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SMS Smart Metering Systems 577p new target 868p 02/2017

Discussion in 'General Share Chat (SMS)' started by Groucho, Feb 15, 2017.

  1. Groucho

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    8E525589-D429-4173-A752-3D53D45F0405.jpeg
    Daily Mail 12/08/19
     
  2. Groucho

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    Smart Metering Systems faces “little risk” from meter removal says Barclays as it upgrades
    The bank said there was “little risk” of early removal of meters following several incidents in 2018 when SMETS1 meters went ‘dumb’ after switching suppliers

    [​IMG]
    Barclays did also cut their target price to 545p from 650p, citing “uncertainty” over the asset life of SMS meters
    The risk of early removals of energy meters supplied by Smart Metering Systems PLC (LON:SMS) is “overplayed” according to Barclays, which on Monday upgraded its rating on the stock.

    Barclays said that there was “little risk” of further early removal of meters following several “freak” incidents in 2018 when some of the company’s SMETS1 meters went ‘dumb’ when customers switched energy suppliers.

    Analysts at the bank said these removals were “unique”, that utility firms “do not really benefit” from removals and that all meters now communicate with a central network irrespective of the consumers’ utility provider.

    SMS has “some protection” against removals, which could in fact drive upside to revenues as utility firms not providing termination protection could pay higher rents on the meters.

    However, while Barclays upgraded to ‘overweight’ from ‘equal weight’, the share price target was slashed to 545p from 650p, citing “uncertainty” over the asset life of SMS meters, highlighting that the company’s meters had a depreciation of around 20 years while traditional meters were around 40 years.

    Despite this, Barclays remained positive, saying that the firm’s expected annualised recurring revenues (ARR) of £85.9mln for the first half of 2019 were “undervalued” with the further roll-out of meters and potential disposals potentially serving as a “catalyst to unlock value”.

    In lunchtime trading on Monday, SMS shares were 1.4% higher at 459.2p.

    B2E2DDC3-8F4E-41DF-8DE8-37AF5B0B88D1.jpeg
    https://www.proactiveinvestors.co.u...oval-says-barclays-as-it-upgrades-901872.html
     
  3. Groucho

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    Current trading and outlook

    SMS is focused on continuing to deliver the mandated smart meter rollout on behalf of its energy supplier customers, which have a significant backlog of end consumers requiring a conversion to smart. The Group's significant contracted pipeline is for the conversion of c.2 million meters to smart, with opportunity to exchange an additional c.4 million meters.

    With SMETS2 technical issues now substantially resolved and customer readiness for a mass rollout of SMETS2 meters, SMS expects engineering efficiency and installation run rates to continue to improve during the remainder of H2 2019 and into 2020.

    In order to meet this opportunity, SMS has continued to invest in its engineering capacity. SMS has a scalable and secure data infrastructure, already operating over 3.46 million meter and data assets and, as a result of the investment made in H1, the installation capacity to fit over 50,000 smart meters a month.

    SMS is now well positioned to be able to exploit these substantial opportunities in both the short and medium term.

    The Group has an additional carrying cost as a result of the under utilisation of engineers previously disclosed. However, it is expected that approximately half of these costs will be mitigated in FY2019 by additional meter rental income. Overall, whilst revenues and ILARR are anticipated to be ahead of market expectations, the Board now expects pre exceptional EBITDA for the current financial year to be marginally below current market expectations due to an expected c.£3madditional net engineering cost, with a consequent impact on underlying profit before tax.

    SMS's mission remains unchanged, striving to deliver the future of smart energy. Whilst the immediate focus is on the UK Domestic smart market opportunity, SMS is continuing to develop its capabilities to deliver innovative and integrated energy solutions to its customers, leveraging a growing installed smart meter base to enhance the Group's service position.

    Smart Metering Sys - Interim results https://www.voxmarkets.co.uk/rns/announcement/30911bd7-dfcb-4390-91f3-aa0ab2dd40bc
     
  4. Groucho

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    City AM 18/09/19
     
  5. Groucho

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    31 January 2020

    Smart Metering Systems plc


    Year end trading update and market outlook


    Smart Metering Systems plc (AIM: SMS, the "Group"), the UK's largest integrated installer for independent energy suppliers and manager of smart meters, provides a trading update and market outlook.


    Highlights

    · FY 2019 financial performance in line with current market expectations

    · Total index linked annualised recurring revenue ("ILARR") grew 20% to £90.1m

    · Total meter and data assets under management grew 19% to 3.7million

    o Smart meter portfolio grew 44% to 1,215,000 meters

    · BEIS smart meter roll-out extension to December 2024 provides energy suppliers with greater flexibility. Roll-out profile expected to be more evenly spread with the proposed introduction of compulsory annual installation targets for energy suppliers

    · SMS will continue to address the significant smart metering market opportunity with a continued focus on securing long-term inflation-linked, sustainable revenue streams supported by an ongoing cost discipline and efficient long-term capital structure


    FY2019 trading update

    The Group's continued investment throughout the year saw the total number of metering and data assets under management increase by approximately 19% to 3.7million by 31 December 2019 (3.1million at 31 December 2018). This figure includes a portfolio of 1.2million domestic smart meters.

    Total ILARR increased by 20% to £90.1m as at 31 December 2019. Meter recurring revenue grew by 23% to £77.8m, while data recurring revenue was £12.3m. Recurring meter revenue from smart meters was £38.0m, from traditional domestic meters £18.6m, and I&C meters £21.2m.

    FY2019 year-end net debt is expected to be c.£220m, in-line with the Board's expectations.

    Based on unaudited management accounts, SMS expects that its financial performance for FY2019 is in line with the current market expectations.

    The Group's results for the year ending 31 December 2019 are expected to be released on 17 March 2020.


    Smart Meter rollout deadline extension to 2024

    The political commitment to the smart meter rollout, built on the economic and environmental business case, has been reaffirmed by BEIS's intention to introduce compulsory annual installation targets on the energy suppliers between 2020 and 2024.

    The BEIS consultation provides a stricter regulatory regime, albeit over an extended time period, for energy suppliers. The extension has provided energy suppliers with greater timing flexibility than before, and SMS now expects the installation profile to be more evenly spread until 2024 as a result.


    SMS smart meter market opportunity

    SMS has strong order book visibility over the medium-term which, coupled with a well-established engineering, IT platform and financial capacity, allows the Group to take advantage of these opportunities.

    SMS will continue to deliver on its order pipeline, and wider market opportunity, with a strong focus on engineering efficiency and cost discipline. SMS will also continue to seek to have an efficient long-term capital structure.


    Group Strategy

    The Group continues to focus on securing long-term inflation-linked, sustainable revenue streams. As at the end of 2019, SMS generated an ILARR of £59.2m through its mature I&C and domestic smart meter portfolios, with additional pipeline opportunities from its existing contracts with independent energy suppliers initially to add a further c£40m in recurring rental. The Group remains committed to enhancing shareholder value whilst also investing in future growth of the business in a cost and capital efficient way.

    SMS has also invested over several years in the foundations for future growth, resulting in a very experienced management team, well-established utility infrastructure design & installation, asset & data management and energy services divisions with a UK-wide presence, and a central cloud-based IT and data platform. Additionally, the Group's FlexiGrid software controls operations to integrate energy storage systems, renewable generation and vehicle charging into the UK's energy systems, shaping demand to follow renewable energy supply and operate as a Virtual Power Plant.

    This fully-integrated platform enhances the Group's ability to provide a comprehensive end-to-end service proposition to its established industrial, domestic and energy services customer base.


    Awarded London Stock Exchange Green Economy Mark

    SMS has been awarded the Green Economy Classification & Mark by the London Stock Exchange. This accreditation identifies London-listed companies and funds that generate over 50% of total annual revenues from products and services that contribute to the global green economy.


    Future opportunities

    Beyond the UK domestic smart market opportunity, SMS continues to develop its capabilities to deliver innovative and integrated energy solutions to its customers. SMS is leveraging the foundations established in smart meters to grow its service proposition and establish new asset classes at the centre of the energy system as the economy transitions to a more sustainable and low-carbon future.


    Monetising of a minority of the Group's meter assets

    The Group continues to be in discussions regarding the sale of a minority of the Group's meter assets. A further update on the possible sale will be provided as and when appropriate.



    Alan Foy, Chief Executive Officer, commented:

    "This year marks our 25th anniversary, a testament to SMS's secure business foundation and long-term business model. Through our established industry-wide partnerships and strong integrated delivery platform we are committed to creating a resilient energy infrastructure for the future, focussed on delivering long-term value for all our stakeholders.

    "SMS will continue to address the smart meter roll-out opportunity over the extended rollout period, with focus on securing long-term inflation-linked, sustainable revenue streams supported by an ongoing cost discipline and an efficient long-term capital structure."
     
  6. Groucho

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    23 April 2020


    Smart Metering Systems plc

    Completion of asset disposal and trading update


    Smart Metering Systems plc (AIM: "SMS", "Group"), which installs and manages smart meters and carbon reduction assets ("CaRe") to facilitate effective energy management, announces the completion of the minority assets disposal and a trading update.


    Completion of minority assets disposal

    The Group announced on 12 March 2020 the conditional sale of a minority of the Group's meter assets to Equitix for a total gross cash consideration of £291 million. The sale has now completed on schedule, with the Group having received net cash consideration after expenses of £282 million. The Group now has £45 million cash at bank and a fully undrawn £300 millionRCF.

    The Group's revised dividend policy is 25p dividend per share for FY2020 and increasing at least in line with RPI p.a. until FY2024. The Group intends to maintain a prudent net debt / EBITDA ratio through the remainder of the roll-out and has flexibility in funding further growth in a capital efficient way.


    Trading update

    At 1 April 2020 the total retained Index Linked Annualised Recurring Revenue ("ILARR") was £75.8 million, after deducting £18.4 million of I&C revenues as part of the completed minority asset disposal.

    The Group announced on 24 March 2020 that it has temporarily stopped all non-essential field work which includes the installation of smart meters until further notice, due to the ongoing Covid-19 disruptions.

    SMS will continue to provide full emergency field support and related activities and will maintain its extensive IT infrastructure which supports its existing meter and data asset base and the ILARR generated by these assets.

    Despite Covid-19, the Group currently expects underlying profitability and cashflows for FY20 to be in line with the Board's earlier expectations.
     
  7. Groucho

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    30 July 2020

    Smart Metering Systems plc


    Trading update and FY 2020 outlook


    Smart Metering Systems plc (AIM: "SMS", "the Group"), which installs and manages smart meters and carbon reduction ("CaRe") assets to facilitate effective energy management, provides a trading update for the six months to 30 June 2020 ("H1 2020") and full year ("FY 2020") outlook.


    Highlights

    · Revenue and underlying profit in line with the Board's earlier expectations, reflecting the resilient nature of the SMS business model

    · The disposal of a minority of the Group's meter assets for gross cash proceeds of £291m completed on 22 April 2020. This disposal has resulted in a net Index Linked Annualised Recurring Revenue ("ILARR") adjustment of £17.6m, presented on a pro-forma basis as £72.6m at 31 December 2019 for comparative purposes

    · Like for like ILARR therefore grew 4.6% to £75.9m as at 30 June 2020

    · 25p per share dividend for FY 2020 to be paid in four equal cash instalments, starting October 2020

    · Strong liquidity position with £45m net cash and access to a £300m revolving credit facility as at 30 June 2020

    · Domestic smart meter portfolio of 1.27m meters, an increase of 54,000 in H1 2020

    · Contracted order book of a further two million smart meters with additional metering opportunities from existing customer base

    · Continued progress on CaRe asset origination with increased scope


    Outlook


    · Smart meter installation run-rate expected to return to pre-COVID levels by the beginning of 2021

    · FY 2020 underlying profitability remains in line with the Board's earlier expectations


    Alan Foy, Chief Executive Officer, commented:

    "Despite the unprecedented circumstances, our financial performance was strong, further demonstrating the resilient nature of our business, the defensive nature of the metering infrastructure asset class and the stable cash flows it generates.

    "Our substantial contracted order book and strong liquidity position will allow SMS to roll out millions of smart meters over the next few years, thereby growing our index linked recurring revenues.

    "The potential scope of SMS' CaRe asset pipeline has improved significantly following both the UK Government's stimulus package aimed at a green recovery from COVID-19 and the renewed ambition to achieve a zero-carbon economy as soon as possible.

    "In addition to delivering strong growth, the long-term cash generative nature of our business, coupled with SMS' strong liquidity, supports the sustainable growth in our dividend, whilst continuing to maintain a prudent capital structure."

    COVID-19

    Since the emergence of COVID-19, the Group's key priority has been, and remains, the well-being of its employees and customers.

    As previously reported, non-emergency meter installation activities were suspended at the end of March due to COVID-19. All installation activities were subsequently resumed on 1 June 2020.


    Resilient Business Model

    Both the Group's H1 2020 and FY 2020 revenues and underlying profitability are expected to be in line with the Board's earlier expectations, reflecting the resilient nature of SMS' business model.

    SMS' financial performance has been supported by the Group's long-term ILARR and the traditional meters, which remained on the wall for longer than anticipated due to a deceleration in the smart meter exchange programme, and continued to generate revenue over that period through both meter rental and transactional emergency work.

    The Group's strong cash generation over the period also enabled the return of funds received from the UK Government under the Coronavirus Job Retention Scheme.


    Growing, Sustainable Dividend

    As previously announced, SMS will pay a 25p per share dividend in respect of FY 2020 (representing an increase of 3.6x over FY 2019), with the first of four equal cash instalments paid in October 2020.

    The Group's growing dividend is well covered by existing long-term, inflation linked and recurring cash flows.


    Enabling the Zero Carbon Economy

    SMS' smart meter rollout is helping facilitate the UK's green revolution by providing customers greater control of their energy usage. The Group's commitment to enable transition to a zero-carbon economy has been furthered by the previously announced partnership with Columbia Threadneedle European Sustainable Infrastructure Fund to develop a pipeline of CaRe assets.

    The Group has made progress in the origination of CaRe assets, currently at various stages of development, and the potential scope has improved significantly following the UK Government's stimulus package aimed at green recovery from COVID-19 and the renewed ambition to achieve the zero-carbon economy as soon as possible.

    SMS' strong liquidity profile provides the Group with the resources to address this growing opportunity:

    · £45 million net cash position and access to a £300m revolving credit facility at 30 June 2020

    · The reduction in smart meter installations as a result of COVID-19 also reduced SMS's capital expenditure requirement over the period, providing further support to the Group's liquidity position


    Financial highlights

    · Meter and data asset ILARR +4.6% to £75.9 million as at 30 June 2020 (31 December 2019: £72.6 million, proforma)

    · Domestic smart meter ILARR +7.4% to £40.9 million

    · Data assets grew 2.2% to £12.5 million

    · Industrial and Commercial meters +c.15.8% proforma basis to £4.2 million

    · Traditional domestic meter ILARR -1.6% to £18.3 million; the Group expects to exchange these traditional meters for smart meters over the course of the exchange programme

    Following the completion of the sale of a minority of the Group's meter assets on 22 April 2020, SMS will report a gross gain on disposal of £195 million. Certain costs will also be reported in Exceptional Items in the Group's annual accounts for FY 2020, relating primarily to transaction costs associated with the sale of a minority meter assets, ongoing legacy meter disposals and COVID-19 related costs and in total currently comprise approximately £15-16 million. Further details will be provided in the interim results announcement.


    Operational highlights

    During H1 2020 SMS installed 54,000 domestic smart meters in H1 2020, taking the Group's domestic smart portfolio to 1.27 million meters.

    The Group's total metering and data assets under management increased to 3.74 million (31 December 2019: 3.73 million) with its domestic smart meter portfolio increasing by c.4.4% to 1,269,000 (31 December 2019: 1,215,000).


    Outlook

    Despite the effects of COVID-19, the Group's FY 2020 revenues and underlying profitability are expected to be in line with the Board's earlier expectations, reflecting the resilient nature of SMS's business model.

    The Group expects the smart meter installation run-rate to return to pre-COVID levels by the beginning of 2021.

    The Government's extension of the smart meter rollout deadline by six months to 1 July 2025, is in line with SMS's planning and has no material impact on the Group's forecasts for its roll out programme.


    H1 2020 results

    SMS expects to publish its first half results on 15 September 2020.
     
  8. Groucho

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    15 September 2020

    Smart Metering Systems plc


    H1 financial and operational performance highlights business resilience, underpinned by balance sheet strength


    Smart Metering Systems plc (AIM: SMS, the Group), which installs and manages smart meters and carbon reduction assets (CaRe) to facilitate effective energy management, has published its half year results for the six months ended 30 June 2020.
    Screenshot_20200930-074110_Brave.jpg

    Highlights


    Financial

    · ILARR at 30 June 2020 up 11% to £75.9m (30 June 2019: £68.3m, pro-forma)

    · Pre-exceptional EBITDA up 8% to £27.8m (H1 2019: £25.8m)

    · Underlying profit before taxation up 98% to £9.1m (H1 2019: £4.6m)

    · Net cash at 30 June 2020 of £44.5m (30 June 2019: net debt of £186.6m)

    · No debt outstanding as at 15 September 2020 and committed facilities available of £300m

    · FY 2020 outlook unchanged


    Asset disposal - completed 22 April 2020

    · c.187,000 I&C meter assets disposed of with a weighted average age of 4.7 years

    · £290.6m gross cash proceeds received from asset disposal

    · £194.7m gross gain on disposal reported in the period


    Dividend

    · 25p per share dividend intended in respect of FY 2020, to be paid in four instalments starting October 2020

    · Intention to increase by 10% per annum until FY 2024

    · Covered by long-term index-linked cash flows from existing metering and data asset base


    COVID-19

    · Continued growth during challenging period demonstrates the resilience and strength of the business model

    · Phased and progressive resumption of all non-essential field work progressing well

    · Emergency works maintained throughout the period, helping to keep the UK's energy infrastructure operating securely


    Smart meters

    · Meter installations are beginning to return to a pre-COVID-19 level. This is expected to be achieved in Q4, albeit ongoing local lockdowns continue to be monitored.

    · c.2 million contracted smart meter order pipeline5 expected to add c.£40m ILARR over the rollout period


    CaRe assets

    · Good progress in the origination of CaRe assets pipeline

    · Partnership agreement with Columbia Threadneedle European Sustainable Infrastructure Fund (ESIF) announced in March 2020 provides funding options

    · Initial portfolio identified in grid-scale battery storage


    Continued ESG enhancements

    · Establishment of a Health, Safety & Sustainability Board Committee

    · Strong net positive environmental impact

    · Active participation in Smart Metering Remobilisation Working Group established by BEIS

    · Proactive engagement with staff during COVID-19, with a focus on employee wellbeing


    Board changes

    · On 23 June 2020, Willie MacDiarmid stepped down from the Board and as Non-executive Chairman

    · Miriam Greenwood, formerly the Senior Independent Non-executive Director, appointed as Non-executive Chairman

    · Jamie Richards appointed as Non-executive Director


    Alan Foy, Chief Executive Officer, commented:

    "We have delivered a robust financial performance in the face of a highly challenging operating environment in the first half of 2020, with increases in index-linked annualised recurring revenue (ILARR) and underlying profitability.

    "The completion of a disposal of a minority of our I&C meter asset portfolio in April has further underscored the attractive nature of the meter asset class, provided balance sheet strength and enabled us to substantially increase the FY 2020 dividend. We have announced today an intended annual increase of 10% over the coming four years.

    "Our pipeline of CaRe asset opportunities is making strong progress across a range of asset classes following our agreement with Columbia Threadneedle European Sustainable Infrastructure Fund announced in March, with an initial portfolio identified in grid-scale battery storage.

    "The entire team at SMS has demonstrated outstanding resilience and commitment in the face of the challenges presented by COVID-19. We are well positioned, both financially and operationally, to deliver on our sizeable contracted smart meter order pipeline and move forward with the development of CaRe assets. Together, these will support the next phase of our evolution as a business at the heart of smart energy management."


    https://www.londonstockexchange.com/news-article/SMS/half-year-results/14685628
     
  9. Groucho

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    17 December 2020

    Smart Metering Systems plc

    Update announcement

    Smart Metering Systems plc (AIM: "SMS", "the Group"), which installs and manages smart meters and carbon reduction assets ("CaRe(1)") to facilitate effective energy management, provides an update on the Group's operational and financial performance.


    Key highlights:

    · Smart meter installations at >80% of pre-Covid run rate despite local lockdowns

    · Continued development in CaRe pipeline, having secured rights to 117.5MW of grid scale batteries with an additional 150MW under exclusivity

    · FY2020 underlying PBT marginally ahead of Board's expectations, with forecast year-end net cash position of c.£30m

    · Board remain confident of the current FY2021 consensus expectations

    · SMS to become net zero carbon emissions by 2030


    Meter installation run rate improving steadily despite local lockdowns

    SMS has continued to see a progressive recovery in the installation run-rates since the first national lockdowns, despite continued local restrictions. SMS is currently operating at >80% of the pre-Covid run-rate and is positively geared for the continued increase in installation activity to deliver the mandated smart meter roll-out and the contracted order pipeline.


    The Group continues to provide all supporting control measures to ensure the safety of our engineers, support staff and end consumers.


    Continued development in CaRe assets, strong pipeline in grid scale batteries

    In addition to the focus on the UK smart meter market, the Group's strategy also includes the development of CaRe assets as the economy transitions towards net zero carbon. SMS continued to make strong progress in developing its pipeline of CaRe assets across several verticals, including grid scale battery storage, Behind the Meter smart solar and storage (BTM), ADMTM(2) Australia, EV charging infrastructure and heat networks and meters.


    SMS is pleased to announce that it has secured an initial pipeline of 117.5MW of grid scale battery storage projects. These projects are under construction and expected to be energised by Q4 2021. The Group is also under exclusivity to acquire an additional 150MW which, if successful, will start construction in 2021 and be energised by mid-2022.


    The Group continued to make good progress on BTM, with trials with four local authorities underway. The Group intends to launch the fully funded BTM products early next year. SMS's proposition is to provide turnkey smart solar and storage assets and services to local authorities and housing associations backed by long term secured revenues. SMS's BTM proposition will significantly reduce tenants' energy costs (up to 25%) and decarbonise housing stocks (up to 90% of electricity supply).


    The Group is also in early stage discussions with certain Australian water utilities to undertake trials of its ADMTM devices, and sees potential, over time, for significant water metering opportunities in Australia. SMS's proprietary ADMTM devices are a proven reliable data logger solution, through which water utilities and customers are able to access water consumption data via its cloud-based utility analytics software.


    SMS continues to evaluate the funding options for these opportunities, including through its existing partner, ESIF(3), and other potential funding sources.


    FY2020 underlying PBT marginally ahead of expectations

    In the light of recent trading, the Board expects FY2020 underlying PBT to be marginally ahead of its expectations, with forecast year-end net cash position of c.£30m.


    FY2021

    The Board acknowledges that the current macroeconomic uncertainties make forecasting challenging but remains confident of achieving the current FY2021 consensus expectations.


    Business model

    The Group's trading performance highlights the resilience of the Group's business model and its infrastructure asset classes, which generates long-term, predictable and index-linked revenue streams. The existing recurring cash flows support an annual 10% increase in dividends, from 25p per share in FY2020 until 2024.


    2030 Net zero target

    ESG and sustainability remain at the heart of SMS's operations and culture. Earlier this year the Group announced the establishment of a dedicated Health, Safety & Sustainability Board Committee headed by the Group's Chair. The Group is now pleased to announce a net zero carbon emissions target by 2030 which will see SMS's scope 1 and 2 emissions reduced to zero through actions taken across both its fleet and buildings. The Group will provide further details in due course.


    Alan Foy, Chief Executive Officer, commented:

    "We have demonstrated strong resilience throughout 2020 and our performance is testimony to the commitment and dedication of the entire SMS team.

    "Our meter installation run rate continues to show steady improvement despite local lockdowns. We also continue to make tangible progress in developing a strong pipeline of Carbon Reduction assets.

    "I'm delighted to unveil today our ambition to achieve net zero carbon emissions by 2030. Our CaRe assets and technology solutions are at the heart of the low-carbon, smart energy revolution that is pivotal to realising a greener, more sustainable world."


    FY2020 Results

    SMS intends to release its full year results for FY2020 in the week commencing 15 March 2021.

    (1) All carbon reducing assets including energy efficiency systems, metering, lighting, battery storage, distributed generation, EV charging, data and control, etc.

    (2) The ADM™ is a cost effective and reliable data collection and smart metering solution developed by SMS. The ADM™ is a 'plug and play' device which could be fitted on the existing metering assets making the assets smart and enabling transmission of half hourly consumption data to the water utilities.

    (3) ESIF: Columbia Threadneedle European Sustainable Infrastructure Fund
     
  12. Groucho

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    03 March 2021


    Smart Metering Systems plc

    Meter contract wins and I&C Half Hourly meter acquisition


    Smart Metering Systems plc (AIM: "SMS", the "Group"), which installs and manages smart meters and carbon reduction assets ("CaRe") to facilitate effective energy management, announces two new domestic smart meter contract wins and the acquisition of Industrial and Commercial ("I&C") Half Hourly ("HH") electricity meters.


    New domestic smart meter contract wins

    SMS has entered into agreements with two of the fastest growing independent energy suppliers to provide services as an integrated domestic smart meter installer and Meter Asset Provider.

    Under the terms of the agreements, which include a minimum contracted order commitment, SMS will fund and install domestic smart meters on behalf of the energy suppliers. These contract successes enhance SMS's contracted smart meter order pipeline to c2.5 million meters (31 December 2020: c2.0 million) and will, on delivery, add to the Group's existing portfolio of long-term indexed-linked annualised recurring revenues ("ILARR").


    Acquisition of I&C HH electricity meter portfolio

    SMS has concluded an agreement to acquire a portfolio of c.15,000 I&C large power HH electricity meters for a cash consideration of £8.25 million.

    The assets have an average life of 4.6 years and will add £1.1 million meter rental to the Group's ILARR. As part of the transaction, which is scheduled to complete in early April 2021, SMS will also take ownership of the data service contracts associated with over 20,000 meters, which will initially generate a further net £2 million of data annualised recurring revenue.


    Alan Foy, Chief Executive Officer, commented:

    "I am delighted with the addition of the fastest growing energy suppliers to our portfolio of contracted energy suppliers for the smart meter roll-out programme. These wins underpin our robust end-to-end integrated model and will further expand our long-term ILARR.

    "In addition, the acquisition of the I&C Half Hourly meter portfolio is testament to the strength of SMS's data platforms, which enables the Group to consolidate such value accretive opportunities and further leverage its well-established infrastructure."
     
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    Screenshot_20210316-071601_Vox Markets.jpg

    Highlights


    Financial

    · ILARR at 31 December 2020 up 6% to £77.0m (2019: £72.6m, pro-forma)

    · Pre-exceptional EBITDA down £9.0m, or 15%, year-on-year to £49.9m (2019: £58.9m), reflecting the effect of minority asset disposal

    · Underlying profit before taxation down £0.4m, or c.2%, year-on-year to £15.2m (2019: £15.6m), reflecting the effect of minority asset disposal

    · Excluding the effect of the minority asset disposal there has been underlying growth in profitability on a like-for-like basis

    · Net cash at 31 December 2020 of £40.2m (2019: net debt of £219.2m)


    Minority asset disposal - completed 22 April 2020

    · c.187,000 Industrial & Commercial ('I&C') meter assets disposed of with a weighted average age of 4.7 years

    · £290.6m gross cash proceeds received from minority asset disposal

    · £194.7m net gain on disposal reported in the year


    Dividend

    · 25p per share dividend proposed in respect of FY 2020, paid in four instalments starting October 2020

    · Intention to increase by 10% per annum until FY 2024

    o 27.5p per share dividend in respect of FY 2021 targeted

    o Covered by long-term index-linked cash flows from existing metering and data asset base


    COVID-19

    · Continued growth on a like-for-like basis during exceptionally challenging period demonstrates resilience and strength of the business model

    · Supporting measures provided to ensure safety of engineers, staff and end consumers

    · Emergency works maintained throughout the period, helping keep UK's energy infrastructure operating securely

    · No reliance placed on UK Government support during FY 2020


    Smart meters

    · Despite ongoing national lockdown, meter installation run rate sustained at c.80% of pre-COVID-19 rate in Q4 2020

    · Domestic smart meter contract wins post year-end increase contracted smart meter order pipeline to c.2.5 million (from c.2.0 million)that will add c.£50m of ILARR


    CaRe assets

    · Well positioned to capitalise on decarbonisation trends and policy initiatives

    · 90MW of grid-scale battery projects acquired and currently under construction, with rights to acquire a further 100MW obtained post year-end

    · In exclusivityto acquire a further 280MW, giving a total pipeline of 470MW which in total will generate c.£20m EBITDA once completed

    · Establishing other CaRe assets pipeline, including through its existing partner Columbia Threadneedle European Sustainable Infrastructure Fund (ESIF)


    Post year-end acquisition

    · Concluded an agreement to acquire an I&C large power electricity meter portfolio and Half Hourly ('HH') data service contracts from a large energy supplier

    o The portfolio will initially generate additional c.£3.1m of ILARR

    o Reinforces strength of SMS end-to-end industry platform


    Environmental, Social and Governance ('ESG')

    · Dedicated Health, Safety and Sustainability Board Committee headed by the Group's Chairman

    · Committed to target of 'net-zero' carbon emissions by 2030

    · Established strong ESG credentials: rated 'A' by Morgan Stanley Capital International (MSCI) and 'B' by Carbon Disclosure Project (CDP)


    Board changes

    · Willie MacDiarmid stepped down from the Board and as Non-executive Chairman on 23 June 2020

    · Miriam Greenwood, formerly Senior Independent Non-executive Director, appointed Non-executive Chairman

    · Jamie Richards appointed Independent Non-executive Director and chair of the Remuneration Committee

    · Gavin Urwin joined as CFO-Designate on 8 February 2021; David Thompson, current CFO, to depart 31 March 2021.


    Alan Foy,Chief Executive Officer, commented:

    "2020 has been a transformational year for SMS, from which we have emerged a stronger, leaner organisation with a reinforced commitment to our customers, the environment and our people. We have delivered financial results ahead of market expectations in an unprecedented year, demonstrating the strength of our business model.

    "Since the end of the year we have won new meter contracts, secured rights to an additional 100MW of grid-scale battery storage projects and purchased an I&C portfolio that will benefit from our end-to-end industry systems. These achievements are testament to SMS's ability to leverage its well-established platform and infrastructure, and to support continuing growth, with significant additional opportunities in CaRe assets.

    "The COVID-19 pandemic has accelerated the urgency to decarbonise, decentralise and digitalise the UK's energy systems. For over 25 years SMS has played a pivotal role in UK energy and is now well positioned to transform the economy towards net zero.SMS itself has committed to achieving 'net-zero' carbon emissions by 2030, two decades ahead of the UK's own 'net-zero' target.

    "I am exceptionally proud of the way all our staff have responded to the challenges presented by the pandemic in 2020. We maintain our focus on safely serving our customers and are well placed to drive forward our strategy of delivering smart energy solutions to realise a greener, more sustainable future."


    There will be an analyst webcast at 9.00am today - please contact sms@instinctif.com for details. The full year results presentation will be published on the Group's website shortly.

    Smart Metering Sys - Full year results #SMS https://www.voxmarkets.co.uk/rns/announcement/5bf83f17-b790-441c-ba6a-0e9d83cd39e5 #voxmarkets
     
  15. Groucho

    Groucho Member

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    20 May 2021

    Smart Metering Systems plc

    AGM update


    Smart Metering Systems plc (AIM: "SMS", the "Group"), a fully integrated energy infrastructure company owning and managing meter assets, energy data, grid scale batteries and other carbon reduction (CaRe) assets, will hold its Annual General Meeting later today.

    In line with previous guidance, the meeting will be subject to limited attendance with only Directors, or their proxies, present in person. Accordingly, SMS provides the following update regarding the Group's current trading, FY21 outlook and financial position.

    Trading and FY21 outlook

    At 30 April 2021, the Group's total Index Linked Annualised Recurring Revenue ("ILARR") was £83.1 million (31 December 2020: £77.0 million), including the ILARR from the Industrial & Commercial ("I&C") Half Hourly ("HH") electricity meter portfolio and associated data service contracts acquired in April 2021.

    The meter installation run rate has continued to improve, with installations in April 2021 above the pre-Covid run rate. If the recovery continues, the Group expects this to improve further.

    Delivery of the secured 190MW, and development of the additional 280MW pipeline, of grid-scale battery projects is on track and progressing well.

    The Group is currently trading in line with the Board's expectations.

    Financial position

    Liquidity remains strong with £28.4 million cash in hand (31 December 2020: £40.2m) and undrawn banking facilities of £276.8 million (31 December 2020: £300.0 million).

    We will continue to keep shareholders informed of our progress including a half year trading update in late July.
     
  16. Groucho

    Groucho Member

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    28 July 2021

    Smart Metering Systems plc


    Trading update and FY 2021 outlook


    Smart Metering Systems plc (AIM: "SMS", the "Group"), the fully integrated energy infrastructure company owning and managing meter assets, energy data, grid-scale batteries and other carbon reduction ("CaRe") assets, provides a trading update for the six months to 30 June 2021 ("H1 2021") and full year ("FY 2021") outlook.


    Highlights

    · Revenue and underlying profit in line with the Board's expectations

    · ILARR(1) grew 9.3% to £84.2m (31 December 2020: £77.0m)

    · Total meter and data assets increased to 4.0m (31 December 2020: 3.8m)

    o domestic smart meter portfolio increased by 146,000 to 1.5m

    o net increase in contracted smart meter order pipeline to c.2.35m(2) (31 December 2020: c2.0m)

    · Strong recovery in smart meter installation rates

    o over 30,000 meters installed in June

    o c.20% increase on pre-COVID-19 run rate

    · 470MW grid scale battery pipeline:

    o additional 100MW acquired taking the total to 190MW (31 December 2020: 90MW)

    o of which 90MW are under construction and 100MW to begin construction by Q4 2021

    o remaining 280MW under exclusivity

    · Continued focus on sustainability, our corporate social responsibility and strong governance

    Outlook

    · FY 2021 underlying profitability remains in line with the Board's expectations

    · Smart meter installation run rates expected to continue to strengthen

    · Expected FY 2021 dividend of 27.5 pence per share, +10% y-o-y and in line with stated policy

    · Continue to make progress in expanding the contracted smart meter order pipeline, grid-scale battery pipeline and development of wider CaRe products and services

    · Grid-scale battery projects continue to be built in line with the Group's cost and construction programme expectations

    ESG update

    · During H1 2021, the Group continued to make strong progress in all aspects of Environmental, Social and Governance

    · We have published an update alongside this trading statement, which is available here: https://www.sms-plc.com/corporate/investors/regulatory-news/.

    Index Linked Annual Recurring Revenue

    Total meter and data assets ILARR grew 9.3% to £84.2 million (31 December 2020: £77.0 million).

    Detailed breakdown below:
    Screenshot_20210728_072437.jpg

    H1 2021 results

    · SMS expects to publish its first half results on 14 September 2021.

    Capital Markets Day ("CMD")

    · We held our inaugural CMD in June and were delighted with the number of attendees and pleased with the feedback we have received

    · All documents and recordings of the CMD can be found on our website at https://www.sms-plc.com/corporate/investors/capital-markets-event/

    (1) Index Linked Annual Recurring Revenues

    (2) 0.5m increase offset by installations over the same period

    Alan Foy, Chief Executive Officer, commented:

    "The Group's performance remains strong, further demonstrating the resilience of our business, the defensive nature of the metering infrastructure asset class and the index linked sustainable cash flows it generates.

    Our fully integrated and scalable technology platform "METIS" is at the heart of digitally enabling and integrating our CaRe assets and energy data solutions and provides us with a great platform for growth.

    Once installed, we estimate our existing meter and battery pipelines will add a combined £70m to the Group's £50m of EBITDA in FY 2020. Our metering, data and battery CaRe products allow us to access an addressable market opportunity of c.£1.2bn EBITDA, alongside the significant additional potential provided by our developing CaRe products.

    We remain committed to our people, customers and the communities we serve and are proud of the role SMS plays in helping to deliver a net zero economy."
     
  17. Groucho

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    12F998F0-1848-48F4-98F2-C75F4FA5E70E.jpeg
    Sunday Telegraph 15/08/2021
     
  18. Groucho

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    25 August 2021

    Smart Metering Systems plc

    Meter contract win and additional grid-scale battery project secured


    Smart Metering Systems plc (AIM: "SMS", the "Group"), the fully integrated energy infrastructure company owning and managing meter assets, energy data, grid-scale batteries and other carbon reduction ("CaRe") assets, is pleased to announce a new domestic smart meter contract win and securing an additional grid-scale battery project.


    New domestic smart meter contract win

    SMS has entered into an agreement with a large energy supplier to fund and provide services, as Meter Asset Provider, for the installation of at least 400,000 domestic smart meters.

    The contract increases SMS's contracted smart meter order pipeline to 2.75 million meters (30 June 2021: 2.35 million) and will, on delivery, add to the Group's existing £84.2 million long-term indexed-linked annualised recurring revenues ("ILARR") as at 30 June 2021.


    Grid-scale battery storage pipeline

    SMS announced, in its recent trading update, that from its 470MW grid-scale battery pipeline, it had acquired 190MW with 280MW remaining under exclusivity. The Group is pleased to announce it has now secured a further 50MW project which was previously under exclusivity, increasing the secured pipeline to 240MW.


    Of the secured 240MW pipeline:

    · 90MW is under construction and continues to be built out in line with cost and construction programme expectations,

    · 100MW will begin construction during Q4 2021,

    · 50MW will begin construction during Q4 2022.


    Alan Foy, Chief Executive Officer, commented:

    "Today's smart meter contract win, which follows two wins announced earlier this year, will further expand our long-term index linked recurring revenues and leverages on the scalability of our well established end-to-end integrated model.

    Grid-scale batteries are critical to balancing the increasing volume of intermittent renewable generation and to further accelerate the adoption of renewables. Our long-standing experience in the design and delivery of large-scale electrical infrastructure projects and asset management positions us extremely well for this longterm attractive asset class."
     
  19. Groucho

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