Infrastructure services firm sells gas connection assets for £16.8m

An infrastructure services company has announced that it has sold its gas connection assets for £16.8m.

Fulcrum Utility Services, an independent multi-utility infrastructure and services provider based in Yorkshire, sold its domestic customer gas connection assets and order book and associated meters to E.S. Pipelines.

With the addition of the sale proceeds, the company’s profit is expected to be £33m for this financial year.

Fulcrum said: “The group has used the proceeds from the sale to repay its existing debt of £11m in full, leaving the business debt free, other than operating lease obligations and with net cash balances of £5.6m at close of business on 31 March 2020.

“The group has also welcomed and is accessing available government support measures, including the UK Government’s Coronavirus Job Retention Scheme for a significant proportion of its workforce.

“This should ensure that employees placed on the scheme continue to receive a proportion of their pay during a period of furlough.

“We have also implemented measures to defer 20 per cent of the pay of employees who have not been furloughed, including the Board and executive management team, as a temporary cash conservation measure.”