TIDMSMS
RNS Number : 0763A
Smart Metering Systems PLC
18 January 2024
18 January 2024
Smart Metering Systems plc
Trading Update
Smart Metering Systems plc (AIM: "SMS", the "Group"), the
integrated energy infrastructure company owning and managing smart
meters, energy data, grid-scale battery storage and other carbon
reduction (CaRe) assets, provides a trading update for the year
ended 31 December 2023 ("FY 2023").
Index-linked annualised recurring revenue
The total meter and data assets ILARR was GBP113.4m at 31
December 2023, which includes the annual RPI adjustment. This
represents a 16.8% increase since the prior year end (31 December
2022: GBP97.1m).
Category % change ILARR Portfolio
Smart meters + 24.4% GBP76.0m 2.5 million
--------- ---------- ------------
Data assets - 0.6% GBP15.9m 0.5 million
--------- ---------- ------------
Industrial & Commercial
meters + 18.9% GBP6.3m 0.1 million
--------- ---------- ------------
Traditional domestic
meters + 4.5% GBP11.7m 0.2 million
--------- ---------- ------------
Third party assets flat GBP3.5m 1.3 million
--------- ---------- ------------
Total + 16.8% GBP113.4m 4.6 million
--------- ---------- ------------
Smart meters
During the year, the Group installed c.450,000 smart meters (FY
2022: c.480,000), increasing the total smart meter portfolio to
c.2.5m (31 December 2022: c.2.1m).
Further to the announcement made on 1 December 2023 by Octopus
Energy Group ("Octopus") on the completion of its acquisition of
Shell Energy Retail Limited ("SERL") and the migration of SERL's
energy customers to Octopus's systems, SMS has received a
preliminary indication at an operational level from SERL that it
proposes to migrate certain gas and electric meter installations
under its contract with SMS to Octopus. SMS is considering this
information and will continue to engage with SERL and Octopus in
the coming months.
We continue to see wider opportunities to support energy
suppliers to deliver on their smart meter obligations (for example
in more complex installations).
Grid-scale battery storage
The Group's portfolio of grid-scale battery storage assets stood
at 860MW, of which 240MW (1MW/hour) was operational by 31 December
2023, an increase of 100MW since 31 December 2022. The operational
portfolio generated an annualised equivalent EBITDA of
c.GBP46,000/MW (FY 2022: c.GBP123,000/MW), broadly in line with the
wider market. Notwithstanding the recent volatility in battery
revenues, we continue to expect the long-term EBITDA contribution
to be c.GBP57,000 - GBP65,000/MW.
A 50MW (1MW/hour) site, which was expected to be operational in
Q4 2023, has been delayed to Q2 2024 due to upstream protection
works impacting the energisation of the site. In addition, the
Group expects three 2MW/hour sites(1) , totalling 90MW, to become
operational in Q4 2024.
Developing CaRe(2) assets
The Group continued to make strong progress in building its
delivery capability, commercial models and pipelines for the
provision of other developing CaRe assets and data services.
FY 2023 and outlook
The FY 2023 pre-exceptional EBITDA and underlying PBT are
expected to be in line with the Board's expectations. Net debt as
at 31 December 2023 was GBP171.9m.
The Group remains confident in FY 2024 and its medium-term
outlook.
SMS will confirm the expected timing for release of its FY 2023
results in due course.
(1) The capex and long-term EBITDA from a 2MW/hour site is
expected to be 50-60% more than a 1MW/hour site.
(2) Includes behind-the-meter solutions, such as solar and
storage, domestic EV chargers and air-sourced heat pumps, and
public EV charging infrastructure.
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
Cavendish Securities plc (Joint Broker 0131 220 6939 / 020
and Nomad) 7397 8900
Neil McDonald / Peter Lynch / Adam
Rae
Investec Bank plc (Joint Broker)
Henry Reast / James Rudd / Shalin
Bhamra
020 7597 5970
RBC Capital Markets (Joint Broker)
Matthew Coakes / Evgeni Jordanov /
Jack Wood 020 7653 4000
Instinctif Partners sms@instinctif.com
Tim Linacre / Guy Scarborough
Notes to Editors
Smart Metering Systems plc (www.sms-plc.com) the integrated
energy infrastructure company owning and managing 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 "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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