(Alliance News) - Smart Metering Systems PLC on Thursday said it expects profitability and cash flow for 2020 in line with previous expectations despite the Covid-19 pandemic, as it announced the completion of the sale of some of its metering assets.
Smart Metering said it has completed the sale of a minority of its metering assets for GBP291 million. In March, the company announced the sale of the UK assets to funds managed by investment company Equitix Investment Management Ltd. Net cash after expenses is expected to be GBP282 million.
At the time, Smart Metering said the sale will allow it to implement a long-term, sustainable dividend payment policy and will result in a "significant" reshaping of its capital structure. The company proposed a dividend of 25 pence for 2020, with the payout expected to increase in line with UK retail price index until 2024. It confirmed that payout plan on Thursday.
The company said that, as at April 1, its total retained index-linked annualised recurring revenue was GBP75.8 million. It added that it currently has cash of GBP45 million and an undrawn revolving credit facility of GBP300 million.
Separately, Smart Metering said Willie MacDiarmid will step down as non-executive chair after the company's next annual general meeting in June.
MacDiarmid - who has held the role for six years - will be succeeded by Senior Independent Non-Executive Director Miriam Greenwood, who has been on the board since 2014. Graeme Bissett will replace Greenwood as senior independent non-executive director.
"On behalf of the board and everyone at Smart Metering Services, I would like to thank Willie for his considerable contribution over the past six years. Throughout his tenure as chair, he has provided the board with wise leadership and strategic counsel," said Greenwood.
The company also said it has hired Jamie Richards as a non-executive director effective immediately. After the annual general meeting, he will become chair of the remuneration committee.
Richards is currently a non-executive director at investment trust US Solar Fund PLC. He was a partner and head of infrastructure at Foresight Group for 18 years, said Smart Metering, adding that he has 25 years of experience in fund management, and has previously worked at accounting firm PricewaterhouseCoopers, Citibank, part of Citigroup Inc, and Macquarie Group Ltd.
"I would like to welcome Jamie. He brings considerable expertise and experience in the infrastructure and solar sectors. It will be invaluable as we execute on our smart meter rollout programme and, importantly, look to grow our investment in carbon reducing assets to create value for all our stakeholders," Greenwood added.
Smart Metering shares were trading 4.2% higher at 604.00 pence each on Thursday afternoon in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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