The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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ticking over nicely results day
A 130% capital allowance would appear to be good news for sms for the next 2 years.....the sting in the tail is a CT hike to 25%(too high). Get those expensive CARE assets purchased ASAP.
'SMS has concluded an agreement to acquire a portfolio of c.15,000 I&C large power HH electricity meters for a cash consideration of £8.25 million....
...As part of the transaction, which is scheduled to complete in early April 2021, SMS will also take ownership of the data service contracts associated with over 20,000 meters, which will initially generate a further net £2 million of data annualised recurring revenue.
Alan Foy, Chief Executive Officer, commented:
"........In addition, the acquisition of the I&C Half Hourly meter portfolio is testament to the strength of SMS's data platforms, which enables the Group to consolidate such value accretive opportunities and further leverage its well-established infrastructure."'
This seems really positive. I've picked out the bits about data, which they don't seem to make much of. However it's nearly 2/3 of the revenue from the I&C HH acquisition. It looks like it will slot well into SMS's data service ie perhaps with very little outlay or ongoing cost. With meters, energy storage and data SMS seem to be in 3 very strong areas, each with strong streams of recurring revenue. I can't say I understand much about it, but they say data is the new oil...
PS.... and from a position of total ignorance I'm wondering if these large power meters will fit very neatly into opportunities to provide energy storage facilities, say at company level. Anyone know more about it?
Today’s budget should contain some green funding measures that can only help companies like SMS......waiting to hear what RS does.
Deal looks a good one.....you have to expect much of the revenue will fall straight through to the bottom line. If they get 50% margin, that s about 5x earnings.
Good to see they do still win meter work...they play at the smaller end of the market where there have been quite a few failures..
Nice update today
Calisen outlook seems fine
Yes, welcome. And then there were 3!
You are very welcome Deever. UKI2 and I look forward to you thoughts on the results in March.
It took me 3 years to buy in as I started watching after it hit 800 and then the problems with smart meters became quite political.
The SP has been quite volatile in 2020, but the partial sale of the installed book made a big difference and the company is cash positive rather than indebted to its book.
The battery and other care assets are crucial to improving margins as the meters must be becoming more competitively operated and there may be churn in suppliers as many of the smaller operators have ceased trading which presumably affects new installation flow.
I had these in mind to trade, but we will see how they go for a few updates before buying more.
Bought into this share earlier this week (before the announcement) and even though I rarely post was surprised by the lack of chat here. I think this is a sound company, which will continue to steadily grow over time with projects like these and pay a decent dividend. It’s staying in my portfolio for the foreseeable future. Good luck to everyone and looking forward to the update this month.