Fulcrum, the Sheffield-based independent energy and multi-utilities service provider, has announced its first operating profit, following a major restructuring.
The company has reported a profit before tax of £0.6m in its annual results for the year ending March 31 2015, which it said reflected a successful turnaround and business transition.
The company has a “solid order book” and has identified a sales pipeline to build upon its customer base of 1,200 UK clients.
Fulcrum, which designs and delivers gas, electricity and water pipelines and connections, has been through a programme of restructuring in the last 18 months, which is aimed at reducing its fixed cost base and overheads from £17m to £11m.
During the last financial year, the company launched a directly managed delivery model as part of its strategic growth strategy. Under this new model, Fulcrum manages all elements of its utilities projects across England and Wales, from initial consultations through to project completion.
As a result of this restructuring, the business has doubled the size of its workforce to more than 200 people. The expanded workforce has been supported by investments in a fleet of 30 new branded vehicles and mobile technology.
During early 2015 Fulcrum secured a number of significant contracts including an agreement to install gas, water and electricity connections at a new mixed-used development in Wales.
Fulcrum also confirmed a one-year extension to its framework contract for British Gas Business, across England, Wales and Scotland, to November 2015 with an option for an extension.
Martin Donnachie, the chief executive said: “Fulcrum has delivered its first ever operating profit, a significant achievement, which reflects the management team’s successful turnaround and transition of the business. With our established customer base, trusted delivery and anticipated upturn in construction activity, we have a robust platform from which to leverage sales growth. Our targeted growth strategy is focused on winning major projects, enhancing key account relationships through improved levels of service and increasing penetration in the housing market. We will build our multi-utility capability and will have the first in-house dual fuel teams fully operational in 2015/16.”
Phil Holder, the chairman of Fulcrum, said: “Fulcrum has made excellent progress this year. We have repositioned the business to provide a robust and strong platform for growth.”