Tuesday, December 14, 2010

News: Fulcrum confident of turnaround


Rotherham based energy solutions company, Fulcrum, has releasesed its interim results for the ten month period to 30 September 2010.

In July, Marwyn Capital acquired Fulcrum Group Holdings Limited, an independent gas transporter and provider of unregulated gas connection services from National Grid plc for a nominal consideration of £10. The group also raised approximately £11m through a share issue to fund the takeover, provide working capital and finance the proposed turnaround strategy.

The reverse takeover saw an experienced new management team brought in to turnaround loss-making operations and re-establish the business as a market leader.

Following completion, the management launched a series of initiatives aimed at improving the operational efficiency of the business, including a comprehensive appraisal of business processes, systems and contract profitability. The management also held a number of meetings with key suppliers and customers in order to reinforce existing relationships and develop new business opportunities.

Following a review of the group's design capabilities, a proposed reorganisation will see the design function, previously split between Edinburgh and Rotherham, housed entirely in Rotherham, enhancing process coherence within the team and rationalising the overhead base. In addition, management have proposed measures to reorganise the Rotherham office into a new structure, further enabling process efficiencies.

The group reported a loss after tax in the period of £4.1m and revenue in the period of £9.8m. Proforma revenue for the six months to 30 September 2010 was £18.4m and was ahead of management expectations, in part due to a focus on enhanced job delivery since completion.

John Spellman, CEO of AIM-listed Fulcrum, said: "I am extremely encouraged by the performance of the Fulcrum business. Since completion our new management team has been fully integrated into the business and we believe there are a large number of opportunities to improve process efficiency.

"We believe that there is considerable scope for developing revenues and have been positioning the business to capitalise on new business opportunities. I look forward to delivering the Fulcrum business back to profitability and further success."

Based on Greasborough Road, Fulcrum designs and project manages connections to gas pipelines for customers seeking either a new connection or the alteration or refurbishment of an existing connection.

Fulcrum website


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