Smart Metering Systems plc (AIM: SMS.L) is pleased to announce its final results for the 12 months to 31 December 2015, which show continued growth across all business areas.

Financial Highlights
  • Revenue increased by 27% to £53.9m (2014: £42.4m)
  • Total annualised recurring income* increased by 33% to £34.73m (2014: £26.2m)
    • Gas: meter recurring rent increased 27% to £27.8m (2014: £21.9m) and data recurring income more than doubled to £2.2m (2014: £1.0m)
    • Electricity: meter recurring rent doubled to £1.25m (2014: £0.6m) and data recurring income grew 28% to £3.45m (2014: £2.7m)
  • Gross profit increased by 32% to £36.5m (2014: £27.6m)
  • Gross profit margin at 68% (2014: 65%)
  • Underlying EBITDA** increased by 38% to £26.3 (2014: £19.1m)
  • Underlying PBT** increased by 38% to £17.4m (2014: £12.6m)
  • EBITDA** margin at 49% (2014: 45%)
  • Underlying earnings per share*** increased 67% to 17.46p (2014: 10.46p)
  • Final dividend of 2.2p per ordinary share making 3.3p for the full year (2014: 2.82p), an increase of 17%

* Recurring revenue refers to revenue generated by meter rental and data contracts. Annualised recurring income refers to the revenue being generated at a point in time.
** Underlying PBT & EBITDA is before deduction of exceptional items, other operating income and intangible amortisation.
*** Underlying earnings per share is profit after taxation but before exceptional items, other operating income and intangible amortisation, divided by the weighted average number of ordinary shares in issue.

Operational Highlights
  • Total Gas and Electricity metering and data assets increased by 211,000 to just under 1 million under management at 31 December 2015 (December 2014: 768,000)
    • Total gas meter portfolio increased by 19% to 723,000 (December 2014: 607,000), with industrial and commercial (“I&C”) meters increasing by 75% to 114,000 (December 2014: 65,000). Gas data portfolio increased by 107% to 85,000 (December 2014: 41,000)
    • Total electricity meter portfolio increased by 142% to 29,000 (December 2014: 12,000). Electricity data portfolio increased by 31% to 142,000 (December 2014: 108,000)
  • ADM™ installations up 80% to 74,000 units at 31st December 2015 (December 2014: 41,000) with international trials continuing
  • Capital expenditure on meters increased by 15% to £41.2m, reaching a monthly run rate of approximately £3.5m in December 2015
  • Celebrated 20 years in operation in June 2015 and first anniversary of the integration of the electricity business, having acquired UPL in April 2014, now SMS ES
  • Completed rebranding of the business in June 2015, bringing all group subsidiaries under the single SMS brand, setting out a simplified integrated gas, electricity and dual fuel offering to clients
  • Strong start to 2016 with new agreements and acquisitions:
    • With the opening of the domestic smart meter market, SMS signed five framework agreements with independent energy suppliers including RHE, Green Energy, Flow Energy, Spark Energy and Our Power
    • Strategic acquisitions of meter installation suppliers, CH4 Gas Utility and Maintenance Services Limited and Trojan Utilities Limited, and IT specialists, Qton Solutions Limited


 “2015 has been another successful year with substantial progress across all segments of the business. As we celebrate 20 years in operation, SMS has again recorded double-digit growth. During the year we completed the rebranding of the business, bringing all group subsidiaries under the single SMS brand, setting out a simplified integrated gas and electricity offering to clients with the integration of UPL now complete.

We remain focused on the continued expansion of our core business while also pursuing the significant opportunities available to SMS in the domestic smart meter market. 2016 has started well with the signing of five new domestic smart meter agreements along with three important strategic acquisitions to control our installation capacity in our markets. We remain confident in our outlook for the business and market development in 2016.”

Alan Foy Chief Executive Officer

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 
Natalie Biasin 
Daniel Holgersson

Full Announcement