29/01/2016

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 in the year ended 31 December 2015.

SMS experienced continued growth in trading performance across all segments of the business in 2015, its 20th anniversary year, with double digit growth in all income streams. Significantly, the Company has also announced a number of new contract wins in the domestic smart meter market since the period end.

The Company’s continued investment in its gas meter portfolio saw the total number of gas meters under management increase by approximately 21% to 734,000 by 31 December 2015, with notable growth in the second half of the year.

Total annualised recurring income increased to £34.55M as at 31 December 2015. In the Gas division, meter recurring rent grew by 27% to £27.8m, while data recurring income increased 110% to £2.1m. In the Electricity division, meter recurring rent increased 129% to £1.25m and data recurring income grew 25% to £3.4m.

SMS has now deployed over 74,000 ADM™ devices and has been successful in receiving full accreditation for the water market in the UK. From 1 April 2017 non-household water customers will be able to change their water supplier and advanced metering solutions are expected to play a significant role in enabling the development of a competitive market in water supply.

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. Together, they supply 386,000 homes and are part of the fastest-growing segment of the retail energy supply market. The Company is well positioned to continue gaining market share in the roll out of the Government’s domestic smart meter programme, which is overseen by the Department of Energy and Climate Change.

Based on unaudited management accounts for the period, SMS expects that its results for the year to 31 December 2015 will be in line with current market expectations and these will be published in mid-to-late March 2016.

 

“2015 has seen continued growth and expansion of our core business. We are delighted with another strong period of trading during our 20th anniversary year. The business consistently delivers year-on-year double digit growth and has an established and growing market position. Along with the significant opportunities available to SMS in the domestic smart meter market, we will continue to focus on building out our order book in the I&C market and we remain confident in our outlook for the business and market development in 2016.”

Alan Foy Chief Executive Officer

For further information:

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 
Chris Philipsborn
Daniel Holgersson

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