Fulcrum, the Sheffield-based UK multi-utility infrastructure and services provider, is executing a new strategy to support the UK’s transition to a net-zero economy, which will deliver growth for the business.
The company is building upon a strong balance sheet and a growth in its order book to focus its activity on key sectors, notably the housing and Industrial & Commercial (I&C) markets and areas such as Smart Metering and Electric Vehicle charging infrastructure.
Following the publishing of its financial results for the year ending 31 March 2020, Fulcrum has reported sustained growth in its order book, up 9% since March 2019 to £66.2m. This includes growth in its housing sector order book, which is up by 24% to £25m and in its smart metering operations where it has achieved order book growth of 22%.
Brexit uncertainty at the beginning of the year and the impact of the COVID-19 pandemic at the end of its latest financial year, which included the start of lockdown and the pausing on activity on a large number of its customers’ site, led to a 5.8% fall in revenue to £46.1m from £48.9m the previous year.
The reduction in revenue was minimised as Fulcrum continued to operate wherever possible during the pandemic lockdown period, implementing stringent safety protocols to ensure its workforce and the public remained safe while it undertook essential installation, maintenance, and repair works.
Subsequently, the new financial year has seen continual improvement month-on-month and is expected to return to the pre-pandemic levels in Quarter 2 of its 2021 financial year.
This is supported by Fulcrum becoming debt free as a result of the sale of its domestic asset portfolio and order book for a gross consideration of £48m, which delivered a strong balance sheet and will generate surplus cash for the future. The first tranche of assets was sold on 31 March 2020 for a gross consideration of £17.9 million.
Further growth will be supported by a new strategic relationship with E.S Pipelines Ltd, which increases the opportunity to compete for larger housing and I&C schemes, including Electric Vehicle charging infrastructure.
Daren Harris, Fulcrum Chief Executive Officer said:
Our new vision is to play an essential part in the UK’s net-zero and smart energy revolution and 2020 has been a year of repositioning to focus the business on its strategic aim of capitalising on the UK’s transition to a net-zero economy. Fulcrum already has established market positions and a strong service reputation across strategically important markets and has the critical capabilities needed to execute its strategy.
Although 2020 presented short term market challenges, there is a substantial long-term opportunity for the Group to significantly grow its revenues across markets that have attractive long-term drivers given the UK’s net-zero and smart energy revolution.
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