Report
Andy Smith
EUR 285.00 For Business Accounts Only

Fulcrum (FCRM LN, BUY, T/P 66p) - Growth story continues

Since 2013, Fulcrum’s share price has risen from 5p, peaked at 66p in February 2017 before falling back to its current level. The latest trading statement highlights two new areas for potential upgrades 1) acceleration in the rate of investment in the ownership of gas assets and 2) the imminent award of an Ofgem licence to own and operate electricity assets. We calculate the EBITDA in FY20 could be increased by as much as 5% as a result of these initiatives implying a PE rating of 14x and dividend yield of 5%. Given the recent underperformance and potential for upgrades we maintain our buy recommendation with the price target unchanged at 66p.
Underlying
Fulcrum Utility Services

Fulcrum Utility Services is engaged in providing unregulated utility connections and independent gas transportation services in the U.K. Co. designs and project manages utility connections for customers seeking either new connections or the alteration or refurbishment of existing connections. These connections range from simple, single-site alterations to large, complex multi-utility, multi-site new connections. Co. operates in two segments; Infrastructure Services provides utility infrastructure and connections services, and the Pipeline business comprises both the ownership of gas infrastructure assets and the safe and efficient conveyance of gas through its gas transportation networks.

Provider
Whitman Howard
Whitman Howard

Whitman Howard is an independent institutional stockbroking and investment banking business focused on servicing the needs of our corporate clients and institutional investor base.

The company began trading in 2011 with a team of highly experienced market professionals and the goal of building a leading capital markets business in an entrepreneurial environment.

Analysts
Andy Smith

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