Significant New Contracts and First Sales for ADM

RNS Number : 9263C

Smart Metering Systems PLC

09 May 2012

 



9 May 2012

Smart Metering Systems plc

("SMS")

Significant New Contracts and First Sales for ADM

The Board of Smart Metering Systems plc (AIM: SMS.L) is delighted to give the following update with respect to significant new contracts in the Domestic and Industrial and Commercial (I & C) markets which will have a major impact on the Company's meter asset portfolio over the next two to three years and includes the announcement of the first sales of the Company's advanced metering solution ADM™.

Domestic Market

SMS has been contracted by Scottish and Southern Energy to provide Meter Operations Services in all regions outside of Scotland and the South East of England for two years. The service provision includes the installation, commissioning, testing, repair, maintenance, removal and/or replacement of Metering equipment.

The contract covers the lifetime of the meters (approximately 25 years) and is index linked, similar to the contractual provisions already in place for SMS's current meter portfolio. The current estimate is that this will add a further c180,000 units to the SMS meter portfolio over the lifetime of the contract.

This new agreement replaces an agreement SSE have had with the market leader in the domestic asset management business and marks a deepening of SMS' relationship with the company.

Industrial & Commercial Market

Following completion of successful trials in the I & C market in which meter sizes go from domestic size through to very large size meters, SMS has signed a contract with Contract Natural Gas (CNG) for the provision of meters and the  ADM™ solution

The CNG contract covers gas meters to be exchanged for new pulse enabled meters installed at the premises of their customers, in addition to installation of the ADM™ solution. Initial run rates are currently being established and once installed the meters will be included in SMS's existing index linked contracts.

The ADM™ is continuing to trial successfully with other clients and SMS is in negotiations on further contracts which the company hopes to announce in due course.

Alan Foy, Chief Executive Officer, commented:

"We are absolutely delighted that these important clients have decided to partner with us to this extent. We concluded 2011 with a meter portfolio of 254,000. These contracts represent a substantial increase in our business and significantly increase our participation in the domestic meter business as well as reinforce our position in the I&C market.

The ADM™ solution offers our customers a substantially cheaper meter reading alternative to the current manual read services." 

For Further Information:

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

Notes to Editors

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.

Longer term the company has further applications for water and LPG and has started trialling its new advanced metering system, the ADM™, which will allow "smart" applications such as remote reading and half hourly consumption data to be offered to customers in addition to the normal metering services.

The Company was admitted to the AiM market in July 2011, for more information on SMS please visit the Company's website: www.sms-plc.com

 

END

 

 

MSCFMGGKVRNGZZM