Smart Metering Systems trades in line despite Covid-19 impact

Energy management firm Smart Metering Systems said on Tuesday that full-year underlying profits were expected to be in line with earlier expectations, despite being forced to temporarily cease installations as a result of the Covid-19 pandemic.

Smart Metering Systems, which has now commenced a phased and progressive resumption of all fieldwork, stated that lower installations had resulted in capex on said devices being lower than expected.

Liquidity was said to have also remained strong, with a net cash position of £48m and £300m of banking facilities as at 31 May.

The AIM-listed firm also highlighted that the UK Government had extended its smart meter roll-out deadline by six months to 1 July 2025, taking into account delays as a result of the pandemic, and has also introduced new annual installation targets for individual energy suppliers rather than a single coverage target of 85%.

"These changes are in line with SMS's planning expectations and have no material impact on group's forecasts for its roll out programme of smart meters," said the firm.

In terms of dividends, SMS said it would make four equal cash payments in increments of 6.25p per share for 2019, starting in October 2020. It added that dividends were well covered by existing long-term and recurring cash flow generation.

As of 0900 BST, SMS shares had inched back 0.35% to 576p.