TIDMFCRM

RNS Number : 5290R

Fulcrum Utility Services Ltd

30 June 2020

30 June 2020

FULCRUM UTILITY SERVICES LIMITED

("Fulcrum" or the "Company")

Asset Sale Update

Fulcrum, the UK's market leading independent multi-utility infrastructure and services provider, is pleased to announce an increase in the cash consideration receivable for the sale of the first tranche of its domestic customer gas connection assets and associated meters, to E.S. Pipelines Limited (ESP).

As announced on 1 April 2020, the cash consideration for tranche one was initially estimated at GBP16.8 million (before related expenses) but has increased by GBP0.7 million to GBP17.5 million, as a result of:

   --      an increase in the annual Transportation Income (TI) generated by the assets sold; and 
   --      an increase in the number of associated meters transferred

The additional consideration for tranche one has been agreed with ESP and cash of GBP0.7 million was received by the Group today, 30 June 2020.

The increase in TI is a result of the annual Relative Price Control (RPC) adjustments implemented in January 2020, in line with Ofgem licence conditions. Under the annual RPC adjustment, TI can increase or decrease and over the previous five years has ranged between a plus 2% and minus 2% threshold. The increase in January 2020 was at the top end of this range.

The increase in the number of associated meters transferred relates to new meters added to the estate between the contract agreement and the completion of tranche one on 31 March 2020. The total cash consideration from metering assets will vary in the future as a result of new meter additions to the estate and meter removals under the smart meter exchange programme.

These adjustments will also apply to future tranches of the asset sale. Accordingly, the total gross consideration receivable by the Company is now estimated at GBP48 million in cash, an increase of GBP2 million from the previous estimate of GBP46 million.

Enquiries:

 
                                                        +44 (0)114 280 
                                                         4102 
Fulcrum Utility Services Limited 
 Daren Harris, Chief Executive Officer 
                                                         +44 (0)20 7397 
 Cenkos Securities plc (Nominated adviser and broker)    8900 
 Max Hartley (Nomad) / Michael Johnson (Sales) 
 
 N+1 Singer (Joint Corporate Broker)                     +44 (0)20 7496 
 Sandy Fraser / Rachel Hayes / Carlo Spingardi           3000 
 
 Camarco (Financial PR advisers) 
 Ginny Pulbrook / Tom Huddart                            +44(0)203 757 4992

Notes to Editors:

Fulcrum is a multi-utility infrastructure and services provider based in Sheffield, UK. The Company's primary business is the provision of utility infrastructure services to the residential, commercial and industrial markets throughout the mainland UK. These range from the design, installation or alteration of utility services for single site properties to large complex multi-site projects. Through its subsidiaries, Fulcrum Pipelines Limited and Fulcrum Electricity Assets Limited, Fulcrum is also licensed as an Independent Gas Transporter and Independent Distribution Network Operator, owning and operating gas and electrical assets that connect properties to the main UK gas and electricity networks. Fulcrum is also a meter asset manager, owning and operating meter assets across mainland UK.

http://www.fulcrum.co.uk/

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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