(Alliance News) - Smart Metering Systems PLC on Tuesday confirmed it intends to pay increased dividends through to the end of 2024, as it said it anticipates underlying profit for 2020 to be in line with expectations despite delays to the rollout of meters due to the Covid-19 pandemic.
The Glasgow-headquartered company - which is holdings its shareholder meeting on Tuesday - said it will pay a dividend of 25 pence for 2020 in four cash payments of 6.25p starting in October. Thereafter, it expects to increase its annual dividend in line with UK retail price index until the end of 2024.
Smart Metering said that as at May 31, its total index-linked annualised recurring revenue was GBP75.9 million, adding that as at the end of May, it had net cash of GBP48 million and GBP300 million of banking facilities. It said it is fully-funded to install its 2 million smart meter order book as well as additional meter opportunities.
Separately, the company said that, due to delays caused by the Covid-19 outbreak - which resulted in a temporary suspension of non-essential activities including smart meter installations from March 24 - the UK government has extended the smart meter rollout deadline by six months to July 1, 2025.
Smart Metering said its phased resumption of all field work has continued following the relaxation of lockdown restrictions, adding that it remains on track to deliver on its forecast for its smart meter roll out programme.
Miriam Greenwood will take over as chair from Willie MacDiarmid following the annual general meeting Tuesday.
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.
Shares in Smart Metering Systems were trading 1.9% lower at 567.00 pence each on Tuesday morning in London, but are 1.8% higher than at the start of the year.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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