Smart Metering Systems ends year in line with expectations

Energy meter installer and manager Smart Metering Systems updated the market on its trading on Friday, reporting that its financial performance in 2019 was in line with current market expectations.

The AIM-traded firm said ttal index-linked annualised recurring revenue grew 20% to £90.1m.

It said its total meter and data assets under management grew 19% to 3.7 million, with its smart meter portfolio specifically growing 44% to 1,215,000 meters.

The board said the BEIS smart meter roll-out extension to December 2024 provided energy suppliers with greater flexibility going forward.

It explained that the roll-out profile was expected to be more evenly spread as a result, and with the proposed introduction of compulsory annual installation targets for energy suppliers.

Smart Metering Systems said it would continue to address the “significant” smart metering market opportunity, with a continued focus on securing long-term inflation-linked, sustainable revenue streams supported by an ongoing cost discipline, and efficient long-term capital structure.

“This year marks our 25th anniversary, a testament to SMS's secure business foundation and long-term business model,” said chief executive officer Alan Foy.

“Through our established industry-wide partnerships and strong integrated delivery platform we are committed to creating a resilient energy infrastructure for the future, focussed on delivering long-term value for all our stakeholders.

“SMS will continue to address the smart meter roll-out opportunity over the extended rollout period, with focus on securing long-term inflation-linked, sustainable revenue streams supported by an ongoing cost discipline and an efficient long-term capital structure.”

At 1446 GMT, shares in Smart Metering Systems were up 3.55% at 510.5p.