Fulcrum Utility Services... Share Discussion Threads

[carpingtris] 30/7/2019 08:45

Interesting

[capercaillie] 30/7/2019 08:41

Big increase in stake from Bayford

[ducatiman] 29/7/2019 20:08

It will soon be early August.

[topvest] 27/7/2019 14:55

They have been investing in pipeline assets, as well flagged previously.

[podgyted] 27/7/2019 14:41

Looking to buy back in here but this comment from 28th March TU is perplexing me:-

"As at today the Company has drawn £3.0 million of its debt facility of up to £20.0 million supporting its external purchases of utility assets."

Given the £10m cash disclosed at 30/9/18 there seems to be a massive outflow of cash to the year end.

Have I missed anything?

[carpingtris] 22/7/2019 10:47

Directors could do some more buying when they are allowed.... buybacks aren't working out too well for lloyds, S32 money would be better spent elsewhere imo

[solarno lopez] 22/7/2019 09:10

Nice start to the day

[jm6783] 21/7/2019 17:07

I hear you but I think they should do the smartest thing they can for shareholders . If buying back shares leads to better risk -adjusted returns than can be earned from pipelines, etc - which at the current price it surely can be - then that is what they should do.

[iceman82] 21/7/2019 15:20

but at this stage of company cycle i think fulcrum should concentrate on expanding its business.... i would recommend buying back shares for company like CNA as that very mature company

[jm6783] 20/7/2019 23:09

Providing everything is ok with the accounts, I think that at these current levels, instead of raising the dividend or spending more on assets, management should be aggressively buying back shares if it is serious about maximising long run returns for shareholders.

[iceman82] 19/7/2019 14:29

Let’s not forget last time I checked they had 10 min plus cash and don’t think they used any of their 20 min debt facility ..... correct me if I am wrong

[ivancampo] 18/7/2019 20:07

Buy the dips, back to 40p + sooner rather than later for me.

[pictureframe] 18/7/2019 19:43

some big buying went on today

[topvest] 17/7/2019 21:21

Well it will knock £1m or so per annum from EPS going forward, albeit that £1m gets into the balance sheet through a reserves adjustment. It cleans up the long questioned revenue recognition treatment though, so earnings will be much cleaner and transparent going forward which is a positive. The £1m was non-cash revenue, as you get the £1m over 20 years and not in the year. All a positive development in my view.

[pictureframe] 16/7/2019 22:57

I am more than happy to collect my 7% with very limited downside.

[jl5006] 16/7/2019 21:57

TV
relatively small company which failed to grasp the need to embrace the new disclosure rules.
Forget the proactive involvement with their auditor - their auditor should have prepped them.
maybe they did - but Hazel didnot understand!
Given that they are not a utility supply company - they provide no supply - then the only matter here is the reversal of the erroneous entries and a credit to the balance sheet of a few million.
With no loss of momentum, divi or profit!!!!!!!!!!!!!

[topvest] 16/7/2019 21:36

I have quite a good understanding of IFRS 15 and IFRIC 18 actually. For utility companies it has always been a "grey area" for customer contributed assets like these even before IFRS 15 came along. Utility companies have various different treatments, but there is not a one size fits all approach and companies in the same sector often treat the same things differently! I can actually well understand why fulcrum have had this problem. They were just not proactive with their auditor on sorting it out on a timely basis. Anyway, we will have to await the annual report next month sometime. Continued patience needed, but it doesn't look too bad.

[iceman82] 16/7/2019 19:20

5 % up today is a good sign for share price to go higher once 30 p achieved then i will top up

[jl5006] 16/7/2019 18:47

tp vest
There was never a suggestion about impairments.
The balance sheet has benefited by the increased value of the adopted assets - but not the p & L.
Old accounting rules only related to land and buildings where - if there was a revaluation that would only go to the revaluation reserve - cos not sold - other assets if not impaired just remained at cost.
The IFRS guidance was just that til it became the requirement on 1 Jan 19.
The CFO had seemingly not got a grasp of the requirements - but there is no loss of cash - and just a lot of misunderstanding about the situation.
TV - why were the pipelines a questionable area - u didn't and still don't understand
the reason or the accounting treatment of them - and neither did the CFO.
More understanding and less criticism without foundation would help both this BB and LSE.

[pictureframe] 16/7/2019 16:32

nice buys going through

[ivancampo] 16/7/2019 08:36

Buy the dips, back to 40p + sooner rather than later for me.

[topvest] 16/7/2019 08:32

Looks like it will settle at around the high 20's / 30p for now. Probably will get back to 35-40p once the annual report is out. At the end of the day, they should have resolved the IFRS 15 treatment on pipeline assets a while ago. The auditor and/or the company has not been proactive in this regard. We may have to wait another month for the results, but I still think patience is needed here. It's not the end of the world, and should recover in the long-run. The new FD will hopefully sort things out for next year. Only IFRS 16 and leases to implement then.

The good news, I suppose, is that there is no mention of impairments of any kind which is another positive. The concern was over accounting errors and impairments as well, but neither have been mentioned. The issue appears to be on pipeline assets which has always been the questionable area (from an accounting treatment, not a valuation, perspective).

[topvest] 16/7/2019 08:28

The restatement will need working through, but other than potentially tax it doesn't change the closing balance sheet. Just DR. Revenue CR. Cost of sales CR. Reserves.

[jm6783] 16/7/2019 08:27

Thank you rimau1. I hope you’re right.

[rimau1] 16/7/2019 08:15

I am very confident here now. I had to pay 27p to double my holding but its worth it. There is no sinister activity at the company and underlying performance is not impacted.