Smart Metering Sys - Trading Update
18/01/2024 07:00
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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 £113.4m at 31 December 2023, which
includes the annual RPI adjustment. This represents a 16.8% increase since the
prior year end (31 December 2022: £97.1m).
Category % change ILARR Portfolio
Smart meters + 24.4% £76.0m 2.5 million
Data assets - 0.6% £15.9m 0.5 million
Industrial & Commercial meters + 18.9% £6.3m 0.1 million
Traditional domestic meters + 4.5% £11.7m 0.2 million
Third party assets flat £3.5m 1.3 million
Total + 16.8% £113.4m 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.£46,000/MW (FY 2022: c.£123,000/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.£57,000 - £65,000/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
£171.9m.
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 and Nomad) 0131 220 6939 / 020 7397 8900
Neil McDonald / Peter Lynch / Adam Rae
Investec Bank plc (Joint Broker) 020 7597 5970
Henry Reast / James Rudd / Shalin Bhamra
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
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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