Job losses enable Fulcrum to announce record profits

UTILITY infrastructure provider Fulcrum has hailed the success of its turnaround strategy after reporting a record operating profit.

The Sheffield-based business generated half-year profits of £329,000 before tax and exceptionals, which it says is evidence it can now “produce consistent profits”. Revenues were down slightly in the period, by £2.7m to £16.8m, but margins nudged higher.

Fulcrum’s chief executive Martin Donnachie said: “The six months to 30 September 2014 has seen Fulcrum transition to a profitable business model that offers an enhanced proposition for our customers.

 

“The actions taken during the period represent a significant stage in Fulcrum’s journey to become the UK’s most trusted utilities service provider. Implementing our new operating model provides us with a unique streamlined end–to-end nationwide service and customers, such as British Gas, have welcomed the clear ownership and improved communication.

 

“Our cost base is now in a position where we can produce consistent profits at the levels of turnover we are currently delivering. The remainder of 2014 will see the conclusion of the transition phase of Fulcrum’s development and the focus will move to driving growth in 2015.”

The company has reduced the number of people it employs directly from 179 to 118, which has contributed to cost savings of £1.5m. It has also changed its operating model, which provides customers with a single point of contact from initial enquiry to the point of delivery through one brand.

 

New contracts won by Fulcrum during the period include the £700,000 installation of gas, water and electricity connections to a new mixed use development in Llanelli, West Wales and the design and installation of two gas infrastructure projects worth more than £500,000 in Lambeth.

 

Mr Donnachie added: “The order book remains strong, quality of earnings has improved and new contracts have been won.

 

“Looking ahead, investment is planned to bring new people into the sales team. Along with Fulcrum’s ability to deliver technical engineering, design, project management, consultancy and audit services across gas and multi-utility connections, we are confident the future will produce a wealth of opportunities.”

 

“It has been a period of radical change, but we are now in a much stronger position to expand and enhance the business.”