Fulcrum Utility Services Ltd Domestic Asset Sale Update (0114H)
December 01 2020 - 1:00AM
UK Regulatory
TIDMFCRM
RNS Number : 0114H
Fulcrum Utility Services Ltd
01 December 2020
1 December 2020
FULCRUM UTILITY SERVICES LIMITED
("Fulcrum" or "the Group")
Domestic Asset Sale Update
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 second tranche of its domestic customer gas connection
assets to ESP on 30 November 2020, for a total consideration of
GBP4.8 million. Cash of GBP4.7 million was received on 30 November,
with the retention balance of GBP0.1 million expected to be
received on 31 May 2022. The total consideration and the cash
received are both slightly higher than announced on 2 November 2020
and further strengthens the Group's balance sheet and supports its
strategic growth ambitions.
In addition, the Group has received a further GBP0.4 million in
cash in respect of the first 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, as communicated on 2 November 2020.
The total gross consideration receivable by Fulcrum is expected
to be c.GBP49 million. GBP22 million has been received to-date,
leaving approximately GBP27 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 GBP4 million over the remaining term of the contract.
Daren Harris, CEO, said:
"I am very pleased to confirm the successful completion of the
second tranche of the asset sale to ESP. The current and future
proceeds from the sale support our strategic growth ambitions and
provide us with additional financial strength to capitalise on the
significant and long-term opportunities that a net-zero future
present to the Group."
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
Notes to Editors:
Fulcrum is a multi-utility infrastructure and services provider.
The Group operates nationally with its head office in Sheffield, UK
and its main business is the design, build, ownership and
maintenance of energy connections and their related utility
infrastructure. The Group's offering also extends to smart meter
ownership and exchange programmes, and the selective ownership and
maintenance of utility networks and infrastructure.
https://investors.fulcrum.co.uk/
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END
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