INCREASED PROFITS, GENERATED CASH AND DELIVERED ON PROGRESSIVE DIVIDEND POLICY
Financial highlights
· Revenue up by 4.4% to £37.7 million (2016 restated: £36.1 million)*
· Underlying EBITDA of £7.3 million (2016: £5.3 million)
· Profit before tax of £6.5 million (2016: £4.3 million)
· Gross margin increased by 4.8% to 40.8% (2016: 36.0%)
· Net cash inflows before financing activities of £5.3 million (2016: £3.7 million), net of investment of £2.5 million in pipeline assets
· Cash of £12.6 million as at 31 March 2017 (2016: £8.3 million)
· Revolving credit facility of £4.0 million remains undrawn
Dividend
· The Board is recommending a final dividend for FY2017 of 1.3p per share, making the total dividend 1.9p for FY2017 (2016: 0.9p). This reflects the Board's ongoing confidence in the Group's ability to generate cash and its future prospects.
Operational highlights
· Strong growth in the order book, up 39% since March 2016, to £30.3 million (2016: £21.8 million)
· Organic growth:
o Secured a £4.2 million project to install a new gas pipeline to a food manufacturing plant
o Won and delivered an array of new gas, electricity, multi-utility and new housing contracts
o Grew the recurring pipeline transportation income to an annualised £1.6 million
o Secured £2.8 million of external gas assets to be purchased from utility infrastructure providers
· Full Meter Asset Manager (MAM) accreditation gained to adopt, run and operate all classes of utility meters
· On track to obtain the electrical asset licence by the end of 2017
· Further operational efficiencies implemented, helping to increase the gross margin
· Teams further upskilled to deliver multi-utility work
*FY2016 revenue has been restated to reflect a recent change to the Group's accounting policies, the effect of which has increased revenue in FY2016 with an offsetting adjustment within cost of sales. The absolute gross profit, profit for the year, underlying EBITDA or net assets as at 31 March 2016 are not affected by this change. Further detail is provided in Note 1 to the financial statements.
Martin Donnachie, CEO of Fulcrum, said:
“I am delighted to announce another set of strong results. Our integrated business model of providing multi-utility infrastructure services and growing our asset base continues to deliver profitable growth. The business has an established and growing market leading position. We will continue to focus on sales growth, improving customer service and using the cash generated to increase the asset base and the recurring transportation income, all whilst maintaining and improving operational disciplines.
We continue to move forward at pace with confidence for the future as we remain on course to deliver incremental value to all our stakeholders by being the UK's most trusted utility services partner. We are confident that the outlook remains positive and that the Group continues to be well positioned to make sustained progress in 2018.”