Smart Metering Systems (SMS) has announced proposals to raise approximately £175 million through a new share placing to investors, as it targets further growth.
The company currently has a contracted smart meter order pipeline of around 2.75 million meters, as well as a pipeline of 470MW of grid-scale battery projects, with a combined £690 million capital expenditure requirement over the next five years.
It recently secured a contract with Ovo Energy to provide services for the installation of at least 400,000 domestic smart meters.
The company said the fundraising, along with a combination of the group’s internally generated cash and recently increased £420 million debt facility, will help fund its pipeline.
SMS announced its proposals for the share placing yesterday (13 September) before publishing its half year results to 30 June 2021 this morning.
The company reported a five percent decrease in revenue to £51.7 million, down from £54.2 million from H1 2020.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were 22.4 million, down from £214.1 million in H1 2020 (a year which includes the financial performance of its disposed I and C portfolio up to 22 April 2020).
Miriam Greenwood, non-executive chair, said: “Our contracted smart meter order pipeline and pipeline of grid-scale battery projects represent significant growth opportunities for SMS, as the group continues to enable the UK’s transition to a low carbon energy economy. This next stage of SMS’ growth is expected to deliver attractive returns to our shareholders.
“Our recently increased £420 million debt facility demonstrates the significant support for our business model, and together with internally generated cash and this proposed fundraising, will enable SMS to invest in the substantial identified growth opportunities ahead and drive long term shareholder value.”