TIDMSMS
RNS Number : 8793N
Smart Metering Systems PLC
26 January 2023
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION. UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN
26 January 2023
Smart Metering Systems plc
Trading update
Smart Metering Systems plc (AIM: "SMS", the "Group"), an
integrated energy infrastructure company, provides a trading update
for the year ended 31 December 2022 ("FY 2022").
Key points
-- ILARR(1) grew 13.1% to GBP97.1m (31 December 2021: GBP85.9m)
-- Meter and data assets:
o smart meter portfolio increased to 2.1m (31 December 2021:
1.7m)
o contracted smart meter order pipeline of c.2.17m(2) (31
December 2021: c.2.55m), net of installations during FY 2022
o continued growth in meter installation run-rate, averaging
c.45,000 per month in the second half of the year
-- Grid-scale battery assets:
o total portfolio increased to 760MW (31 December 2021:
620MW)
-- 140MW operational and performed significantly ahead of
management expectations
-- 470MW fully secured, of which 150MW in construction
-- 150MW under exclusivity
-- Net debt at 31 December 2022 was GBP31.2m (31 December 2021: Net cash GBP117.7m)
-- FY 2022 underlying EBITDA expected to be marginally ahead,
and adjusted PBT expected to be materially ahead, of our previous
expectations
-- Remain confident for 2023 and medium-term outlook
-- Expected FY 2022 dividend of 30.25 pence per share, +10%
year-over-year, in line with stated policy
Tim Mortlock, CEO of SMS said:
"We delivered strong operational and financial performance
during FY 2022, highlighting the attractiveness of our CaRe asset
portfolio and the strong execution by our teams. As a consequence,
results for the year are expected to be ahead of our previous
expectations.
"Our business can deliver significant value in the years ahead,
with our inflation-linked recurring revenues from our existing
meter and data assets providing considerable protection against
macro-economic shocks. The strong momentum in our meter and
grid-scale batteries businesses provide us with confidence in our
2023 and medium term outlook."
(1) Index-linked annual recurring revenue
(2) 0.1m increase offset by 480,000 meter installs in FY 2022
Index-linked annual recurring revenue
Total meter and data asset ILARR was GBP97.1m at 31 December
2022, which includes the annual RPI adjustment. This represents a
13.1% increase over the year (31 December 2021: GBP85.9m).
Category % change ILARR Portfolio
Domestic smart meters + 22.0% GBP61.1m 2.1 million
--------- --------- ------------
Data assets + 15.5% GBP16.0m 0.4 million
--------- --------- ------------
Industrial & Commercial
meters + 14.0% GBP5.3m 0.1 million
--------- --------- ------------
Traditional domestic
meters - 5.3% GBP11.2m 0.3 million
--------- --------- ------------
Third party assets - 36.1% GBP3.5m 1.6 million
--------- --------- ------------
Total + 13.1% GBP97.1m 4.5 million
--------- --------- ------------
Meters
During FY 2022, SMS installed 480,000 smart meters,
outperforming the Group's expectations. The monthly installation
run-rate improved throughout the year, with an average of c.45,000
smart meters installed per month during H2 2022 (H1 2022: c.35,000
average), a c.50% increase on the same period in 2021.
The Group's strong supply chain, inventories, delivery capacity
and installation run rate provides the Board confidence in the
Group's ability to successfully deliver, and expand, SMS's
contracted smart meter pipeline.
The total smart meter portfolio increased to 2.1m, with an
additional order pipeline of c.2.17m at 31 December 2022, net of
meters installed and contract win during the year (31 December
2021: c.2.55m).
Grid-scale batteries
The Group's first 50MW grid-scale battery site at Burwell
commenced trading at the end of January 2022. Two additional sites,
40MW at Barnsley and 50MW at Brookfarm, became operational in
December 2022 and we have fully secured a further 200MW of our
pipeline in Q4 2022.
The financial performance of these sites has been significantly
ahead of the Board's initial expectations, equivalent to an
annualised EBITDA contribution of c.GBP123,000/MW. The majority of
the revenues generated over the year were from the provision of
frequency services, such as Dynamic Containment, which we expect to
soften over time as the volume of battery storage in the market
grows. We continue to expect the longer-term EBITDA contribution to
be c. GBP57,000-GBP65,000/MW.
As at 31 December 2022, the Group's portfolio of grid-scale
battery assets totalled 760MW (31 December 2021: 620MW), split as
follows:
-- 140MW operational (31 December 2021: Nil)
-- 470MW fully secured (31 December 2021: 320MW), including an
additional 200MW secured since September 2022
-- 150MW under exclusivity (31 December 2021: 300MW)
Currently, 150MW of assets are under construction, which we
expect to become operational in FY 2023.
The Board are pleased with the progress of the grid-scale
battery business during FY 2022, with the overall portfolio,
operational sites and fully secured sites all increasing over the
past 12 months.
Strategic Investments
As previously announced, SMS made two strategic investments in
2022 to accelerate the Group's EV charging infrastructure
capabilities and further expanding its energy data management
service offering.
The investment in Clenergy EV, a software business with a Charge
Point Operator platform focused on EV charging infrastructure,
complements SMS's existing EV installation capabilities and will
enable the Group to deliver a fully end-to-end integrated platform
for EV charging infrastructure. We are investing to grow our
pipeline in this area over the coming years, addressing the
destination, on-street and fleet market segments.
The acquisition of n3rgy, a data software company, will enhance
and accelerate SMS's existing capabilities in smart energy data
solutions, providing the Group with a strong competitive position
in the significant addressable market as the electricity industry
moves towards mandatory half-hourly settlement. We have integrated
this capability with our existing Flexigrid platform, enabling
energy suppliers and other 3(rd) parties to participate in the
National Grid Demand Flexibility Scheme this Winter, which pays end
consumers to use less energy at times of stress on the energy
network.
Other CaRe assets
The Group continued to build its delivery capability and
commercial models for the provision of other 'Behind-The-Meter'
CaRe assets, such as solar and storage, domestic EV chargers and
air-sourced heat pumps. SMS continue to see significant long-term
market opportunity in these sectors.
FY 2022 results and medium term outlook
The FY 2022 underlying EBITDA is expected to be marginally
ahead, and adjusted PBT expected to be materially ahead, of our
previous expectations. The Group remain confident in 2023 and the
medium term outlook.
SMS expects to publish its FY 2022 results on 14 March 2023.
For further information:
Smart Metering Systems plc 0141 249 3850
Tim Mortlock, Chief Executive Officer
Gail Blain, Chief Financial Officer
Dilip Kejriwal, Head of Investor Relations
Cenkos Securities plc (Joint Broker 0131 220 6939 / 020
and Nomad) 7397 8900
Neil McDonald / Pete Lynch / Adam
Rae
020 7597 5970
Investec Bank plc (Joint Broker)
Christopher Baird / Henry Reast
020 7653 4000
RBC Capital Markets (Joint Broker)
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) installs and
manages smart meters, energy data, grid scale batteries and other
carbon reduction assets ("CaRe") to facilitate effective energy
management. The Group manages and optimises these assets through
its in-house technology and data analytical platform.
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. In 2019, SMS was also awarded the London Stock Exchange
Green Economy Mark.
SMS plc is headquartered in Glasgow with a national presence
across twelve UK locations.
SMS's shares are listed on AIM.
, the news service of the London Stock Exchange. RNS is approved by
the Financial Conduct Authority to act as a Primary Information
Provider in the United Kingdom. Terms and conditions relating to
the use and distribution of this information may apply. For further
information, please contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTNKPBQABKDADB
(END) Dow Jones Newswires
January 26, 2023 02:00 ET (07:00 GMT)
Smart Metering Systems (LSE:SMS)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Smart Metering Systems (LSE:SMS)
Historical Stock Chart
Von Jul 2023 bis Jul 2024