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Fulcrum wins £3.95mln distillery pipeline deal

It will connect four of Scotland’s major distilleries to the country's main gas network

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Fulcrum's completed a 16 mile pipeline connecting four other distilleries in the region last year.

Utility service provider Fulcrum (LON:FCRM) has won a £3.95mln project to connect four of Scotland’s major distilleries to its main gas network.

The contract, funded by a partnership of drinks giant Diageo (LON:DGE), Chivas Brothers and Ian MacLeod Distillers, is for a 13km pipeline which will deliver 4,700 cubic metres of gas every hour.

Martin Donnachie, chief executive, said: "We are delighted to be further endorsing our relationship with Scotland's historic whisky industry by the award of this second prestigious contract.”

The deal is worth more than 10% of the company’s revenue for the year to March 31 2015.

Fulcrum said it will allow the distilleries, all based in the northeast of Scotland, to lower their carbon footprint, although gas will only be supplied from April 1 until September 30 each year due constraints of the local gas network.

Keith Miller, Diageo’s distilling and maturation director, said: “The new pipeline will improve the sustainability of our distilleries and it demonstrates again the contribution our industry makes to the local economy.”

The contract award follows on from Fulcrum's completion of a 16 mile pipeline connecting four other distilleries in the region last year.

Cenkos Securities said Fulcrum “continues to deliver”, adding that today’s announcement “should be seen as another positive step for the company.”

Since the start of the year, Fulcrum’s shares have been on a strong run, more than doubling and shares in Fulcrum gained 5.4% to 19p today.

Quick facts: Fulcrum Utility Services Ltd

Price: 27 GBX

AIM:FCRM
Market: AIM
Market Cap: £59.97 m
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