Operational Update

RNS Number : 5658Q

Smart Metering Systems PLC

21 October 2011

 

21 October 2011

Smart Metering Systems plc ("SMS")

Operational Update

Smart Metering Systems plc (AIM: SMS), the independent provider of gas infrastructure connection and gas meter asset management services, and a developer of advanced smart metering technology solutions, to the UK's key gas suppliers, is pleased to announce an operational update on performance since the 30 June 2011.

Highlights

·      Two new contracts signed for gas metering services bringing the total number to 12

·      An increase in meters under management of c. 8% since 30 June 2011

·      Increased leasing facilities to fund further meter purchases

Contracts and Meters under Management

SMS is pleased to announce that it has concluded contracts for the provision of gas metering services with UK Healthcare Corporation Limited, trading under the name D-ENERGI, and Vayu Limited.

This brings the total number of gas suppliers who have signed service contracts for the operation and management of gas meter assets with SMS to 12. These suppliers represent over 80% of the UK's industrial and commercial market and over 30% of the domestic market.  SMS currently manages in excess of 245,000 meter assets an increase of c8% since 30^th June 2011.

D-ENERGi provides gas and electricity to businesses in the UK and works predominately in the care home market, where they have helped hundreds of care home owners reduce one of their highest operating costs.  Their customers range from smaller individual care homes to larger care home groups and other specialised areas of business such as manufacturing, high end leisure sports & retail.

Vayu, backed by Glencore International AG, supplies gas and electricity to businesses and has a 20% market share of the large commercial and industrial gas sector in Ireland. Vayu has been licensed since 2008 to supply gas to non-domestic premises in Great Britain.

Both contracts are similar to existing contracts and include the provision, installation and maintenance of gas metering, automated meter reading and other ancillary equipment. 

Increased Leasing Facility

SMS is also pleased to announce that Clydesdale Bank PLC has agreed to extend the Master Lease Facility ("Lease Facility"), originally made available to SMS on 24 September 2010, by increasing the Lease Facility from £12,000,000 to £19,500,000.  The increased amount of £7,500,000 shall be available for drawdown until 12 October 2012.

SMS intends that the increased Lease Facility will be used to fund the purchase of further meter assets as and when the opportunity arises.

Alan Foy, Chief Executive Officer, Commented: "I am delighted with the increase in numbers of meters under management and the new contracts and it further illustrates the growing demand for our services in the industrial and commercial market. The increased facilities will help our business grow and assist us to take the opportunities quickly when they arise."

For further information, please contact:

Smart Metering Systems plc
Alan Foy, Chief Executive Officer Glen Murray, Finance Director	0141 249 3850
Cenkos Securities
Ken Fleming Jon Fitzpatrick	0131 220 6939 0207 397 8900
Kreab Gavin Anderson
Ken Cronin Anthony Hughes	020 7074 1800

 

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