‘Disappointing’ results at utility services group as market turbulence takes its toll
Utility services provider, Fulcrum, reports its unaudited interim results for the six months ended 30 September 2022 have been dented by difficult economic conditions which have eroded its sales margins.
Revenues for the six months to 30 September 2022 fell by 16% on the previous year to £23.9m (H1 2022: £28.6m) with the business making a pre-tax loss of £20.3m (H1 2022: £1.3m pre tax loss).
Sheffield-headquartered Fulcrum also recorded an adjusted EBITDA loss of £3.3m (H1 2022: adjusted EBITDA of £1m.
Jennifer Babington, chair, said: “The Board and I are disappointed in these results but remain confident that the business is taking the necessary actions to turn the Group’s performance around.
“This is a challenging task, taking longer than anticipated, as improvements are being implemented alongside turbulent and difficult economic conditions.
“Despite these challenges, the medium to long-term growth opportunities for the Group remain clear and are underpinned by strong market drivers and government stimulus.
“We are also very pleased to be supported by our major shareholders as we move the business forward.”
The group’s woes during this period were compounded by a cyber security incident, which impaired managerial and system information, and the ability to fully invoice customers, for up to three weeks.
Fulcrum warns its legacy operational issues have been deeper and more longstanding than anticipated.
It explains this, together with challenges with historical projects and the “unprecedented” cost rises impacting much of its supply chain, has weighed heavily on the group’s performance.
As previously reported, the business has struck an agreement for funding of up to £6m via a convertible loan. It has entered into this facility agreement with Bayford & Co Ltd and funds managed by the Harwood Capital Management Limited Group.
Fulcrum adds that despite the tough market conditions, it has still managed to win some major utility contracts including a £4.1m deal to design and deliver the high voltage electrical infrastructure which will power a new 158-acre solar farm and battery storage facility.
It has also been hired for a £2m multi-utility infrastructure project to power a leisure resort in the south of England for a leading brand of family resorts and a £2m contract to deliver high voltage electrical infrastructure which will power a new Battery Energy Storage System in northern England.
