Energy crisis and supply chain problems hit profits at utility services group

Sheffield-based utility services business, Fulcrum, has reported a rise in revenues of 31.2% to £61.8m (2021: £47.1m) in its final results for the year ended 31 March 2022.

The business also records a pre-tax loss of £14.2m (2021: £11.5m loss) and adjusted EBITDA of £0.5m (2021: £0.1m).

Fulcrum explains that its diverse business operations initially helped to insulate it from the energy crisis.

But it says the sustained turbulence in the energy market, coupled with wider market issues of supply chain pressure and cost inflation in materials and labour, along with exceptional costs, significantly affected its profitability in the final quarter of the year.

Antony Collins, chief executive officer, said: “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 Fulcrum can grow and be successful in several exciting and growing markets.

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

“The Group’s medium to long-term growth also remains underpinned by strong market drivers and Government stimulus.”

Fulcrum says it has completed the first stage of its asset acquisition strategy to support the growth of the business’s operations across the utility infrastructure market.

It has acquired an Industrial & Commercial (I&C) gas meter asset portfolio for £600,000.

This latest portfolio joins the Group’s collection of owned utility infrastructure assets, which generate recurring income and provide attractive and predictable returns.

Fulcrum notes it is currently exploring other acquisition opportunities and is at varying stages of discussion and due diligence with several prospects.

Collins added: “The Group has refocused its attention on its core multi-utility contracting and asset ownership growth strategy.

“We believe 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.”