Fulcrum Utility Services looks to new CEO to drive revenues forward
FULCRUM Utility Services has said that the arrival of a new interim chief executive should drive revenue growth following a slower than planned performance over the last 12 months.
The Sheffield-based energy services business – which built and managed the systems to deliver gas to the London 2012 Olympic flame – saw Martin Donnachie join earlier this month to replace John Spellman.
It said that revenues in the year to March 31 were down 5% to £38.8m from £41m a year earlier while it made a pre-tax loss of £1m compared to £5.6m previously.
The business said it improved gross margin from 34% to 39% and adminstrative expenses were reduced by 19% to £15.9m.
Chairman Phil Holder said that revenue had been flat in the second half and during the year there had been a £3.4m improvement in EBITDA performance from a £2.1m loss to £1.3m profit. Fulcrum also agreed a £4m asset backed financing facility with Lloyds TSB.
Mr Donnachie will serve as interim CEO for a minimum of six months whilst Fulcrum seeks the appointment of a full time chief executive to lead the business in the long term.
He said: “In the short period since I arrived I have found a business with significant potential and some excellent people. It is clear that Fulcrum is a well-respected brand in the market and it is important that this is reinforced by building an efficient business capable of delivering first class customer service.”
Chairman Phil Holder, said: “The performance of Fulcrum over the past year has been slower than anticipated against a backdrop of a challenging construction sector and generally constrained demand for utility connections. This is reflected in a disappointing sales performance with the progress of the business having been considerably slower than the board had hoped. However the company has achieved significant progress in delivering a robust gross profit margin and further efficiencies in the operating cost base.
“Martin Donnachie joins the business at a time when the focus must now be on driving revenue growth and his track record of building successful teams and putting customer service at the heart of the business gives me confidence in the future.”
Fulcrum provides gas connection services to residential, commercial and industrial markets ranging from single properties to large developments.
It constructed and managed the infrastructure to deliver gas to the London 2012 Olympic flame, the Olympic Park, athletes’ village and the nearby Westfield Shopping Centre.
Last year it also secured a £7.6m contract with Chivas Brothers and Angus Dundee Distillers to provide gas infrastructure to four distilleries in the Highlands of Scotland.
