Fulcrum Annual Results To Be In Line, Buys CDS Pipe Services (ALLISS)

28th Mar 2018 13:20

LONDON (Alliance News) - Fulcrum Utility Services Ltd said on Wednesday its full-year results are expected to be in line with its forecasts, and also it has bought CDS Pipe Services Ltd in a cash-and-share deal.

Ahead of its financial year-end on Saturday, the company said it has performed "strongly" over the period, with its results to be line with management expectations.

As at February 28, the company's combined order book had increased by 26% to GBP38.3 million, from GBP30.3 million at March 31, 2017.

This increase highlights the continued progress and delivery in the company's growth strategy during the year, Fulcrum said.

In addition, the company said it has acquired CDS Pipe Services Ltd, a utility business that provides a range of specialised engineering services, for a total consideration of GBP1.4 million on a debt free, cash free basis.

Fulcrum said it has previously subcontracted such specialist elements of its projects to CDS, and this acquisition will bring these engineering capabilities in-house to further strengthen the company's direct delivery capabilities.

The consideration will be satisfied through a mix of cash and 671,142 new ordinary shares in Fulcrum issued to the sellers of CDS.

The consideration shares will be subject to lock in restrictions for a period of three years following their admission to trading on AIM, with one third of the consideration shares permitted to be sold via orderly market arrangements after each of three anniversaries following admission.

Shares in Fulcrum were up 1.8% at 60.90 pence on Wednesday.

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