Smart Metering Sys - Trading update
27/07/2022 07:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220727:nRSa8194Ta&default-theme=true
RNS Number : 8194T Smart Metering Systems PLC 27 July 2022
27 July 2022
Smart Metering Systems plc
Trading update
Smart Metering Systems plc (AIM: "SMS", the "Group"), which installs and
manages smart meters, energy data, grid-scale battery storage and other carbon
reduction ("CaRe") assets, provides a trading update announcement.
Key points
· ILARR((1)) grew 8% to £93.1m at 30 June 2022 (31 December 2021:
£85.9m)
· Meter and data assets
· smart meter portfolio increased to 1.9m at 30 June 2022 (31
December 2021: 1.7m)
· secured a new smart meter contract win adding c.0.1m meters to
the pipeline
· smart meter order pipeline of c.2.42m((2)) at 30 June 2022 (31
December 2021: c.2.55m)
· continued growth in smart meter installation rates; no impact on
meter supply
· Grid-scale battery pipeline
· first 50MW performing well ahead of management expectations
· total pipeline increased to 760MW((3)) at 30 June 2022 (31
December 2021: 620MW)
· Continued progress in other CaRe products and services including
recent strategic investments in EV charging infrastructure and energy data
management
· Net cash position at 30 June 2022 was £38.6m
· FY 2022 underlying EBITDA and PBT expected to be marginally ahead
of previous expectations; confident in 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:
"The global energy market has changed rapidly over the last few months. The
requirement for a low carbon, flexible and secure energy system has never been
greater or more acute.
Our purpose is to facilitate a lower cost, lower carbon energy future. Our
carbon reduction (CaRe) assets, managed by our in-house technology platform
METIS, have helped consumers manage their energy bills throughout this
difficult period.
Our two recent strategic investments in EV charging infrastructure and energy
data are complementary to our existing end-to-end business model and enhance
our ability to accelerate other CaRe products and services.
The defensive nature of smart meters, combined with our long-term index-linked
cash flows has seen SMS demonstrate strong financial and operational
resilience throughout the pandemic, energy market volatility and recent
geopolitical upheaval. Our existing pipeline of meter assets and grid-scale
battery storage assets alone is well on track to hit our medium-term growth
expectations, with significant additional opportunities for growth in our
established CaRe asset classes and in developing CaRe products and services."
(1) Index-linked annualised recurring revenue
(2) c.0.1m contract win offset by meter installs in H1 2022
(3) 760MW pipeline includes the 50MW operational Burwell site
Index-linked annualised recurring revenue
Total meter and data asset ILARR was £93.1m at 30 June 2022, representing
growth of 8%, which includes the annual RPI adjustment (+4.3% applied on 1
April 2022) (31 December 2021: £85.9m).
Category % change ILARR Details
Domestic smart meters + 15% £57.4m 1.9 million smart meters
Data assets + 13% £15.7m 0.5 million data assets
I&C meters + 10% £5.1m 0.1 million I&C meters
Traditional domestic meters - 1% £11.6m Traditional meters to be exchanged for smart over the UK smart meter rollout
programme
Third party assets - 39% £3.3m Industry appointment to third party owned meters (traditional). Now excludes
£2.2m of pass-through third-party rental
Meters
The meter installation run-rate continued to strengthen, in line with the
Group's expectations. 230,000 smart meters were installed during H1 2022, with
Q2 2022 average monthly run-rate at more than 40,000 meters (FY 2021: c.30,000
meters average per month). Our total smart meter portfolio increased to 1.9m
as a result. We have a resilient diverse supply chain in place and the meter
stock within our UK warehouses to support this continued run-rate. We expect
to install at least 450,000 smart meters during FY 2022.
The smart meter order pipeline was c.2.42m at 30 June 2022 (31 December 2021:
c.2.55m), net of smart meter installations during H1 2022 and including a new
smart meter contract win of c.0.1m.
Grid-scale batteries
The Group's first site (Burwell, 50MW) commenced trading at the end January
2022 and accessed all revenue streams from 1 March 2022. Thus far, the
majority of the revenues have been generated from the provision of frequency
services, such as Dynamic Containment. The site's current performance is well
ahead of the Board's expectations, equivalent to an annualised EBITDA
contribution of £0.1m/MW.
SMS also has 330MW of fully secured grid-scale battery projects, of which
190MW is currently in construction including 40MW now energised and entered
commissioning. A further 380MW is under exclusivity, giving a total pipeline
of 760MW at 30 June 2022.
FY 2022 outlook
The FY 2022 underlying profitability is expected to be marginally ahead of the
Board's previous expectations, and we are confident in the medium term
outlook.
SMS expects to publish its first half results on 13 September 2022.
For further information:
Smart Metering Systems plc 0141 249 3850
Tim Mortlock, Chief Executive Officer
Gavin Urwin, Chief Financial Officer
Dilip Kejriwal, Head of Investor Relations
Cenkos Securities plc (Joint Broker and Nomad) 0131 220 6939 / 020 7397 8900
Neil McDonald / Pete Lynch
Investec Bank plc (Joint Broker) 020 7597 5970
Christopher Baird / Henry Reast
RBC Capital Markets (Joint Broker) 020 7653 4000
Matthew Coakes / Evgeni Jordanov / Jack Wood
Instinctif Partners sms@instinctif.com (mailto:sms@instinctif.com)
Tim Linacre / Guy Scarborough / Sarah Hourahane
Notes to Editors
Smart Metering Systems plc (www.sms-plc.com (www.sms-plc.com) ) is a fully
integrated energy infrastructure company owning and managing meter assets,
energy data, grid-scale batteries and other carbon reduction (CaRe) assets.
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.
This information is provided by RNS, 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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
. END TSTBKABQPBKDQOB