Completion of asset disposal and trading update

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 £291 million. The sale has now completed on schedule, with the Group having received net cash consideration after expenses of £282 million. The Group now has £45 million cash at bank and a fully undrawn £300 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 £75.8 million, after deducting £18.4 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 and  Nomad)	0131 220 6939 / 020 7397 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.

 

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