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.
"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."CFO of SMS
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
Alan Foy, Chief Executive Officer
David Thompson, Chief Financial Officer
Craig McGinn, Company Secretary
Dilip Kejriwal, Investor Relations
0141 249 3850
Cenkos Securities plc
0131 220 6939 / 0207 397 8900
020 7074 1800