(Alliance News) - Smart Metering Systems PLC said on Friday that business has remained strong despite turbulence in the energy market, and predicted annual profit for 2021 will be ahead of expectations.
The smart meter and energy management company said its annual profit before tax will come in ahead of consensus for 2021, having been upgraded after its interim results in September.
SMS said its index-linked annual recurring revenue grew by 12% to GBP85.9 million for 2021 from GBP77.0 million in 2020, driven by domestic smart meters, data assets, and industrial & commercial meters, offset by a drop in revenue for traditional domestic meters and third party assets.
While some energy suppliers have failed in a tough market, the effect on SMS's pipeline has been negligible. The consolidation of some companies into larger ones has strengthened its customer base. Its pipeline rose from GBP2.0 million in December 2020 to around GBP2.55 million in December just past.
On December 31, the company had GBP118 million in net cash, reflecting internal cash generation and its GBP175 million equity fundraise proceeds.
"As we look at 2022, we remain confident with previously guided expectations for the year. We have a strong balance sheet thanks to our recent equity raise and organically-generated cash, and a growing smart meter and grid-scale battery pipeline," said Chief Executive Officer Alan Foy.
SMS also announced that Foy will step down as CEO on March 1. Tim Mortlock, chief operations officer since September 2019, will take his place.
SMS's share price was up 1.4% to 744.00 pence in London on Friday morning.
Full year results for 2021 will be announced on March 15.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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