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A very interesting webinar from Alan Foy, CEO of Smart Metering Systems Plc. If you’re interested in #ESG #sustainability #carbonreduction then you will know that smart meters are a key part of the UK’s strategy for meeting 2050 net zero emissions targets. Management are very much focused on being at the heart of the smart energy low-carbon revolution.
SMS already generates close to £80m of index linked annual recurring revenue from their existing installed meter assets, has a contracted pipeline to increase revenues by 50% and a further 100% opportunity with existing customers. Having sold a proportion of the industrial and Commercial asset earlier this year the company has net cash of £50 and is in a great position to fund this growth. Against a backdrop of so many companies cutting or cancelling their dividends, SMS underlined their confidence in the future by instigated a new dividend policy of 25p per share, 4 times the previous level. This dividend will be paid quarterly and will rise by RPI. Given the growth and the financial strength there is scope to increase the dividend significantly.
The presentation is available here and a recording of the webinar is available on the Yellowstone Advisory YouTube channel.