Asset sale supports firm’s growth ambitions
Fulcrum, a multi-utility infrastructure and services provider, has published an update on the previously reported sale of its domestic customer gas connection assets and associated meters to ES Pipelines Limited.
The Sheffield-based Group has now confirmed the completion of the transfer of the second tranche of its domestic customer gas connection assets to ESP on 30 November 2020, for a total consideration of £4.8m.
£4.7m worth of cash was received on 30 November, with the retention balance of £0.1m expected to be received on 31 May 2022
Fulcrum says the total consideration and the cash received are both slightly higher than announced on 2 November 2020, and further strengthens its balance sheet and supports its strategic growth ambitions.
In addition, the Group has received a further £0.4m in cash in respect of the first tranche of assets transferred under the ESP asset sale.
This additional payment is a result of the Group achieving the first enhanced payment milestone under the asset sale agreement, as stated on 2 November 2020.
The total gross consideration receivable by Fulcrum is expected to be c.£49m. £22m has been received to-date, leaving approximately £27m to be received, with the majority expected to be collected over the next two to three years.
Fulcrum adds that its deal with ESP also includes further milestone targets which, if achieved, would trigger additional enhanced payments of up to £4m over the remaining term of the contract.
Daren Harris, CEO, said: “I am very pleased to confirm the successful completion of the second tranche of the asset sale to ESP.
“The current and future proceeds from the sale support our strategic growth ambitions and provide us with additional financial strength to capitalise on the significant and long-term opportunities that a net-zero future present to the Group.”
