Infrastructure group issues profit warning as turnaround plans short-circuit

Energy infrastructure group Fulcrum Utility Services has warned it expects to lose £6m in the current financial year as cost increases and historic problems have short-circuited its turnaround plans.

A cyber-security breach earlier last month prevented the group from being able “to fully invoice customers for up to three weeks”.

It said it is in discussions with its substantial shareholders “to ensure that the group remains adequately funded”.

Fulcrum’s share price was down 35% in early trading today, continuing a long downward trend. Its shares have been under pressure for a while and Friday’s closing share price of 5.8p was already more than 80% lower than at the start of 2021.

Shareholders were reacting to a statement from Fulcrum this morning that revealed it expects to report an adjusted EBITDA loss of approximately £3.0m for the six months to September. Revenues will be down 16% to £24m.

It is now forecasting full-year losses of £6.0m, as measured by adjusted EBITDA, with annual revenues 20% down at £49.0m.

Antony Collins, who has been chief executive since January, said: “Clearly the board and I are disappointed in these results but I am confident that the steps needed to turn Fulcrum around are well underway.

“I always knew the task of turning Fulcrum around would be a hard one and the challenges that the group has faced are much deeper and wider spread than anyone previously anticipated.

“However, I believe the major issues have now been identified and measures and ameliorations put in place to improve performance.”

Sheffield-based Fulcrum provides EV charging, smart meters and a range of infrastructure products through its four group companies Fulcrum, Dunamis, CDS, and Maintech Power.

Collins believes Fulcrum can still be well-positioned to profit from net-zero investments.

He added: “The group’s medium to long-term growth continues to be underpinned by strong market drivers and government stimulus.

“With the executive team identifying improvement opportunities and ensuring optimal performance I believe, that Fulcrum will be well positioned to benefit from the UK’s transition to a low carbon economy and a net-zero future.”

Click here to sign up to receive our new South West business news...
Close