Updated: Jul 14, 2020
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.