Appointment of CEO and trading update

RNS Number : 1578Q

Fulcrum Utility Services Ld

10 October 2013

 



10 October 2013                                                                                                                                

FULCRUM UTILITY SERVICES LIMITED

Appointment of Martin Donnachie as CEO

Trading update

Further to the announcement made by the Company this morning relating to the disposal of its non-core domestic-customer gas connection assets held by its subsidiary Fulcrum Pipelines Limited to ES Pipelines Limited (the "Disposal"), the Company is also pleased to announce the appointment of Martin Donnachie as CEO and to provide the following trading update.

Appointment of Martin Donnachie as CEO

The appointment of Martin Donnachie as Interim CEO in May 2013 was for an initial period of 6 months. The Board are pleased with the progress Martin has made over the past few months and Martin has now been appointed as permanent CEO and will join the Board of the Company with immediate effect.

Martin Donnachie, CEO, said: "I am very pleased that the Board has offered me the opportunity to transition to the CEO position on a permanent basis. Since joining the Company as Interim CEO earlier this year I have been struck by the market potential for Fulcrum's services and impressed by the quality of the people in the business. The Fulcrum team is committed to delivering excellent customer service and driving sustained growth, both of which will continue to be my focus going forwards."

Philip Holder, Chairman, said: "I am delighted that Martin has agreed to accept the CEO role on a permanent basis. The Board was impressed with Martin's performance during his interim tenure, rapidly demonstrating an ability to assess the key performance drivers of the business and instigating specific measures to affect continued progress."

Trading update

Revenue for the six months to 30 September 2013 will be in line with the second half of 2012/13. Gross margins will be reduced on previous periods, in line with management expectations, and reflecting the benefit in the prior year of the release of provisions for certain trading risks associated with the change in framework contractors in 2011. EBITDA for the first half will remain positive.

The restructuring process commenced in April 2013 was concluded in mid June, resulting in 37 roles being made redundant. This will yield an annual saving of £1.7 million which will be largely realised in the second half of this financial year.

New Director Appointment - AIM Rule Disclosures

Information relating to the appointment of Martin Thomas Donnachie as required under schedule 2(g) of the AIM rules.

Martin (aged 44) has served as Interim CEO at the Company since his appointment in May 2013. Martin has considerable experience gained from a range of interim leadership roles and, prior to that, 12 years of experience in the house building and construction services sectors, most recently with George Wimpey plc and Rok plc.

Martin currently holds no ordinary shares in the Company.

The Companies of which Martin Donnachie is or has been a director or partner in the past five years are as follows:

Current                                                                                                  Previous

Fulcrum Utility Services Limited                                                      November Maintenance & Improvement Limited

Fulcrum Group Holdings Limited                                                    

Fulcrum Utility Investments Limited

Fulcrum Infrastructure Services Limited

Fulcrum Pipelines Limited

Fulcrum Gas Services Limited

Fulcrum Connections Limited

Silver Daisy Limited

Silver Poppy Limited

Silver Lily Limited

Silver Bluebell Limited

RKT Consulting Limited                                                                     

No other information is required to be disclosed pursuant to schedule 2(g) of the AIM rules.

Enquiries

Fulcrum                                                 [phone]

Martin Donnachie (CEO)   

Marcus Green (CFO)                          

Cenkos Securities plc                         [phone]                          (Nominated adviser and broker)

Stephen Keys

Max Hartley

College Hill                                           [phone]                          (PR adviser)

Toby Bates

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.

 

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