Meter contract wins and I&C Half Hourly meter acquisition
Smart Metering Systems plc (AIM: "SMS", the "Group"), which installs and manages smart meters and carbon reduction assets ("CaRe") to facilitate effective energy management, announces two new domestic smart meter contract wins and the acquisition of Industrial and Commercial ("I&C") Half Hourly ("HH") electricity meters.
New domestic smart meter contract wins
SMS has entered into agreements with two of the fastest growing independent energy suppliers to provide services as an integrated domestic smart meter installer and Meter Asset Provider.
Under the terms of the agreements, which include a minimum contracted order commitment, SMS will fund and install domestic smart meters on behalf of the energy suppliers. These contract successes enhance SMS's contracted smart meter order pipeline to c2.5 million meters (31 December 2020: c2.0 million) and will, on delivery, add to the Group's existing portfolio of long-term indexed-linked annualised recurring revenues ("ILARR").
Acquisition of I&C HH electricity meter portfolio
SMS has concluded an agreement to acquire a portfolio of c.15,000 I&C large power HH electricity meters for a cash consideration of £8.25 million.
The assets have an average life of 4.6 years and will add £1.1 million meter rental to the Group's ILARR. As part of the transaction, which is scheduled to complete in early April 2021, SMS will also take ownership of the data service contracts associated with over 20,000 meters, which will initially generate a further net £2 million of data annualised recurring revenue.
"I am delighted with the addition of the fastest growing energy suppliers to our portfolio of contracted energy suppliers for the smart meter roll-out programme. These wins underpin our robust end-to-end integrated model and will further expand our long-term ILARR.
"In addition, the acquisition of the I&C Half Hourly meter portfolio is testament to the strength of SMS's data platforms, which enables the Group to consolidate such value accretive opportunities and further leverage its well-established infrastructure."Chief Executive Officer
For further information:
Smart Metering Systems plc
Alan Foy, Chief Executive Officer
Dilip Kejriwal, Head of Investor Relations
0141 249 3850
Cenkos Securities plc (Joint Broker and Nomad)
Neil McDonald / Pete Lynch
0131 220 6939 / 020 7397 8900
Investec Bank plc (Joint Broker)
Christopher Baird / Henry Reast
020 7597 5970
RBC Capital Markets (Joint Broker)
Matthew Coakes / Evgeni Jordanov
020 7653 4000
Kay Larsen / Sarah Hourahane / Hannah Campbell
Notes to Editors
Smart Metering Systems plc (www.sms-plc.com) installs and manages smart meters, data and carbon reduction assets ("CaRe") to facilitate effective energy management. The Group manages and optimises these assets through its in-house technology and data analytical platform.
Established in 1995, SMS provides a full end-to-end service, from funding and installation to management and maintenance, with a highly skilled workforce, deep engineering expertise and well-established industrial partnerships.
SMS is leading the low carbon, smart energy revolution in the UK and is committed to reducing its own carbon emissions to net zero by 2030. In 2019, SMS was also awarded the London Stock Exchange Green Economy Mark.
SMS plc is headquartered in Glasgow with a national presence across twelve UK locations.
SMS's shares are listed on AIM.