Profits come through the pipeline at utilities group

Infrastructure group Fulcrum has recorded another big increase in pre-tax profits as significant contract wins have come through its pipeline to have an impact on their financial performance.

The Sheffield-based group made a small pre-tax profit of £600,000 two years ago. Last year it achieved £4.3m, and has now increased that by more than half again, to £6.5m in the year to March.

The company, which unregulated utility connections and independent gas transportation services, now has a market value of nearly £100m – a 90% increase since its post-referendum dip 11 months ago.

“Our integrated business model of providing multi-utility infrastructure services and growing our asset base continues to deliver profitable growth,” said Martin Donnachie, chief executive of Fulcrum.

“We are confident that the outlook remains positive and that the company continues to be well positioned to make sustained progress in 2018.”

Revenues increased 4.4% to £37.7m during the year, with its operational highlights including a £4.2m project to install a gas pipeline to a food manufacturing plant in the South West and a £1.1m gas pipeline in the Scottish Highlands.

The company also saw growth through its ownership of gas, electricity and meter assets. It generated an annualised gas transportation income of £1.6m, up from £1.1m in 2016, while it has also reached agreement to acquire a further £2.8m of additional gas assets from external utility infrastructure providers.

Fulcrum’s board has recommended a final dividend of 1.3p per share, making the total dividend 1.9p for 2017 – double the 2016 dividend.