Utility infrastructure and services provider Fulcrum has completed the sale of a third tranche of domestic customer gas connection assets and associated meters to ESPipelines Limited for £3.8 million.
The company said the cash would strengthen its balance sheet and supports its strategy and growth ambitions.
Over three sale tranches Fulcrum has received £25.8 million and expects a further £23.2 million to be received, most over the next two to three years. The arrangement with ESP also includes further milestone targets which, if achieved, would trigger additional enhanced payments of up to £3.9 million over the remaining term of the contract.
Group chief executive Terry Dugdale said: “We are pleased to report another successfully completed tranche in the asset sale to ESP. The proceeds from this third tranche, and the future proceeds from the sale, provide the Group with additional financial strength that supports the continued strengthening of the business and the execution of our strategy and growth plans.”
Previously the company has said that the sale realises substantial value. The first tranche of domestic assets, which is projects that were complete at the end of September 2019, realised total proceeds of £17.9 million (against an original cost to the Group of £10.7 million, which has subsequently been revalued to £12.8 million).
The company also now has an ongoing with ESP and “Our combined strengths will support the winning of contracts that would previously been unobtainable to the Group.”
Non-executive Chair Philip Holder previously named designing and building renewable energy generating infrastructure, eV charging infrastructure, smart meter programmes and new-build low carbon homes as key target areas for the company.