Utility group set to delist as it fights to claw back profitability
Sheffield-based Fulcrum Utility Services has today confirmed its Board wants to cancel the company’s admission to trading on AIM to help slash costs, as the business publishes its final results for the year ended 31 March 2023.
The group says its revenue is down 18% to £50.6m (2022: £61.8m) with a loss before tax of £25.7m (2022: £14.2m loss).
As previously reported, in April the business has already confirmed it is pulling out of the smart metering market, warning that smart meters are no longer attractive due to increased volatility in the UK energy market.
Lindsay Austin, interim chief executive officer, today said: “Our FY23 results reflect the legacy issues and the difficult conditions the group has operated in, however we are now in a stronger position and laser focused on our path back to profitability as we continue to make improvements at pace.
“I believe the opportunities for the group and its Fulcrum, Dunamis and Maintech Power businesses are significant and reinforced by strong market fundamentals.
“We are confident in the group’s potential and its return to success.”
Fulcrum says delisting will support its return to profitability by removing significant ongoing costs associated with the company’s shares being admitted to trading on AIM. It adds that cancellation is also expected help to simplify the business and improve its agility.
The group notes its major shareholders have agreed to extend the term of the business’s existing Facility Agreement from 1 November 2023 to 31 December 2024. All other terms and conditions of the Facility Agreement are unchanged.
It explains The Facility Extension will ensure the group continues to have adequate working capital and is expected to provide the group with the funding required for the trading year ahead.
Jennifer Babington, Fulcrum non-executive chair, said: “The challenges faced by the business during the financial year ending 31 March 2023 are reflected in our full year results.
“However, encouragingly, the group’s full year performance was in line with the expectations set out in our Trading Update, published on 24 October 2022.
“Turning the group’s performance around has been a challenging task and is ongoing, but we are making good progress, at pace. The Board is pleased that the group is on a path back to profitability.”
