Smart Metering Systems plc (AIM: SMS.L) is pleased to announce its final results for the 12 months to 31 December 2017, which show continued growth across all business areas.

Financial highlights

  • Revenue increased by 18% to £79.6m (2016: £67.2m)
  • Total annualised recurring revenue1 increased by 38% to £57.0m (2016: £41.3m)
    • Gas: meter recurring revenue increased by 15% to £36.1m (2016: £31.5m) and data recurring revenue increased by 15% to £3.0m (2016: £2.6m)
    • Electricity: meter recurring revenue increased by 283% to £11.2m (2016: £2.9m) and data recurring revenue grew 56% to £6.7m (2016: £4.3m)
  • Gross profit increased by 9% to £40.4m (2016: £36.9m)
  • Gross profit margin decreased by 4% to 51% (2016: 55%)
  • EBITDA increased by 19% to £38.8m (2016: £32.5m)
  • EBITDA margin increased by 1% at 49% (2016: 48%)
  • PBT decreased by 2% to £18.0m (2016: £18.2m)
  • Earnings per share decreased to 16.17p (2016: 17.33p)
  • *Pre-exceptional EBITDA2 increased by 22% to £40.3m (restated 2016: £33.0m)
  • *Underlying PBT2,3 increased by 7% to £22.2m (restated 2016: £20.7m)
  • *Underlying earnings per share4 increased to 19.93p (restated 2016: 19.66p)
  • Final dividend of 3.46p per ordinary share totalling 5.20p for the full year (2016: 4.10p), an increase of 27%
  • Net debt at 31 December 2017 was £36.5m (2016: £94.2m), with access to cash and undrawn facilities of £243.5m (2016: £55.8m)

* In 2017 the Board has taken the decision to change the presentation of the underlying performance measures to now include other operating income.  The Board believe this income is an integral feature of the replacement of meters, particularly prevalent during the current smart domestic rollout and will occur with greater regularity on an ongoing basis. All prior year underlying results have been restated in accordance with this new approach.
1 Recurring revenue refers to revenue generated by meter rental and data contracts. Annualised recurring revenue refers to the revenue being generated at a point in time.
2 Pre-exceptional EBITDA and underlying PBT figures are presented under our revised approach to include other operating income.
3 Underlying PBT is before exceptional items and intangible amortisation.
4 Underlying earnings per share is profit after taxation but before exceptional items 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 780,000 to just over 2.03 million under management at 31 December 2017 (2016: 1.25 million)
    • Total gas meter portfolio, including 3rd party management assets, increased by 45% to 1,273,000 (2016: 881,000), with industrial and commercial (I&C) meters increasing by 14% to 163,000 (2016: 143,000). Gas data portfolio increased by 17% to 126,000 (2016: 108,000)
    • Total electricity meter portfolio increased by 301% to 309,000 (2016: 77,000). Electricity data portfolio increased by 74% to 323,000 (2016: 186,000)
  • ADM™ installations up 13% to 103,000 units at 31 December 2017 (2016: 91,000)
  • Capital expenditure on revenue generating assets was £122.8m (2016: £42.5m)

“2017 has been a year of investment in our business – building capacity to grow and deliver for our customers, particularly in the domestic smart meter rollout.

We enter 2018 with a solid financial platform and are well positioned to continue making progress in our core markets.”

Alan Foy Chief Executive Officer

Download full results (PDF)

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For further Information:

Smart Metering Systems plc
Alan Foy, Chief Executive Officer
David Thompson, Chief Financial Officer
Craig McGinn, Company Secretary
0141 249 3850

Cenkos Securities plc
Neil McDonald
Beth McKiernan
0131 220 6939 / 0207 397 8900

Matthew Jervois
Daniel Holgersson
020 7074 1800