Post-Close Trading Update

RNS Number : 9314V

Smart Metering Systems PLC

03 February 2017

 

Smart Metering Systems plc

("SMS" or "the Company")

Post-Close Trading Update

Smart Metering Systems plc (AIM: SMS.L), the integrated metering services company that installs, owns and manages utility metering assets, is pleased to provide the following update on trading in the year ended 31 December 2016.

The Company's continued investment in its gas and electricity metering portfolio saw the total number of assets under management increase by approximately 28% to 1.25m by 31 December 2016. This figure includes 51,000 gas and electricity domestic smart meters installed towards the end of 2016, in the new domestic smart meter market.

During 2016, SMS signed contracts for the installation and ownership of gas and electricity domestic smart meters with 8 energy suppliers who currently supply c. 2.5m consumers.

Total annualised recurring income increased by 20% to £41.3m as at 31 December 2016. In the Gas division, meter recurring rent grew by 13% to £31.48m, while data recurring income increased 17% to £2.58m. In the Electricity division, meter recurring rent more than doubled to £2.91m and data recurring income grew 26% to £4.33m.

Based on unaudited management accounts for the period, SMS expects that its results for the year to 31 December 2016 will be in line with current market expectations and these will be published late March 2017.

Alan Foy, Chief Executive Officer, commented:

"2016 has been a transformational year for SMS with the evolution of our business model into a fully integrated service provider, in line with the requirements of our customers. The success of this strategy has been evidenced by our continued delivery of year-on-year double digit growth on all our key metrics.

The domestic smart meter market continues to move apace and we have signed contracts with some of the fastest growing energy suppliers in the UK. "

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	020 7074 1800
Matthew Jervois
Daniel Holgersson

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. The Company provides a fully integrated service from beginning to end. The Company's services include the installation of a gas/electricity supply/connection, the procurement, installation and management of a gas or electricity meter asset, the collection and management of customer data and ongoing energy management services.

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. The Company is listed on AIM 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.

About UK Domestic Smart Meter Market

The domestic smart meters project is overseen by the Department for Business, Energy and Industrial Strategy and aims to install smart meters in all homes and small businesses across the UK by 2020.

While BEIS are responsible for the overall project management and monitoring, OFGEM are responsible for ensuring customers are protected during the installation phase. Capita has been appointed as the project manager for the data communications standards and Smart Energy GB (a Government funded body) are responsible for the communications campaign.

Market size and outlook

This initiative requires every home and small business in the UK to have smart or advanced meter functionality by 2020. This will require significant investment for rolling out and replacing approximately 22 million domestic gas meters and 27 million electricity meters.

Consumer benefits

Smart meters will help consumers to control their energy costs by showing how much is being used minute by minute and allowing savings to be made by turning off appliances which are not being used. It also means an end to estimated bills as with smart meters the bill will always be accurate and exactly what customers are expecting. The smart meter will also provide more accurate feedback to the energy companies on the level of demand which will make balancing the electricity system easier and cheaper.

 

END

 

 

TSTSSDFAEFWSEDE