Domestic Asset Sale Update & Dunamis Contract Wins

RNS Number : 9193E

Fulcrum Utility Services Ltd

04 March 2020

 

4 March 2020

FULCRUM UTILITY SERVICES LIMITED

("Fulcrum" or the "Company")

Domestic Asset Sale Update and Dunamis Contract Wins

Fulcrum Utility Services Limited, the UK's market leading independent multi-utility infrastructure and services provider, today announces that the key conditions in relation to the Sale of its domestic customer gas connection assets and order book and associated meters, to E.S. Pipelines Limited ("ESP"), announced on 23 December 2019 (the "Sale"), in particular those relating to Ofgem and the Competition and Markets Authority ("CMA"), have now been satisfied . This means that completion of the Sale will occur by the end of March 2020.  

The estimated net consideration of £33 million will be received in tranches with the initial tranche of approximately £17 million received at completion and the balance to be received over the next four years.  The proceeds from the initial tranche will be used to repay in full existing borrowings at completion which are estimated to be £12 million.  It is expected that there will be at least one further transfer in calendar 2020 with a minimum consideration of £6.5 million.

The Group is also pleased to announce several recent utility contract wins by Dunamis, the Group's electrical design and build business. These include:

· As detailed in the Company's interim results, two contracts won with a combined value of £3.2m have been secured, to install new high voltage electrical infrastructure for two 50MW gas peaking plants, connecting them to the 132kV network in North East England

· A £1.9m contract to design and build both the high voltage electrical infrastructure and gas infrastructure for a new electrical generation site in the South East of England

· A £1.8m contract to install new electrical infrastructure to service more than 1,300 properties as part of a regeneration scheme in the South East for a major housing developer

· £1.7m, across two contracts, to design and build the high voltage electrical infrastructure for two new solar farms in East Anglia

· A £0.3m contract to design and install new electrical infrastructure to power a new mixed use development in the South East of England

The Board confirms that it expects trading for the year ending 31 March 2020 to be in line with expectations and for further profitable growth next year, underpinned by ongoing contract wins.

Daren Harris, Fulcrum's CEO, commented:

"I am pleased to announce that the key conditions in relation to the sale of our domestic gas assets to ESP have now been satisfied. The sale will significantly strengthen the Group's balance sheet and it supports our future strategic growth ambitions. Our new relationship with ESP is also progressing well and is already helping to enhance the Group's capabilities and service offering in our core design and build markets

The electrical capabilities of Dunamis has enabled the Group to tender on and contract win opportunities previously unachievable to the business, and we are delighted to announce that we have secured these large and significant electrical and dual fuel contracts. This strong succession of significant orders highlights immediate potential in the electrical market following a period of political and economic uncertainty. The Board is confident that these wins, coupled with recent market developments such as the decarbonisation of energy, also demonstrate the significant, long-term level of opportunity available to us in the electrical infrastructure market."

MAR

The information contained within the announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). Upon the publication of this announcement via Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

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

[phone] [phone] [phone] [phone]

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/

 

END

 

 

MSCJJMBTMTBMTBM