TIDMSMS
RNS Number : 6580G
Smart Metering Systems PLC
28 July 2021
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 GBP84.2m (31 December 2020: GBP77.0m)
-- 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 GBP84.2 million
(31 December 2020: GBP77.0 million).
Detailed breakdown below:
Category % change ILARR
Domestic smart meters +9.6% GBP46.6m 1.5 million smart meters
--------- --------- -----------------------------
Data assets +21.5% GBP14.3m Includes GBP2.0 million
data service contracts
acquired as part of I&C
Half Hourly meter portfolio
acquisition
--------- --------- -----------------------------
I&C meters +51.1% GBP4.5m Includes GBP1.1 million
from I&C HH meter portfolio
acquisition
--------- --------- -----------------------------
Traditional domestic -4.0% GBP12.8m Traditional meters to be
meters exchanged for smart over
the rollout programme
--------- --------- -----------------------------
3(rd) party assets -5.9% GBP6.0m Driven by traditional meter
exchanges
--------- --------- -----------------------------
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 GBP70m to the Group's GBP50m of
EBITDA in FY 2020. Our metering, data and battery CaRe products
allow us to access an addressable market opportunity of c.GBP1.2bn
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."
For further information:
Smart Metering Systems plc 0141 249 3850
Alan Foy, Chief Executive Officer
Dilip Kejriwal, Investor Relations
Cenkos Securities plc (Joint Broker 0131 220 6939 / 020
and Nomad) 7397 8900
Neil McDonald / Pete Lynch
Investec Bank plc (Joint Broker) 020 7597 5970
Christopher Baird / Henry Reast
RBC Capital Markets (Joint Broker) 020 7653 4000
Matthew Coakes / Evgeni Jordanov /
Jack Wood
Instinctif Partners sms@instinctif.com
Tim Linacre / Guy Scarborough / Sarah
Hourahane
Notes to Editors
Smart Metering Systems plc (www.sms-plc.com) is the fully
integrated energy infrastructure company owning and managing meter
assets, energy data, grid-scale batteries and other carbon
reduction (CaRe) assets. The Group manages and optimises these
assets through its in-house technology and data analytical platform
"METIS".
Established in 1995, SMS provides a full end-to-end service,
from funding and installation to management and maintenance, with a
highly skilled workforce, deep engineering expertise and
well-established industrial partnerships.
SMS is leading the low carbon, smart energy revolution in the UK
and is committed to reducing its own carbon emissions to net zero
by 2030. SMS has been recognised with the London Stock Exchange's
Green Economy Mark every year since it was introduced in 2019.
SMS plc is headquartered in Glasgow with a national presence
across twelve UK locations.
SMS's shares are listed on AIM.
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END
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