Utility infrastructure provider Fulcrum has moved into profit for the first time.
The Sheffield based business, which has been through a “streamlining operation”, reported a £329,000 underlying operating profit in its half year results. Fulcrum chief executive Martin Donnachie said: “The six months to September 30 2014 has seen Fulcrum transition to a profitable business model that offers an enhanced proposition for our customers.
“The actions taken during the period represent a significant stage in Fulcrum’s journey to become the UK’s most trusted utilities service provider. Implementing our new operating model provides us with a unique streamlined end–to-end nationwide service and customers, such as British Gas, have welcomed the clear ownership and improved communication.
“Our cost base is now in a position where we can produce consistent profits at the levels of turnover we are currently delivering. The remainder of 2014 will see the conclusion of the transition phase of Fulcrum’s development and the focus will move to driving growth in 2015.”
In the period to September 30 2014 the company, which employs 118 people, has delivered cost savings of £1.5m and implemented a new operating model, which provides customers with a single point of contact from initial enquiry to the point of delivery through one brand. Revenue over the six months was £16.8m compared with £19.5m in the same period the year before. New contracts won by Fulcrum during the period include the installation of gas, water and electricity connections to a new mixed use development in Llanelli, Wales.
Mr Donnachie said: “This could not have happened without the hard work and commitment of our staff. It has been a period of radical change, but we are now in a much stronger position to expand and enhance the business.”
The company said it will now focus on improving its sales performance and driving “high value” opportunities.
Mr Donnachie added: “The order book remains strong, quality of earnings has improved and new contracts have been won. Looking ahead, investment is planned to bring new people into the sales team. Along with Fulcrum’s ability to deliver technical engineering, design, project management, consultancy and audit services across gas and multi-utility connections, we are confident the future will produce a wealth of opportunities.”