Post-Close Trading Update

RNS Number : 5501D

Smart Metering Systems PLC

30 January 2015

 



Smart Metering Systems plc

Post-Close Trading Update

The Board of Smart Metering Systems plc (AIM: SMS.L) ("SMS" or the "Company"), the integrated metering services company that connects, owns, operates and maintains current generation and new advanced metering assets and databases, is pleased to provide the following update on trading in the year ended 31 December 2014.

SMS has continued to experience a strong performance across all segments of the business and, in particular, has seen growth in the installation of industrial and commercial meters together with increased adoption of its ADM™ device and has also established a new Electricity division.

The Company made significant progress across a number of business areas over the year. In the early part of 2014, the Company acquired Utility Partners Limited ("UPL"), an electricity metering business that provides connections, meters, data and energy services. This is now the business' new electricity division.

SMS also secured contract extensions or additions from a number of major customers, including a significant new contract with British Gas Business and the Electricity division won contracts with Opus Energy and DONG Energy Sales Limited, both existing customers of SMS' Gas division. In November 2014, the Company re-negotiated its £105m club facility to provide further funding flexibility.

The Company's continued investment in its gas meter portfolio saw the total number of gas meters under management increase by approximately 29 per cent to c. 607,000 by 31 December 2014, in line with management's expectations for the period.

SMS now has four recurring income streams, all of which grew sustainably in the 12 month period to 31 December 2014. In the Gas division, meter recurring rent increased 41% to £21.9m, while data recurring income reached £1m. In the Electricity division, meter recurring rent doubled to £567,000 and data recurring income grew 29% to £2.7m.

SMS has now deployed over 41,000 ADM™ devices and has been successful in receiving full accreditation for the water market in the UK. The Company remains confident that its ADM™ device technology has a broad range of potential applications in gas, electricity, water and LPG markets and has been continuing with trials of the device internationally, where SMS is particularly encouraged by recent progress.

Based on unaudited management accounts for the period, SMS expects that its results for the year to 31 December 2014 will be in line with current market expectations and these will be published in mid-to-late March 2015.

Alan Foy, Chief Executive Officer, commented:

"2014 was a landmark year for SMS and our growing team, completing a significant acquisition and with further contract wins. SMS is delighted to have operationally fully integrated our Electricity division following the acquisition of UPL in April 2014 and we are particularly positive on the outlook for its business in 2015. We can now offer our clients a full utility service and have both secured significant new contracts and renewed existing client relationships during the period. We remain focused on delivering our order book of meter exchanges and data business whilst fully positioning the business for the UK domestic smart meter roll out. The business is well positioned for continued growth in 2015."

For further information:

Smart Metering Systems plc	0141 249 3850
Alan Foy, Chief Executive Officer
Glen Murray, Finance Director
Cenkos Securities plc	0131 220 6939 / 0207 397 8900
Neil McDonald
Nick Tulloch
Kreab Gavin Anderson	020 7074 1800
Chris Philipsborn
Natalie Biasin
Matthew Jervois

Notes to Editors

About Smart Metering Systems

Established in 1995, Smart Metering Systems plc, based in Glasgow, connects, owns, operates and maintains metering systems and databases on behalf of major energy companies.

Currently the Company is concentrating its efforts on offering its unique integrated services to the UK industrial and commercial gas market in which its customers have an 80% market share.

The Company has further applications for gas with its ADM™ device which allows "smart" functions such as remote reading and half-hourly consumption data to be offered to customers in addition to the normal metering services.

SMS expanded its services into the electricity market through the acquisition of Utility Partnership Limited in April 2014. The Company can now provide a fully integrated service from beginning to end to cover the installation of a gas/electricity supply/connection to the procurement, installation and management of a gas or electricity meter asset to the collection and management of customer data and ongoing energy management services. Longer term the Company also has additional applications for water and LPG.

The Company was admitted to the AIM market in July 2011 and is now part of the FTSE AIM 50 index. For more information on SMS please visit the Company's website: www.sms-plc.com.

 

END

 

 

TSTSEIFWUFISEDF