News: Fulcrum turnaround continues

Fulcrum Utility Services Limited, the Rotherham based energy solutions company, has announced its preliminary results for the period since it was created in a takeover in July 2010.

Fulcrum posted a loss before tax over a 16 month period of £11.8m with revenues of £28.4m. On a proforma basis revenue was £36.1m, an increase of £2.4 million. The board stated that this performance was broadly in line with their expectations.

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.

A restructuring saw the company's Edinburgh office close and the Rotherham facility on Greasborugh Road become the headquarters. The rationalisation of the Rotherham head office will culminate in moving to smaller premises over the summer months.

John Spellman, CEO of Fulcrum, said: "The 2011 financial year has been one of huge transformation for the Fulcrum group. We acquired Fulcrum in July 2010 as a business with great potential but burdened by an inefficient cost base and operating model.

"Our plans for delivering a turnaround strategy centred on the appointment of a new senior management team, improved operational efficiency and growth in market share. Against this backdrop I am extremely encouraged by the performance of the business since acquisition.

"Our new management team has been fully integrated into the business and significant progress has already been made in reducing operating costs, growing revenues and improving customer service levels. I would like to thank all of our staff for their continued commitment in what has been a very challenging year and I look forward to delivering Fulcrum back to profitability and future success."

Fulcrum website

Images: fulcrum.co.uk