AIM star to ominous accounting – what’s gone wrong at Fulcrum?
Having been regarded an AIM-gem less than two years ago, Fulcrum is now being included in a list which includes Yu Group, Staffline and Patisserie Valerie – companies which have been unravelled by accounting problems. So, what exactly has gone wrong at Fulcrum and can it turn things around?
It wasn’t that long ago that Fulcrum (LON: FCRM) was used as an example of AIM’s often overlooked excellence. A solid company with impressive repeat sales, a valuable network of assets and excellent capacity to generate cash. Things have changed very quickly. The company’s over-ambitious expansion plans have unwound the excellent work of former chief executive Martin Donnachie who left in mid-2017 having transformed the company from a beleaguered offshoot of National Grid, to a fast-growing utility specialist. Today it has been forced to delay the publication of its preliminary results because the auditors are re-assessing non-cash items. Having been regarded…