Smart Metering Systems PLC COVID-19 update (2945H)
March 24 2020 - 3:00AM
UK Regulatory
TIDMSMS
RNS Number : 2945H
Smart Metering Systems PLC
24 March 2020
24 March 2020
Smart Metering Systems plc
COVID-19 Update
Smart Metering Systems plc (AIM: SMS, "SMS", "the Group"), which
installs and manages smart meters and carbon reduction assets to
facilitate effective energy management, is taking mitigating steps
to safeguard the welfare of its employees and clients as a result
of Covid-19.
With immediate effect, the Group has temporarily stopped all
non-essential field work which includes the installation of smart
meters until further notice. 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 index-linked annual recurring revenues
(ILARR) generated by these assets.
The Group has closed all its offices and warehouses, except for
activities required to support emergency field activity and IT
infrastructure which cannot be conducted remotely, with a majority
of the workforce continuing to work and support customers from
home.
SMS has also introduced increased protection measures to ensure
the health and wellbeing of its staff, supply chain, customers and
their consumers. This includes the establishment of COVID-19 Risk
Assessment procedures, the distributing of extra Personal
Protection Equipment (PPE), and strict social distancing guidelines
for all field and office-based employees who continue to work.
These measures, combined with the Group's IT infrastructure,
ensures it can continue to meet emergency works whilst reducing the
risks to an absolute minimum.
On 12 March 2020, the Group announced that it had conditionally
sold a minority of the Group's meter assets for a total gross cash
consideration of GBP291 million. On completion, the net cash
consideration of GBP282 million will be applied towards the
immediate repayment of amounts outstanding under the Group's
existing GBP420 million debt facility and will result in a positive
net cash position.
In addition, following completion of the disposal, the Group
will have retained ILARR of GBP73.2 million as at 29 February 2020,
all of which remains unaffected by the temporary measures being
taken. The COVID-19 situation is evolving rapidly and w hilst the
impact on the short-term financial performance of the business
cannot be accurately quantified at this time, the combination of
the Group's robust balance sheet, high-quality, index-linked
recurring revenue streams and a contracted order book of c.2
million smart meters ensures that the longer-term impact on the
Group will be minimal. SMS will continue to monitor the situation
and provide a further update as appropriate.
Alan Foy , Group CEO commented,
"The welfare of our employees and customers is paramount. We
therefore have taken these measures to mitigate the impact of
COVID-19 as much as possible.
"These are very difficult circumstances for everyone, but we
believe that the fundamental strengths and strategy of our business
will deliver success in the medium and long term."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Smart Metering Systems plc 0141 249 3850
Dilip Kejriwal, Head of Investor Relations
Cenkos Securities plc (Joint Broker 0131 220 6939 / 020 7397
and Nomad) 8900
Neil McDonald / Pete Lynch
Investec Bank plc (Joint Broker) 020 7597 5970
Christopher Baird / Henry Reast
Instinctif Partners 020 7457 2077
Adrian Duffield / Kay Larsen / Chantal
Woolcock
Notes to Editors
SMS plc (www.sms-plc.com) installs smart meters and data loggers
that facilitate effective energy management and a low carbon
future. Established in 1995, SMS provides a full end-to-end service
for metering financing, installation, management and maintenance,
with a highly skilled workforce and deep engineering expertise.
SMS's asset management business had 3.7million meter and data
assets under management as of 31 December 2019. SMS's smart meter
expertise also enables the Company to provide consultancy services
that allow organisations and corporates to enhance long term
efficiency and effectiveness in the management of energy.
SMS's energy management and asset installation services also
include infrastructure design, installation, consultancy and
project management services for new gas, electricity, water and
telecoms connections for licensed energy and telecoms suppliers,
end consumers and the UK's licensed electricity Distribution
Network Owners (DNOs). In addition SMS's FlexiGrid software
controls enables installed energy storage systems, renewable energy
sources and electric vehicle charging to be fully integrated into
the UK's energy systems shaping demand to follow renewable energy
supply.
SMS employs in excess of 1,200 people across the UK who support
the installation and ongoing management of metering assets.
SMS plc is headquartered in Glasgow with 12 locations across the
UK.
SMS's shares are listed on AIM.
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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