(Alliance News) - Smart Metering Systems PLC on Wednesday said it has secured a new meter contract plus an additional battery storage project.
The Glasgow-based provider of smart metering and energy management services said it has won a contract with a large energy supplier for the installation of at least 400,000 domestic smart meters.
Smart Metering Systems' said the new contract raises its smart meter order pipeline to 2.8 million meters, from 2.4 million on June 30.
Upon delivery, the contract will add an unspecified amount to the company's long-term indexed-linked annualised recurring revenues. This had totalled GBP84.2 million on June 30, up 9.3% from GBP77.0 million at the end of 2020.
In addition, the company has secured a new 50 megawatt grid-scale battery storage project, due to begin construction in the final quarter of 2022.
Smart Metering's battery storage pipeline now totals 240 megawatts, with 90 megawatts of storage currently under production and 100 megawatts due to begin production in the last quarter of 2021.
Before the addition of the new projects noted on Wednesday, the company's meter and battery pipelines were set to add a combined GBP70 million to the company's pre-exceptional earnings before interest, tax, depreciation and amortisation, which totalled GBP49.9 million in 2020.
In July, the company predicted underlying profit to remain in line with expectations as it continued to expand its smart meter order and grid-scale battery pipeline.
Chief Executive Alan Foy said: "Today's smart meter contract win, which follows two wins announced earlier this year, will further expand our long-term index-linked recurring revenues and leverages on the scalability of our well established end-to-end integrated model.
"Grid-scale batteries are critical to balancing the increasing volume of intermittent renewable generation and to further accelerate the adoption of renewables. Our long-standing experience in the design and delivery of large-scale electrical infrastructure projects and asset management positions us extremely well for this long-term attractive asset class."
Shares in Smart Metering Systems were trading up 0.5% at 940.76 pence each in London on Wednesday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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