20th Sep 2019 13:37
(Alliance News) - Gas and electricity infrastructure firm Fulcrum Utility Services Ltd on Friday hiked its dividend as it reported a rise in full-year revenue in a belated set of results.
Pretax profit in the financial year ended March 31 fell by 13% to GBP6.0 million from GBP6.9 million. Fulcrum attributed this to amortisation costs rising to GBP1.4 million from GBP208,000 and a exceptional costs rising to GBP1.3 million from GBP823,000.
Administrative expenses, not including exceptional costs, increased by 36% to GBP11.9 million from GBP8.7 million.
Revenue rose by 20% to GBP48.9 million from GBP40.6 million, benefiting from full-year contributions from Dunamis and CDS, which Fulcrum acquired in February 2018 and March 2018, respectively.
The company upped its full-year dividend by 7.1% to 2.25 pence per share from 2.10p in financial 2018 after proposing a final payout of 1.50p.
Fulcrum explained that the delay in publishing its results was due to an "auditor needing to agree the accounting treatment for the adoption of IFRS15: Revenue from Contracts with Customers".
In the short-term, the softening UK construction market could present Fulcrum with challenges but the company said it is "encouraged by the incremental smart metering and cross-selling opportunities" in the gas and electricity market.
Chief Executive Martin Harrison said: "The group has established a positive reputation across its markets through a track record of reliable and responsive delivery, evidenced through our relationships with customers.
"Whilst we remain vigilant of the short-term impacts of economic and political uncertainty, and expect a softening of the infrastructure services market in the current financial year, our strategy to broaden our range of services, especially electric vehicle charging infrastructure and smart metering installations, will continue to provide long-term, sustainable growth opportunities."
Shares in Fulcrum were 6.7% higher at 25.35 pence each in London on Friday afternoon.
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