Trading update
The Company has performed strongly over the six-month period ending 30 September 2017. The successful execution of the Company's strategy gives the Board confidence that results will be in line with market forecasts for the financial year ending 31 March 2018. The Company will announce its half-year results on Tuesday 5 December 2017.
Operational highlights
As at 31 August 2017, the Company's order book had increased by 11% to £33.7m, up from £30.3m as at 31 March 2017. To support the increase in multi-utility projects being tendered and won, the Company continues to strengthen its in-house capabilities through investment in additional multi-skilled direct delivery teams and technical designers.
Notable contract wins in H1 include:
· A £2.4m project to deliver new gas infrastructure to three Short Term Operating Reserve (STOR) sites across the UK. These sites will convert gas to electricity at times of peak demand.
· A £0.4m project to convert a Scottish distillery from its existing fuel source to natural gas, with the installation of a 1.8km gas pipeline.
· A £0.2m multi-utility contract to deliver gas, water and electricity infrastructure to a new 61 plot housing development in the West Midlands.
· A £0.2m dual fuel contract to install gas and electricity connections to 101 new homes as part of a new housing development in the South East.
In addition to these large contract wins, the Company continues to secure a core portfolio of projects up to £50,000 in revenue.
In line with its strategy, the Company continues to grow its gas asset estate and the associated annuity revenue streams by adopting the assets it constructs, alongside assets from other Utility Infrastructure Providers (UIPs). In particular, there has been encouraging growth in the gas assets secured from UIPs, with the committed external capital spend increasing from £2.8m as at 31 March 2017 to £6.4m as at 31 August 2017. The Company remains on track to obtain an Independent Distribution Network Operator (IDNO) licence by the end of 2017, which will enable the adoption and ownership of electricity assets from early 2018. This IDNO licence is an important strategic step for Fulcrum, allowing it to broaden and increase its long-term income stream by adopting the electricity assets constructed both in-house and by other contractors.
Dividend
As previously communicated, the Board will propose a resolution at today's Annual General Meeting for the payment of a final dividend of 1.3 pence per ordinary share, taking the total dividend paid for the year to 1.9 pence for the year (2016: 0.9 pence). If the resolution is passed, the final dividend will be paid on 27 October 2017 to shareholders on the register on 29 September 2017, with an ex-dividend date of 28 September 2017.
Martin Harrison, Chief Executive Officer, stated: “The successful execution of the Company's strategy continues to place Fulcrum in a strong financial and operational position. Our commitment to customer service excellence, the enhancement of our in-house multi-utility capabilities and sustained focus on construction and asset growth, provide a robust foundation to build upon the performance achieved in the first half of the year. We therefore look with confidence to the full year 2018 and beyond.”