FULCRUM UTILITY SERVICES LIMITED
(“Fulcrum” or “the Group”)
Domestic Asset Sale Update
Further to its initial announcement on 23 December 2019, Fulcrum announces an update on the sale of its domestic customer gas connection assets and associated meters to E.S. Pipelines Limited (“ESP”) .
The Group is pleased to confirm the completion of the transfer of the third tranche of its domestic customer gas connection assets to ESP on 1 June 2021, for a total consideration of £3.8 million. Cash of £3.7 million will be received on 1 June 2021, with the retention balance of £0.1 million expected to be received on 31 May 2022.
The cash received strengthens the Group's balance sheet and supports its strategy and growth ambitions.
In addition, the Group has received a further £0.1 million in cash in respect of the first and second tranche of assets transferred under the ESP asset sale. This additional payment is a result of the Group achieving the first enhanced payment milestone under the asset sale agreement.
The total gross consideration receivable by Fulcrum is expected to be c.£49 million. £25.8 million has been received to-date, leaving approximately £23.2 million to be received, with the majority expected to be collected over the next two to three years.
The arrangement with ESP also includes further milestone targets which, if achieved, would trigger additional enhanced payments of up to £3.9 million over the remaining term of the contract.
Terry Dugdale, CEO, said:
“We are pleased to report another successfully completed tranche in the asset sale to ESP. The proceeds from this third tranche, and the future proceeds from the sale, provide the Group with additional financial strength that supports the continued strengthening of the business and the execution of our strategy and growth plans.”