Smart Metering Systems PLC AGM update (7136Q)
June 23 2020 - 2:00AM
UK Regulatory
TIDMSMS
RNS Number : 7136Q
Smart Metering Systems PLC
23 June 2020
23 June 2020
Smart Metering Systems plc
AGM update
Smart Metering Systems plc (AIM: "SMS", "the Group"), which
installs and manages smart meters and carbon reduction assets
("CaRe(1) ") to facilitate effective energy management, has its AGM
later today and provides the following update regarding the Group's
trading and FY20 outlook, financial position and dividend
policy.
Trading and FY20 outlook
At 31 May 2020, the Group's total Index Linked Annualised
Recurring Revenue ("ILARR") was GBP75.9 million. Despite the
temporary cessation of meter installations caused by Covid-19, the
Group currently expects underlying profitability for the year to 31
December 2020 to be in line with the Board's earlier expectations,
reflecting the resilience of the SMS business model.
As previously announced on 1 June 2020, SMS has commenced a
phased and progressive resumption of all field work following a
temporary suspension of non-essential activities, including smart
meter installations, on 24 March 2020.
Financial position
As a result of lower installations since March 2020, the Group's
capex on smart meters has been lower than expected. Liquidity
remains strong, with a net cash position of GBP48m and GBP300m of
banking facilities at 31 May 2020.
SMS is fully funded to install its 2 million smart meter order
book as well as additional meter opportunities.
As announced on 17 March 2020, the partnership with Columbia
Threadneedle European Sustainable Infrastructure Fund ("ESIF") will
fund SMS's pipeline of opportunities in CaRe assets.
Dividend
The Group will implement its revised dividend policy, as
published on 17 March 2020:
-- SMS will pay 25p per share for the year to 31 December 2020
in four equal cash increments of 6.25 pence per share, starting in
October 2020.
-- The Group intends to increase dividends at least in line with
RPI every year until the end of FY2024. SMS's ILARR are also linked
to RPI and subject to "upwards-only" revision. This provides
downside protection to dividends against a deflationary
environment.
-- The dividends are well covered by existing long-term and recurring cash flow generation.
Government roll out deadline
The UK Government has extended the smart meter rollout deadline
by six months to 1 July 2025, taking into account delays as a
result of COVID-19. It has also introduced new annual installation
targets for individual energy suppliers, subject to an annual
tolerance level, rather than a single coverage target of 85%. These
changes are in line with SMS's planning expectations and have no
material impact on Group's forecasts for its roll out programme of
smart meters.
Chairman appointment
As previously announced, Miriam Greenwood will succeed Willie
MacDiarmid as Chairman after the AGM being held this morning. SMS
will publish results of the voting on the resolutions put to the
AGM later today.
(1) All carbon reducing assets including energy efficiency
systems, metering, lighting, battery storage, distributed
generation, EV charging, data and control, etc.
For further information:
Smart Metering Systems plc
Alan Foy, Chief Executive Officer
Dilip Kejriwal, Investor Relations 0141 249 3850
Cenkos Securities plc (Joint Broker
and Nomad) 0131 220 6939 / 020
Neil McDonald / Pete Lynch 7397 8900
Investec Bank plc (Joint Broker)
Christopher Baird / Henry Reast 020 7597 5970
RBC Capital Markets (Joint Broker)
Matthew Coakes / Evgeni Jordanov 020 7653 4000
Instinctif Partners
Adrian Duffield / Kay Larsen / Chantal
Woolcock 020 7457 2077
Notes to editors
SMS plc (www.sms-plc.com) installs and manages smart meters and
carbon reduction assets ("CaRe") to facilitate effective energy
management. 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 had 3.73 million 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).
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.
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END
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