utility infrastructure firm Fulcrum has moved into profit for the first time, after cutting jobs as part of a “streamlining operation”.
The Sheffield-based business reported a £329,000 underlying operating profit in its half year results, compared with an operating loss of £700,000 the year before. The company, which includes Ecofin and Fidelity Worldwide Investment among its shareholders, recently cut its staff numbers from 179 to 118.
Fulcrum chief executive Martin Donnachie said yesterday: “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 streamlined end–to-end nationwide service and customers, such as British Gas, have welcomed the clear ownership and improved communication.”
Mr Donnachie said that the cost base means the company is now in a position “where we can produce consistent profits at the levels of turnover we are currently delivering”.
He added: “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 half year period to September 30, the company delivered cost savings of £1.5m and implemented a new operating model, which provides customers with a single point of contact from enquiry to the point of delivery. Revenue over the six months was £16.8m compared with £19.5m in the same period the year before.
Recent contracts secured by Fulcrum have included an agreement to install 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.”