04/04/2019

Smart Metering Systems plc (AIM: SMS.L) is pleased to announce its final results for the 12 months to 31 December 2018, which show continued underlying business growth.

Financial highlights

  • Revenue increased by 24% to £98.5m (2017: £79.6m)
  • Total annualised recurring revenue1 increased by 32% to £75.3m (2017: £57.0m)
    • Gas: meter recurring revenue increased by 19% to £42.9m (2017: £36.1m) and data recurring revenue increased by 6% to £3.13m (2017: £2.96m)
    • Electricity: meter recurring revenue increased by 81% to £20.3m (2017: £11.2m) and data recurring revenue grew 34% to £9.0m (2017: £6.7m)
  • Pre-exceptional EBITDA1 increased by 28% to £51.6m (2017: £40.3m)
  • Underlying PBT1 increased by 13% to £25.1m (2017: £22.2m)
  • Gross profit increased by 3% to £41.5m (2017: £40.4m), with gross margin decreasing by 9% to 42% (2017: 51%)
  • Exceptional items of £17.1m (2017: £2.0m), reflecting the reduced carrying value of meter assets, predominantly in the Group’s traditional meter portfolio
  • Statutory EBITDA decreased by 9% to £35.5m (2017: £38.8m), with statutory EBITDA margin decreasing by 13% to 36% (2017: 49%)
  • Statutory Profit before tax decreased by 70% to £5.4m (2017: £18.0m)
  • Underlying earnings per share1 decreased to 18.46p (2017: 19.93p) and statutory earnings per share decreased to 3.97p (2017: 16.17p)
  • Final dividend proposed of 3.98p per ordinary share totalling 5.98p for the full year (2017: 5.20p), an increase of 15%
  • Net debt at 31 December 2018 was £142.0m (2017: £36.5m), with access to cash and undrawn facilities at 31 December 2018 of £138.0m (2017: £243.5m), increasing to £277.0m on 3 January 2019

1 Refer to the Financial Review for definitions and details on the Group’s alternative performance measures, which includes annualised recurring revenue, pre-exceptional EBITDA, underlying PBT and underlying earnings per share.

Operational highlights

  • Total gas and electricity metering and data assets increased by 1.1m to 3.13 million under management at 31 December 2018 (2017: 2.03 million)
    • Total gas meter portfolio, including third-party management assets, increased by 65% to 2,106,000 (2017: 1,273,000), with industrial and commercial (I&C) meters increasing by 6% to 173,000 (2017: 163,000). Gas data portfolio increased by 4% to 131,000 (2017: 126,000)
    • Total electricity meter portfolio increased by 78% to 552,000 (2017: 309,000). Electricity data portfolio increased by 7% to 345,000 (2017: 323,000)
  • ADM™ installations up 2% to 105,000 units (2017: 103,000) with international trials continuing
  • Capital expenditure on revenue-generating assets was £128.2m (2017: £122.5m)
  • Over 30,000 hours of engineer training delivered in 2018
  • First dedicated smart metering training facility in the UK established and the facilitation of a test lab to assist with DCC SMETS2 readiness
  • Employed 964 people at 31 December 2018 and reached the milestone of becoming a living wage employer
  • Recognised by the Office of Low Emission Vehicles (OLEV) as an accredited installer of electric vehicle charging points for the government’s Workplace Charging Scheme (WCS)

"2018 has been a year of continued investment and growth, and I am especially pleased with the way in which we have brought our end to end solutions to the UK’s energy suppliers shown by the significant contract wins announced in the last 6 months. 

Building long term partnerships with our customers is key to our success.  We enter 2019 with a strong order book and are well positioned to continue making progress in our core markets."

Alan Foy Chief Executive Officer

Download full results (PDF)

Download presentation (PDF)

For further information:

Smart Metering Systems plc
Alan Foy, Chief Executive Officer
David Thompson, Chief Financial Officer
Craig McGinn, Company Secretary
Dilip Kejriwal, Head of Investor Relations
0141 249 3850

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

Kreab
Matthew Jervois
020 7074 1800

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