New Banking Arrangements & Trading Update

RNS Number : 2830L

Smart Metering Systems PLC

21 December 2018

 

This includes inside information

Smart Metering Systems plc

("SMS" or "the Company")

New Banking Arrangements & Trading Update

New Banking Arrangements

Smart Metering Systems plc (AIM: SMS.L) ("SMS"), the integrated metering services company that installs, owns, operates and maintains UK metering assets, is pleased to announce that it has signed a new revolving credit facility with a syndicate of existing and new UK and international banks enabling drawings of up to £420m over the next 5 years.

This new facility, which replaces the existing £280m revolving credit facility, enables SMS to continue to deliver growth and fund long-term returns from domestic smart metering assets through the index-linked long-term recurring revenue generated by the metering portfolio under its' ownership.

The facility has been raised on similar commercial terms to the existing facility reflecting the established credit profile of SMS.

David Thompson, CFO of SMS, said: "We are delighted to have completed the refinancing of our credit facility. This refinancing will allow SMS to have significant additional financial capacity to take advantage of opportunities in the UK domestic smart meter roll-out to grow our recurring revenues."

Trading Update

As detailed in the Company's interim results, 2018 has seen an increase in capital investment in metering assets and growth in annual recurring revenues and trading performance. SMS is on track to close 2018 with results that are in line with full year market expectations.

We previously highlighted that the industry is currently progressing through a transition from the SMETs1 to SMETs2 protocol for smart meters and that the Board expects this transition to bring some operational challenges in the first half of 2019. SMS has a planned investment in its end-to-end customer delivery model, especially in line with recent exclusive contract awards, where we are mobilising additional staff and investing further in meter inventory in H1 2019.

The Company has made significant strategic investments in meter installation capacity over the last two years, and this will continue into 2019 as our market share continues to grow. SMS is now one of the largest installers of meter assets throughout the UK with a significant opportunity to continue our growth, delivering incremental index-linked long-term recurring revenue streams.

The Company anticipate providing a further trading update in February 2019.

For further information:

Smart Metering Systems plc	0141 249 3850
Alan Foy, Chief Executive Officer
David Thompson, Chief Financial Officer
Craig McGinn, Company Secretary
Dilip Kejriwal, Head of Investor Relations
Cenkos Securities plc	0131 220 6939 / 0207 397 8900
Neil McDonald
Beth McKiernan
Kreab	020 7074 1800
Matthew Jervois

Notes to Editors

About Smart Metering Systems

Established in 1995, Smart Metering Systems plc, headquartered in Glasgow, installs, owns, operates and maintains gas and electricity meters on behalf of major energy companies in the UK energy and utilities market.

The SMS Meter Assets business delivers long term stable income from ownership of over 2.5 million utility metering assets.

The SMS Asset Installation business installs gas and electricity meter assets for the Meter Asset business through engineering workforce across the UK.

SMS provide energy management and consultancy services to support large blue-chip companies in the UK, through a network of offices across the UK.

The 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 licenced energy and telecoms suppliers, end consumers and the UK's licenced electricity Distribution Network Owners (DNO's).

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.

Smart Metering Systems plc is listed on the AIM market of the London Stock Exchange (SMS)
Registered Office: 48 St. Vincent Street, Glasgow G2 5TS

Registered in Scotland number: SC367563
Legal Entity Identifier number: 213800FGOUFSDPE33S71

 

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