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Fulcrum Utility Services targets housing market

Fulcrum Utility services is hoping to make connections in housing
Fulcrum Utility Services targets housing market
Fulcrum is mapping out future in housing, power and water

Gas installer Fulcrum Utility Services (LON:FCRM) is targeting expansion as the recovering UK economy helped it to unveil its first profit and dividend.

Fulcrum, which fits gas connections for companies and utilities, expects to benefit from the housing market revival as home-builders seek to link up new estates to the grid.

It also is hoping to increase its fledgling electricity and water operation as well as its traditional gas markets, which currently make up about 90% of its business.

Chief executive Martin Donnachie told Proactive Investors: "The market is looking more favourable in terms of general economic activity. More housing will be built in the next year or two."

Fulcrum made a pre-tax profit of £600,000 in the year to March 31 against a loss of £4.5mln a year ago, although bottom-line revenue dropped to £33.7mln from £38.3mln beforehand on exceptional items last year. Excluding those, underlying revenue increased to £33.7mln from £32.6mln in 2014. 

The Sheffield-based group, which listed on AIM about five years ago, proposed a full-year maiden dividend of 0.4p per share.

Donnachie launched a restructuring on joining Fulcrum a couple of years ago and said that had borne fruit.

Fixed costs and overheads have fallen to £11mln from £17mln in the last two years and the company now has a 1,200-strong customer base.

It is creating teams to provide services across several utilities and expects to have the first of those up and running in 2015/16.

Donnachie said: "I think we've reached the point where we're now profitable, we've got a steady business and we can start unlocking future potential."

Shares rose 0.25p to 14.38p by 12:38 in London.









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