Profits and revenue down at listed utility company
Sheffield-based Fulcrum Utility Services has seen its pre-tax profits drop to £1.3m (2019: £6m) and its revenue fall 5.8% to £46.1m (2019: £48.9m).
The business, which has today published its final results for the year ended 31 March 2020, has also recorded adjusted EBITDA from continuing operations of £4.5m (2019: £10.9m), with net cash of £6m as at 31 March 2020 (2019: £3.8m).
Fulcrum says despite the impact of COVID-19, trading in the new financial year has seen continual improvement month on month and is expected to return to pre-COVID-19 levels in the second quarter of FY21.
It highlights sustained growth in the Group order book, up 9% since March 2019 to £66.2m (2019: £60.5m), with growth in its housing order book, up 24% to £25m.
The firm attributes its drop in revenue to 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 customers’ sites.
But it notes the reduction in revenue was minimised, as its workers continued to operate wherever possible during the pandemic lockdown period, while following stringent safety protocols.
Fulcrum has become debt free as a result of the sale of its domestic asset portfolio and order book for a gross consideration of £48m. The first tranche of assets was sold on 31 March 2020 for £17.9m.
Daren Harris, chief executive officer, said: “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.”
