Smart Metering Systems PLC New Banking Arrangements and ADMT Update (1629J)
02 August 2012 - 12:09PM
UK Regulatory
TIDMSMS
RNS Number : 1629J
Smart Metering Systems PLC
02 August 2012
02 August 2012
Smart Metering Systems plc
("SMS" or "the Company")
New Banking Arrangements and ADM(TM) Update
New Banking Arrangements
Smart Metering Systems plc (AIM: SMS.L), is delighted to
announce a new banking club arrangement with three major UK
banks.
The GBP45 million facility effective as of August 1, with
Barclays Bank PLC (lead bank), Clydesdale Bank PLC and Lloyds Bank
PLC, replaces the existing arrangement with Clydesdale Bank PLC,
originally made available for GBP12 million in September 2010 (with
a subsequent increase of GBP7.5 million in October 2011) and a
current outstanding amount of GBP10.6 million.
Following on from the substantial, recently announced contracts,
and acceleration in organic growth, SMS intends to use the new
facility to fund the purchase of meter assets during a phased
installation over the course of the next 24 months.
The facility is a revolver structure over 24 months, repayable
equally over 10 years with a 5 year break. Interest is applied to
the outstanding balance only. The Company's current interest rate
swap and cap arrangements will be terminated and replaced with
similar beneficial arrangements on broadly the same basis.
ADM(TM) Update
The Company is also delighted to announce that it has recently
received Full European Patent Approval for its ADM(TM) device,
which will come into effect on 15th August 2012 and will protect
the Company's intellectual property in this important market.
Whilst the major gas suppliers continue to be its primary focus,
SMS is beginning to see demand from the energy broker and energy
management services sector where there is an increasing requirement
from end consumers for an AMR (automated meter reading) solution.
To that end SMS has contracted with BIU, Ener-G, Utility Aid and
Solis Consulting as their preferred AMR and meter exchange provider
using the ADM(TM) device. Additionally, SMS has continued to
contract with new entrant gas supply companies and announces it has
added Axis for Business as a customer for the supply of the ADM(TM)
device and a meter exchange programme over the next 3 years, again
as its preferred supplier.
Alan Foy, Chief Executive Officer, commented:
"I am delighted in the substantial interest shown by the UK
banking community in what was a highly competitive process. The
Company was able to negotiate a substantial increased facility with
extremely good rates. The revolver structure, remaining cash
proceeds from our IPO last year and cash generated from operations
provide the Company with over GBP55 million to invest in metering
assets over the next 24 months. The new facility will underpin the
recent contracts we have announced and assist us to continue to
grow the business.
"We are also very pleased with obtaining full European patent
approval and the continued adoption of the ADM(TM) solution in the
secondary market and whilst we remain focussed on our core
customers and the major gas suppliers these are further steps in
establishing the ADM(TM) as the industry standard AMR solution.
"
For Further Information:
Smart Metering Systems plc
Alan Foy, Chief Executive Officer
Glen Murray, Finance Director 0141 249 3850
Cenkos Securities
Ken Fleming
Jon Fitzpatrick 0131 220 6939 / 0207 397 8900
Kreab Gavin Anderson
Ken Cronin
Anthony Hughes 020 7074 1800
Notes to Editors
About Smart Metering Systems
Established in 1995, Smart Metering Systems plc based in
Glasgow, connects, owns, operates and maintains metering systems
and databases on behalf of major energy companies.
Currently the Company is concentrating its efforts on offering
its unique integrated services to the UK industrial and commercial
gas market in which its customers have an 80% market share.
The company has further applications for gas with its ADM(TM)
device which allows "smart" functions such as remote reading and
half hourly consumption data to be offered to customers in addition
to the normal metering services. Longer term the company also has
additional applications for water and LPG.
The Company was admitted to the AiM market in July 2011 and is
now part of the FTSE AiM 50 index, for more information on SMS
please visit the Company's website: www.sms-plc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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