Smart Metering Systems secures £420m credit facility

Smart Metering Systems (SMS) on Friday 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 five years.

The company said the new deal, which replaces an existing £280m revolving credit facility, enables it 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 portfolio under its ownership.

David Thompson, chief financial officer of SMS, said: "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."

Meanwhile, the AIM-traded company said it is on track to finish the year with results in line with expectations after experiencing an increase in capital investment in metering assets, as well as growth in annual recurring revenues and trading performance.

However, a statement from SMS said the company expected some challenges in the new year due to a transition from the SMETs1 to SMETs2 protocol for smart meters, leading the company to invest in additional staff and meter inventory for the first half of next year.

SMS’s shares were down 0.38% at 524.00p at 1203 GMT.