Fulcrum Utility Services... Share Discussion Threads

[zeppo] 17/6/2011 12:31

In today on recommendation.

z

[masurenguy] 10/4/2011 14:33

RNS Number : 6006E
Marwyn Value Investors Limited
08 April 2011

Statement regarding potential offer for the Company

The board of MVI confirms that it has received a proposal from the board of Marwyn Management Partners plc ("MMP") in connection with a possible offer being made by MMP for the entire issued ordinary share capital of MVI (but the proposal does not currently include an offer for the B shares or exchange shares). The offer consideration for MVI would be new MMP shares which would value the MVI ordinary shares at their net asset value and might include partial cash and loan note alternatives at a discount to such net asset value. In connection with the cash element of the MVI offer, MMP has stated that it would intend to conduct an equity placing. There can be no certainty that an offer from MMP will be forthcoming. A further announcement will be made in due course when appropriate.

[serratia] 26/2/2011 12:58

If you're a fan of Marwyn,here are their other companies.

[masurenguy] 21/2/2011 12:15

In fact Fulcrum are the third largest holding in their ViCTory VCT fund as at Dec 2010.

10 largest holdings: 31 December 2010
Stock name % of total assets
Synergy Health 5.7
Prezzo 4.4
Fulcrum Utility 4.1
Tikit 4.1
Lo-Q 3.7
China Food Company 3.5
Asian Citrus 3.4
Green Compliance 3.4
Anglo Pacific 3.0
Tristel 2.8

[cnx] 17/2/2011 03:08

masurenguy
thanks yours above #57

RNS Number : 3264B

Fulcrum Utility Services Ld

16 February 2011

Fulcrum Utility Services Limited

Final Settlement with National Grid and Update on Trading

Fulcrum Utility Services Limited ("Fulcrum" or the "Company") is pleased to announce that it has received a payment of GBP8.2 million from National Grid for the surrender of tax losses in the period prior to completion of the acquisition of Fulcrum Group Holdings Limited from National Grid in July 2010. Fulcrum has also agreed with National Grid that no further payments are due under the SPA relating to the acquisition. The GBP8.2m will be used to fund working capital.

Trading in the business since acquisition has been broadly in line with management expectations and management expect Fulcrum's cash position at the year end to be better than anticipated. Margins in the existing order book are improving from the level of profitability inherited on acquisition which was lower than anticipated. Strong overall revenue performance has largely offset the effect of the adverse weather conditions during December which significantly disrupted work planned for that month. The Board remains confident that it can continue to execute the strategy it outlined at the time of the acquisition in July 2010.

[masurenguy] 16/2/2011 23:27

cnx - they currently don't have any need of a bank line of credit. The Company had cash of £13.0m at 30 September 2010 with current revenues running at circa £3m per month and increasing. To this you can add todays receipt of £8.2m from NG in return for surrendering their carried forward tax loss.

You can get some further data on the forward investment case here.

[serratia] 16/2/2011 19:35

Anyone know how many job losses there were at Edinburgh.

[cnx] 10/2/2011 02:47

masurenguy

thanks your #475 on the BGBL site directing me here

re your #50 above, i think that last years revenue of 36 million easily achievable for year to 3/11,and note sharescope have estimates 37mm for 3/11,50mm for 3/12 and 61mm for 3/13, and profits in 3/13. very good.

reading the recent report, i don't see any mention of bank lines being in place. how do they grow the sales other than by delaying payments to parts suppliers? how do they pay the wages? Any thoughts here?

[masurenguy] 17/1/2011 09:30

A 1Ok Buy @19.225p this morning classified as a Sell.

[masurenguy] 14/1/2011 13:50

serratia - I'm looking ahead to this year since the deal was only done last summer and the new management team have only just got their feet under the table.

"Reported revenue for the period from 4 December 2009 to 30 September 2010 was £9.8m, representing revenue of the FGH business for the period from 8 July 2010 to 30 September 2010."

That is just over 10 weeks through the summer period with a legacy annual sales revenue of £38m to the year ending March 2010 under the old regime at NG. They have hit the ground running where sales are concerned and there is plenty of scope to ramp up these volumes over the next 12 months. The other two priorities are to establish sustainable margins and to develop an efficient and cost-effective operational system.

Management set out their plans for delivering a turnaround strategy for returning the loss-making FGH business to profitability. This plan is based on growth in market share, improved operational efficiency and cost control. Following Completion, management has launched a series of initiatives aimed at improving the operational efficiency of the business, including a comprehensive appraisal of business processes, systems and contract profitability. Management as also held a number of meetings with key suppliers and customers in order to reinforce existing relationships and develop new business opportunities. As announced on 24 September 2010, a new senior management team has been appointed with the significant industry experience required to execute the turnaround strategy. Management remains confident of delivering the turnaround of the Group and is focussed on taking advantage of revenue growth opportunities and improving operational efficiency.

The potential and the strategy are already in place. The key factor now is how succesful the new management team will be in exploiting this strategy and delivering results.

[serratia] 14/1/2011 12:57

Mas,

I've run the figures and can now see how they'll make it to cash flow neutral after that it's sales growth.If they get a P/E of 10 then they need £3m profit and at 25% GP that's £12m extra sales which is possible.The only downside in the short term is the comment that they make most of their sales in Q3/Q4.They wouldn't have been out doing many jobs in Dec.

[ducatiman] 13/1/2011 09:49

Are you staying away from the ppc thread Pp? Are they drilling ahead yet?

[ducatiman] 13/1/2011 09:08

not much stock about it would seem, new highs today.

[masurenguy] 07/1/2011 11:22

Good for you - we seem to have some momentum building here !

[ducatiman] 07/1/2011 10:37

Mas, I have an interest as does my sipp, lol.

[masurenguy] 07/1/2011 10:36

Are you invested here duc or still monitoring from the sidelines ? The clinchers for me were the backing of Marwyn and the new management & strategy.

[ducatiman] 07/1/2011 10:21

Mas, indeed, stock seems to be tightly held by insts with very little available for PI`S. As long as the insts hold and there is demand these could surprise to the upside. An interesting year ahead with hopefully some operational progress reported. GL, duc.

[masurenguy] 07/1/2011 10:11

Yes, encouraging after taking an initial position here yesterday.

[ducatiman] 07/1/2011 09:41

buying continues today.