Shortly after recording its maiden pre-tax profit in 2015, Fulcrum Utility Services (FCRM) implemented a direct delivery business model, which has proved to be a corker of a decision. The 2016 financial year, described by chief executive Martin Donnachie as "the best ever", has seen underlying cash profit more than double to £5.3m and operating cash flow increase from £0.8m to £3.8m.
Sales growth returned, with all four group sectors performing well. The biggest revenue contribution - 41 per cent - came from the major projects division, including a £4m project to link four Scottish distilleries to the main gas network, which was completed one month ahead of schedule.
To replace revenue gained from this one-off project next year, Fulcrum has a strong pipeline of smaller projects, including a £1m contract to install 4km of high voltage electricity into a new hospital. The newly set-up housing division has also secured several multi-utility contracts and the group continues to expand its portfolio of pipeline assets.
Off the back of these results, broker Cenkos has upgraded 2017 forecasts and now expects pre-tax profits of £5.5m giving EPS of 3.1p, compared to £4.6m and 2.6p in FY2016.
FULCRUM UTILITY SERVICES (FCRM) | ||||
|---|---|---|---|---|
| ORD PRICE: | 41.1p | MARKET VALUE: | £64m | |
| TOUCH: | 41-41.3p | 12-MONTHHIGH: | 46p | LOW: 14p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 3.7p* | NET CASH: | £8.3m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 41.0 | -5.6 | -3.7 | nil |
| 2013 | 38.8 | -1.0 | -0.3 | nil |
| 2014 | 38.3 | -4.5 | -2.9 | nil |
| 2015 | 33.7 | 0.6 | 1.8 | 0.4 |
| 2016 | 34.5 | 4.3 | 3.1 | 0.9 |
| % change | +2 | +603 | +72 | +125 |
Ex-div: 29 Sep Payment: 28 Oct *Includes intangible assets of £2.6m, or 1.6p a share | ||||
