(Sharecast News) - Smart Metering Systems reported a 6% improvement in its index-linked annualised recurring revenue in 2020 on Tuesday, to £77m.
The AIM-traded firm said pre-exceptional EBITDA was down 15% year-on-year to £49.9m, reflecting the effect of its minority asset disposal, completed in April.
Underlying profit before tax fell 2% to £15.2m, which the board also put down to the effect of the minority asset disposal.
Excluding the effect of that disposal, Smart Metering said it experienced growth in underlying profitability on a like-for-like basis in the year ended 31 December.
Net cash at year-end stood at £40.2m, swinging from net debt of £219.2m at the end of 2019.
Looking at the minority asset disposal, the company sold 187,000 industrial and commercial meter assets, with a weighted average age of 4.7 years.
It received gross cash proceeds of £290.6m from the disposal, with a £194.7m net gain on the disposal reported for the year.
The board proposed a 25p per share dividend for 2020, paid in four instalments starting October 2020.
It also confirmed its intention to increase the distribution by 10% per year until 2024, with a 27.5p dividend per share targeted for 2021.
The payments would be covered by long-term index-linked cash flows from its existing metering and data asset base.
On a statutory basis, Smart Metering reported a fall in group revenue to £109.98m, from £114.28m, while its EBITDA rocketed to £231.63m from £50.37m.
Underlying basic earnings per share slipped to 9.56p from 11.3p, while statutory basic earnings per share rose to 25p from 6.88p.
"We have delivered financial results ahead of market expectations in an unprecedented year, demonstrating the strength of our business model," said chief executive officer Alan Foy.
"Since the end of the year we have won new meter contracts, secured rights to an additional 100MW of grid-scale battery storage projects and purchased an industrial and commercial portfolio that will benefit from our end-to-end industry systems.
"These achievements are testament to Smart Metering Systems' ability to leverage its well-established platform and infrastructure, and to support continuing growth, with significant additional opportunities in carbon reduction assets."
Foy said the Covid-19 pandemic had "accelerated" the urgency to decarbonise, decentralise and digitalise the UK's energy systems.
"For over 25 years Smart Metering has played a pivotal role in UK energy and is now well positioned to transform the economy towards net zero.
"SMS itself has committed to achieving 'net-zero' carbon emissions by 2030, two decades ahead of the UK's own 'net-zero' target."
At 1106 GMT, shares in Smart Metering Systems were up 2.25% at 771p.
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