Roll-out programme and finances on track at Smart Metering Systems
Glasgow-based Smart Metering Systems (SMS) has highlighted its “resilient” business model after assuring investors that its revenues and underlying profitability remain on track.
In a stock market update ahead of its first-half results on 15 September, the group said its smart meter installation programme was expected to return to pre-covid levels by the beginning of 2021. Its domestic smart meter portfolio of 1.27 million meters marks an increase of 54,000 in the first half.
The firm has an order book of a further two million meters with “additional metering opportunities” from its existing customer base.
Chief executive Alan Foy told investors: “Despite the unprecedented circumstances, our financial performance was strong, further demonstrating the resilient nature of our business, the defensive nature of the metering infrastructure asset class and the stable cash flows it generates.
“Our substantial contracted order book and strong liquidity position will allow SMS to roll out millions of smart meters over the next few years, thereby growing our index linked recurring revenues.
“In addition to delivering strong growth, the long-term cash generative nature of our business, coupled with SMS’ strong liquidity, supports the sustainable growth in our dividend, whilst continuing to maintain a prudent capital structure.”
The company has been at the forefront of the rollout of new smart meters to replace older non-connected devices though the governmentbacked programme has faced delays.
At the end of May, Smart Metering Systems outlined plans for a “phased and progressive” resumption of all non-essential field work after a Covid-related hiatus.