have concluded the appointment of new contractors which is an integral part of the Company's long term strategy of delivering outstanding client service at competitive prices and returning Fulcrum to profitability. We look forward to working with Carillion, McNicholas, and Turriff as our selected contractors over the coming years.

Whilst the complex process of moving to these new arrangements has taken us longer than we would have liked, we believe that we have achieved the best possible outcome for the Company in the long term. Critically, these new relationships will enable us to expand our offering and enhance significantly the level of service to our customers. The structure of the new contractor model will also allow Fulcrum to operate from a more efficient cost base, the full-year effect of which is expected to deliver improved profitability in line with expectations".

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Notes to Editor

Fulcrum is an energy solutions company based in Sheffield, 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.