Glasgow-based Smart Metering Systems to benefit from smart meter deadline extension

Glasgow-based Smart Metering Systems (SMS) said it now expected its work to be “more evenly spread” after the UK government pushed back the deadline for energy suppliers to install smart meters to 2024.

Releasing a year-end trading update, the firm told investors that its 2019 financial performance was line with market expectations.

Total meter and data assets under management grew 19 per cent during the year to 3.7 million, while the firm’s domestic smart meter portfolio increased by 44 per cent to just over 1.2 million units.

The firm said it would continue to address the “significant smart metering market opportunity” with a focus on securing “long-term inflation-linked, sustainable revenue streams”.

SMS noted that total index-linked annualised recurring revenue had grown by a fifth to £90.1 million. Year-end net debt is expected to amount to some £220m, in-line with the board’s expectations, the firm added.

Chief executive Alan Foy said: “This year marks our 25th anniversary, a testament to SMS’s secure business foundation and long-term business model.

“SMS will continue to address the smart meter roll-out opportunity over the extended roll-out 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,” he added.

The group said it remained in talks regarding the sale of a minority of its meter assets, adding: “A further update on the possible sale will be provided as and when appropriate.”

Established in 1995, SMS installs and operates gas and electricity meters on behalf of major energy companies. It employs some 1,200 people.