New Banking Arrangements and ADMT Update

RNS Number : 1629J

Smart Metering Systems PLC

02 August 2012

 



02 August 2012

Smart Metering Systems plc

("SMS" or "the Company")

New Banking Arrangements and ADM™ Update

New Banking Arrangements

Smart Metering Systems plc (AIM: SMS.L), is delighted to announce a new banking club arrangement with three major UK banks.

The £45 million facility effective as of August 1, with Barclays Bank PLC (lead bank), Clydesdale Bank PLC and  Lloyds Bank PLC, replaces the existing arrangement with Clydesdale Bank PLC, originally made available for £12 million in September 2010 (with a subsequent increase of £7.5 million in October 2011) and a current outstanding amount of £10.6 million.

Following on from the substantial, recently announced contracts, and acceleration in organic growth, SMS intends to use the new facility to fund the purchase of meter assets during a phased installation over the course of the next 24 months.

The facility is a revolver structure over 24 months, repayable equally over 10 years with a 5 year break. Interest is applied to the outstanding balance only. The Company's current interest rate swap and cap arrangements will be terminated and replaced with similar beneficial arrangements on broadly the same basis.

ADM™ Update

The Company is also delighted to announce that it has recently received Full European Patent Approval for its ADM™ device, which will come into effect on 15th August 2012 and will protect the Company's intellectual property in this important market.

Whilst the major gas suppliers continue to be its primary focus, SMS is beginning to see demand from the energy broker and energy management services sector where there is an increasing requirement from end consumers for an AMR (automated meter reading) solution. To that end SMS has contracted with BIU, Ener-G, Utility Aid and Solis Consulting as their preferred AMR and meter exchange provider using the ADM™ device. Additionally, SMS has continued to contract with new entrant gas supply companies and announces it has added Axis for Business as a customer for the supply of the ADM™ device and a meter exchange programme over the next 3 years, again as its preferred supplier.

Alan Foy, Chief Executive Officer, commented:

"I am delighted in the substantial interest shown by the UK banking community in what was a highly competitive process. The Company was able to negotiate a substantial increased facility with extremely good rates. The revolver structure, remaining cash proceeds from our IPO last year and cash generated from operations provide the Company with over £55 million to invest in metering assets over the next 24 months. The new facility will underpin the recent contracts we have announced and assist us to continue to grow the business.

"We are also very pleased  with obtaining full European patent approval and the continued adoption of the ADM™ solution in the secondary market and whilst we remain focussed on our core customers and the major gas suppliers these are further steps in establishing the ADM™ as the industry standard AMR solution. "

For Further Information:

Smart Metering Systems plc Alan Foy, Chief Executive Officer Glen Murray, Finance Director	0141 249 3850
Cenkos Securities Ken Fleming Jon Fitzpatrick	0131 220 6939 / 0207 397 8900
Kreab Gavin Anderson Ken Cronin Anthony Hughes	020 7074 1800

Notes to Editors

About Smart Metering Systems

Established in 1995, Smart Metering Systems plc based in Glasgow, connects, owns, operates and maintains metering systems and databases on behalf of major energy companies. 

Currently the Company is concentrating its efforts on offering its unique integrated services to the UK industrial and commercial gas market in which its customers have an 80% market share.

The company has further applications for gas with its ADM™ device which allows "smart" functions such as remote reading and half hourly consumption data to be offered to customers in addition to the normal metering services. Longer term the company also has additional applications for water and LPG.

The Company was admitted to the AiM market in July 2011 and is now part of the FTSE AiM 50 index, for more information on SMS please visit the Company's website: www.sms-plc.com

 

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