Smart Metering maintains forecast after strong recent trading
By Josh White
Date: Thursday 19 May 2022
(Sharecast News) - Smart Metering Systems reported a strong recent performance in a trading update on Thursday, with index-linked annualised recurring revenue (ILARR) growing to £91.4m as at 30 April from £85.9m on 31 December.
The AIM-traded firm said that included the annual inflationary adjustment, which was applied on 1 April.
Looking at its smart meter installations, the company said the run rate had strengthened in line with its expectations, with further improvement anticipated over the course of the year.
On its grid-scale battery operations, Smart Metering reported a "strong" performance, combined with continued growth of the pipeline to 710MW, from 620MW at the end of December.
Of the total pipeline, the first operational 50MW started trading in January and had performed strongly to date.
The board said the majority of revenues generated had been from the frequency service, dubbed 'Dynamic Containment'.
Of the additional pipeline, a 40MW project was expected to begin trading in the third quarter, with a total of 260MW now fully secured, of which 150MW was currently in construction.
Another 360MW of sites were under exclusivity.
Financially, as at 30 April, the group's liquidity remained "strong", with £63.3m of cash in hand, down from £117.7m at the end of December.
Smart Metering also had undrawn banking facilities of £420m, in line with the end of 2021.
"The board's expectations for 2022 financial year underlying profitability remain unchanged," the company said in its statement.
At 1204 BST, shares in Smart Metering Systems were down 1.18% at 837p.
Reporting by Josh White at Sharecast.com.
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