Trading Update

RNS Number : 4289X

Smart Metering Systems PLC

15 February 2012

 



15 February 2012

Smart Metering Systems plc

("SMS" or the "Group")

Trading Update

Smart Metering Systems plc (AIM: SMS.L), 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. Based on unaudited management accounts for the 12 months to 31 December 2011, the Group expects that its results will be ahead of current market expectations. The full year results will be published in mid-April 2012.

Financial Highlights

·     Strong trading performance for the year to 31 December 2011

·     Successful admission to trading on AiM and £10m of gross proceeds raised in July 2011

·     Increased lease finance facility made available by Clydesdale Bank plc in October 2011, extending the available facility from £12m to £19.5m

·     Revenue increased by 29% to £16m (2010: £12.4m)

·     Gross profit increased by 62% to £8.9m (2010: £5.5m)

·     Adjusted EBITDA* increased by 97% to £5.7m (2010: £2.9m)

*Excluding exceptional items

Operational Highlights

·     Gas meter portfolio increased to 254,000 at 31 December 2011, an increase of c.12% from IPO (at 30 June 2011; 227,000) and an increase of c.19% from the previous year (2010: 214,000)

·     Recurring meter rental income increased by 29% to £7.6m as of 31 December 2011 (2010: £5.9m)

·     £9.2m invested in meter assets during 2011

·     Successful trials of ADM smart metering device with major gas supplier customers

The Group continues to grow its revenue generating meter asset base from its existing gas supply customers in both the domestic and the industrial and commercial ("I&C") markets. As reported at the interim stage, D-ENERGI and Vayu Limited have been added as contracted customers bringing the total number of gas suppliers signed under service contracts for the operation and management of gas meters to 14. Trials have progressed successfully with the now fully "zone zero" accredited ADM automated meter reading device. The ADM solution offers our customers a substantially cheaper meter reading alternative to the current manual read services within the I&C market - a key incentive for gas suppliers to adopt the solution.

Alan Foy, Chief Executive Officer, commented:

"We are pleased to provide an update on trading for the last financial year ahead of market expectations. We have made solid progress since the flotation in July 2011 with investment in meter assets increasing and with the ADM device continuing to trial very successfully. We have also strengthened the senior management team and are confident of further growth during 2012."

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

Notes to Editors

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.

Longer term the company has further applications for water and LPG and has started trialling its new advanced metering system, the ADM™, which will allow "smart" applications such as remote reading and half hourly consumption data to be offered to customers in addition to the normal metering services.

The Company was admitted to the AiM market in July 2011, for more information on SMS please visit the Company's website: www.sms-plc.com

 

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