Smart Metering Systems describes 'strong' full-year performance

Smart Metering Systems (SMS), a company that installs and manages smart meters, energy data, grid-scale battery storage, and other carbon reduction (CaRe) assets, reported a strong full-year performance on Tuesday, with revenue up 25% to £135.5m.

The AIM-traded firm said its index-linked annualised recurring revenue (ILARR) for the 12 months ended 31 December was ahead 13% at £97.1m.

SMS's pre-exceptional EBITDA increased 21% to £63.8m year-on-year, while underlying profit before tax rose 34% to £24.5m.

The company's net debt at year-end totalled £31.2m, swinging from net cash of £117.7m in 2021.

SMS noted that it also had an undrawn debt facility of £355m, narrowing from £420m a year earlier.

The company declared a dividend of 30.25p per share, a 10% increase year-over-year, in line with its policy to 2024.

Its board said the dividend was covered by long-term, sustainable cash flows generated from existing assets.

Looking ahead, SMS said it was confident in its outlook, with 2023 pre-exceptional EBITDA expected to be marginally ahead of, and underlying profit before tax to be in line with previous expectations.

The board said the smart meter installation run-rate was expected to progressively improve throughout the rest of the year, as it continued to deliver and grow its grid-scale battery pipeline, with EBITDA contribution expected to be at least within the company's guided range.

“We have delivered another year of strong performance across all our key metrics,” said chief executive officer Tim Mortlock.

“This again highlights the attractiveness of our CaRe asset portfolio and the strong execution by our teams.

“The strong momentum in our meter and grid-scale batteries businesses provides us with confidence in our 2023 and longer term outlook - we will continue to deliver on our sustainable promises.”

Mortlock said the company also saw “significant” market opportunities to further accelerate its portfolio of CaRe assets, including electric vehicle charging infrastructure and ‘behind-the-meter’ solar and storage.

“Meeting the key challenges of energy security, affordability and sustainability - SMS is strongly positioned to provide the knowledge, engineering, data platforms and services behind the UK's move to net zero.”

At 1349 GMT, shares in Smart Metering Systems were down 0.49% at 815p.

Reporting by Josh White for Sharecast.com.