Smart Metering Systems PLC Completion of asset disposal and trading update (5662K)
April 23 2020 - 2:00AM
UK Regulatory
TIDMSMS
RNS Number : 5662K
Smart Metering Systems PLC
23 April 2020
23 April 2020
Smart Metering Systems plc
Completion of asset disposal and trading update
Smart Metering Systems plc (AIM: " SMS", "Group"), which
installs and manages smart meters and carbon reduction assets
("CaRe") to facilitate effective energy management, announces the
completion of the minority assets disposal and a trading
update.
Completion of minority assets disposal
The Group announced on 12 March 2020 the conditional sale of a
minority of the Group's meter assets to Equitix for a total gross
cash consideration of GBP291 million. The sale has now completed on
schedule, with the Group having received net cash consideration
after expenses of GBP282 million. The Group now has GBP45 million
cash at bank and a fully undrawn GBP300 million RCF.
The Group's revised dividend policy is 25p dividend per share
for FY2020 and increasing at least in line with RPI p.a. until
FY2024. The Group intends to maintain a prudent net debt / EBITDA
ratio through the remainder of the roll-out and has flexibility in
funding further growth in a capital efficient way.
Trading update
At 1 April 2020 the total retained Index Linked Annualised
Recurring Revenue ("ILARR") was GBP75.8 million, after deducting
GBP18.4 million of I&C revenues as part of the completed
minority asset disposal.
The Group announced on 24 March 2020 that it has temporarily
stopped all non-essential field work which includes the
installation of smart meters until further notice, due to the
ongoing Covid-19 disruptions.
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 ILARR generated by these assets.
Despite Covid-19, the Group currently expects underlying
profitability and cashflows for FY20 to be in line with the Board's
earlier expectations.
Enquiries:
Smart Metering Systems plc 0141 249 3850
Dilip Kejriwal, 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 S MS @instinctif.com
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.
Cautionary Statement:
This announcement contains certain statements, statistics and
projections that are or may be forward-looking. The accuracy and
completeness of all such statements, including, without limitation,
statements regarding the future financial position, strategy,
projected costs, plans and objectives for the management of future
operations of Smart Metering Systems plc and its subsidiaries is
not warranted or guaranteed. These statements typically contain
words such as 'intends', 'expects', 'anticipated', 'estimates' and
words of similar import. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future.
Although Smart Metering Systems plc believes that the expectations
will prove to be correct. There are a number of factors, many of
which are beyond the control of Smart Metering Systems plc, which
could cause actual results and developments to differ materially
from those expressed or implied by such forward-looking statements.
This announcement contains inside information on Smart Metering
Systems plc.
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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