Fulcrum, the UK’s leading independent multi-utility infrastructure and services provider, has reported strong performance over the past year, which has included growing its ownership and management of utility infrastructure.
In a pre-close trading update for the 12 months to 31 March, the company’s order book had increased by £7.2m to £29m – an increase of 33% on the previous year.
As part of Fulcrum’s growth strategy, the company is also expanding its asset management portfolio. This includes increasing agreements to adopt external gas assets from utility infrastructure providers, which do not have an independent gas transportation licence that is required to own gas pipelines.
Fulcrum plans to invest £2.8m in acquiring infrastructure assets, which will generate income from the transportation of gas. This will build upon the 300km of gas pipeline with 13,000 supply points the company currently owns and manages.
In addition, plans are on track to obtain the independent distribution network operator (IDNO) licence by the end of the calendar year to enable ownership of electrical assets.
The company has also made positive progress with its gas meter asset operation, having achieved 2,000 meter adoptions in the first six months following the company achieving the Full Meter Asset Management Accreditation.
As a Meter Asset Manager (MAM), Fulcrum is responsible for elements including the design, installation, maintenance and removal of the meters to insure they perform in accordance with industry standards. As the asset manager, Fulcrum receives a rental income for each meter from the energy supplier.
As a result of becoming a MAM, Fulcrum is one of only small number of companies that can own both pipelines and meters, which enables the business to provide a more comprehensive asset rental service to the gas industry.
Martin Donnachie, chief executive of Fulcrum, said: “We have achieved our aim of growing the sales order book - 2016/17 has seen continued expansion of both our infrastructure services and asset ownership businesses.
“The business has an established and growing market leading position. We will continue to focus on improving customer service, building our order book and using the cash generated to increase the asset base and the recurring transportation income, all whilst maintaining and improving operational disciplines. We remain confident in our outlook for the business."