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August 13, 2022
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Losses widen for Sheffield utilities contractor

Losses widen for Sheffield utilities contractor

For the year ended 31st March 2022, Fulcrum Group made a pre-tax loss of £14.2m on revenue of £61.6m.

Revenue was up 31% on the previous year, bolstered by securing a succession of its largest ever contract wins. However, the pre-tax loss was also 23% up on the previous year. Fulcrum is also losing money at an operating level – down £13.7m last year and £11.2m the year before.

A new chief executive, chief operating officer and finance director were brought in at the beginning of 2022 to turn the business around.

This new team has completed the first stage of its asset acquisition strategy, acquiring an industrial & commercial (I&C) gas meter asset portfolio for £600,000.

In addition to designing and building utility infrastructure, Fulcrum also owns and maintains utility infrastructure assets, including gas and electricity networks. This latest portfolio joins the group’s inventory of owned utility infrastructure assets, which generate income and provide predictable returns.

It is now exploring other acquisition opportunities and is at varying stages of discussion and due diligence with several prospects.

Chief executive Antony Collins said: “The group has refocused its attention on its core multi-utility contracting and asset ownership growth strategy. We believe that there is a significant opportunity for Fulcrum to grow its multi-utility contracting operations across the housing and industrial & commercial, including electric vehicle connections, sectors.

“In addition, Fulcrum’s essential and niche capabilities position it well for future growth and this belief is underpinned by the long-term strategic tailwinds of the UK’s utility and energy infrastructure needs now, and for its net-zero future.

“Despite the significant challenges presented to the group this year, including the impact of the UK’s energy crisis and wider, very difficult trading conditions, I am confident that Fulcrum can grow and be successful in several exciting and growing markets.

“At the same time, our executive team is identifying improvement opportunities and ensuring optimal performance to deliver long-term, sustainable growth for the benefit of all shareholders.”

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