This morning, SMS noted the considerable turbulence within the UK energy supply market and confirmed it remains comfortable with previous guidance on the contracted smart meter order pipeline (2.75m by FY26). SMS also stated that current FY21 trading remains in line with expectations. Continued weakness in the SMS share price caused by uncertainty in the energy supply market looks overdone to us and we maintain that, in the long term, downside risk for SMS is limited. SMS pays an attractive fore
Companies: Smart Metering Systems PLC
Recent weakness in the SMS share price caused by uncertainty in the energy supply market is unwarranted and we see very limited downside risk for SMS. This presents a strong opportunity that should not be missed by investors in our view. On 13 September SMS announced strong interim results, a revised £420m RCF facility and a £175m equity raise. This revised capital structure, with internal cash generation, provides all the necessary funding for currently visible contracted growth, which will req
SMS has announced a contract win with a large energy supplier where SMS will fund and provide MAP services for at least 400,000 domestic smart meters, taking the contracted pipeline to 2.75m. A further 50MW grid-scale battery project (commencing installation Q4/22) has also been secured from the 470MW pipeline, taking the secured pipeline to 240MW. We estimate that the combined current contracted metering and secured battery pipelines should add c£75m EBITDA alone upon completion, an increase of
In a trading update this morning, SMS confirmed it is trading in line with Board expectations, with ILARR at end H1/21 up 9.3% from £77.0m at FY20. Meter installation activity has recovered strongly post COVID restrictions and strong progress continues to be made with grid-scale battery projects. The combined current metering and battery pipelines alone, providing good visibility, are forecast to add a further £70m EBITDA upon completion, an increase of over 140% versus the £49.9m at FY20. SMS h
Big Technologies (BIG.L) has joined AIM. Big Technologies plc provides products and services to the remote and personal monitoring industry under a number of brand and trading names, with 'Buddi' being the most well known and used in respect of activities within the core criminal justice market. The Company's criminal justice solution involves proprietary monitoring software combined with modular monitoring hardware being used to accurately track the location of tag wearers. Alongside
Companies: AGL CMCL CEG CCS EEE GOOD PPC SMS TRCS ZPHR
SMS held a virtual CME on 23 June providing detailed insight into the next stage of growth. The significant scale of the market opportunity is evident but what has become increasingly clear to us is the competitive advantage SMS has developed and its preparedness to participate at scale within the energy revolution.
Smart Meter Systems released an AGM update this morning confirming that it is currently trading in line with the Board's expectations. At the FY20 results in March 2021 SMS reported that meter installation run-rates had recovered to 80% of pre-COVID-19 lockdown levels. Installations have continued to improve and in April the run-rate surpassed pre-Covid levels. The balance sheet remains strong with £28.4m cash and undrawn facilities of £276.8m. Construction of the first 90MW grid-scale battery s
Final results from SMS showed a robust performance in FY20. Smart meter installation run-rates have recovered to 80% of pre-COVID-19 lockdown levels and significant progress has been made with its CaRe asset strategy. Initial grid-scale battery storage projects are now under construction and due to go live by end of FY21, making first contributions in FY22. We believe SMS remains substantially undervalued given: i) Base case DCF valuation of 1,324p; ii) Base case DDM valuation of 1,345p; iii) st
SMS has announced new contract wins with two of the fastest growing independent energy suppliers in the UK to provide meter installation and Meter Asset Provider (MAP) services. Minimum contracted order commitments will see the SMS contracted pipeline increase to 2.5m (December 2020: 2.0m), indicating an addition of at least 500k smart meters. SMS has also announced the acquisition of a portfolio of 15,000 I&C electricity meters and 20,000 meter point data collection contracts, adding £3.1m ILAR
Update from SMS indicating that underlying PBT is marginally ahead of Board expectations, with expected FY20E net cash £30m. Smart meter installation run-rates are over 80% of pre-Covid-19 lockdown levels. Good progress has also been made with its CaRe asset strategy, with grid-scale battery storage projects now under construction. We continue to believe SMS remains substantially undervalued given: i) Base case DCF valuation of 1,222p; ii) Base case DDM valuation of 1,334p; iii) strong visible g
SMS reported solid interim results demonstrating the resilience of the business during a very uncertain period. 1H/20 revenue was flat at £54.2m with underlying PBT up 96.9% to £9.1m. We believe SMS remains substantially undervalued given: i) Base case DCF valuation of 1,058p; ii) Base case DDM valuation of 1,176p; iii) visible growth to mid-2025 with secured 2m meter order book and substantial CaRe asset potential; iv) attractive dividend with committed 10% p.a. growth to 2024; iv) balance shee
In a trading update, SMS confirmed that revenue and underlying profitability to 30 June 2020 are in line with earlier expectations demonstrating the resilience of meter related ILARR and business model. FY20 underlying profitability remains in line with prior expectations. H1/20 net cash was £45m. Meter installations recommenced on 1 June 2020 and are expected to return to normal run rates by the beginning of 2021. We believe SMS presents a compelling investment proposition with a strong balance
SMS presents a compelling investment proposition with a strong financial position, underlying profitability in line with expectations prior to Covid-19 uncertainty and a rebased, index linked dividend yield of 4.2%. Long-term revenues are not demand reliant, therefore uncorrelated to GDP volatility and benefit from automatic, upwards only RPI indexation. We believe SMS remains substantially undervalued given: i) Base case DDM valuation of 1164p; ii) high level of growth with secured meter order
Smart Metering Systems (SMS) has announced that it has emerged from the recent Covid-19 uncertainty in a strong financial position and taken the decision to return funds received from the Government under the Coronavirus Jobs Retention Scheme. Current net cash of £48m (not including furlough grant) is ahead of previous expectations and underlying profitability for the year to 31 December 2020 is expected to be in line with expectations prior to lockdown, despite the obvious interruptions to mete
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AFC Energy has announced that its “S” Series hydrogen fuel cell system and ammonia cracker have been selected for the Norwegian ZeroCoaster bulk cargo ship design. The proposal has also been awarded “Approval in Principle” status by DNV, the international certification agency. The announcement is another significant endorsement of AFC Energy’s technology and the group’s biggest step forward in Maritime. This is further endorsement of our investment thesis, which was refreshed in September, which
Companies: AFC Energy plc
Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Fulcrum has delivered a reassuring trading update, confirming it continues to trade in-line with FY22E forecasts, as evidenced by disclosed headline interim results. This comes despite recent turbulence in the UK's energy marketplace, which has not impacted Fulcrum's progress, including its recently established smart metering business. Given a 22% decline in the shares this month, opportunistic buyers should see value as forecasts remain unchanged and the stock now trades at book value and a his
Companies: Fulcrum Utility Services Ltd
Strong progress from Spectra Systems Corporation (Spectra), combined with emerging opportunities that were highlighted in the company's recent H1 results, mean we are now able to provide firm forecasts on a five-year basis, a virtually unprecedented state of affairs not just for Spectra but for any quoted growth company. The new forecasts are progressive and substantial, suggesting Spectra will generate a £35m-plus aggregate PBT during 2021E-2025E. We do not view these forecasts as speculative,
Companies: Spectra Systems Corporation
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What’s cooking in the IPO kitchen?
Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
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Powerhouse has seen early benefits from the agreement signed with HUI in October with this progress on a new project site in Bulgaria. Details have still to be agreed but we see the project as an example of further international demand for the company’s waste to hydrogen technology.
Companies: Powerhouse Energy Group PLC
Companies: ITM Power PLC
i(x) Net Zero, the investing company which focusses on Energy Transition and Sustainability in the Built Environment, announces its intention to join AIM. Following Admission, the Company intends to use the net proceeds of the proposed Fundraising to provide development and expansion capital to certain of its investee companies, for future investments in companies that fall primarily within its areas of interest in Energy Transition and Sustainability in the Built Environment and to provide work
Companies: TGN AFC COIN COIN HL/ OMI
A stellar financial performance in the first half shows Brickability at its best, delivering growth from organic and acquisition sources, gaining share and strategically, and importantly, continuing to diversify and de-risk the business by broadening its product ranges and customer depth. Whilst the half has been an extraordinarily favourable one in comparative terms and our instinct is to believe that forecasts can be beaten going forwards in both the short and medium-term from the enhanced pla
Companies: Brickability Group PLC
Spectra Systems is a leading provider of advanced technology solutions for banknote and product authentication markets. Spectra's newest customer (announced September 2021), using its optical materials in K-cups for Keurig brewers, has already placed three orders totalling $394,000 since inception (three months sales) and thus evidences the traction Spectra is making in this niche but important growth market. Based on the order pattern to-date, Spectra estimates that this business stream (all cu
LTHM announced exceptional results for H1F22 ended 30 September 2021. H1F22 revenue reached £193.9m, +81.2% over H1F21 of £107m. This is notably a stellar first half driven by demand-supply imbalances in global markets that have resulted following the pandemic. Resulting PAT of £26.6m translates to EPS of £1.335 vs. £0.256 in H1F21.
Companies: James Latham Plc
Windward (WNWD.L) has joined AIM. Windward is a leading predictive intelligence company, fusing artificial intelligence (AI) and maritime expertise seeking to digitalise the global maritime industry. As at 30 September 2021, the Company had 120 permanent employees and had an annual contract value of US$19.7m, with 99 per cent. of the revenue being subscription based. The Placing raised gross proceeds of £26.3m (US$35m) of new capital for the Company and £8.2m (US$10.9m) for certain exist
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Against the backdrop of the 26th UN Climate Change Conference of the Parties (COP26) we take a closer look at the rapidly developing technology and industries surrounding the evolution of the so-called hydrogen economy. Hydrogen is an energy vector or fuel that is capable of storing, transforming and transporting energy with zero emissions at the point of use. It can also be made by renewable energy sources. It is also the most abundant element in the universe accounting for some 75% of all matt
Companies: STA CZA 1PG AFC CWR CHAR EQT GTC HAYD IGAS ITM ORCP PPC RCDO RIO SNT TOU UKOG WG/
While there remains considerable uncertainty over the planning and permitting of the Uskmouth power station conversion there have been a couple of recent pieces of good news for SIMEC Atlantis in our view. Inclusion of waste-to-energy in the carbon capture support model is potentially positive for Uskmouth and may increase its political attractiveness to the Welsh Government as they consider permitting. The ring fencing of CfD support for tidal steam in the next allocation round opens up the pos
Companies: SIMEC Atlantis Energy Ltd.
A sea change for the better?
The global science-based group that makes plastic and rubber products "smarter, safer and sustainable", has welcomed DEFRA’s decision to not list oxo-biodegradable plastic in its November 2021 public consultation as a “frequently littered and problematic plastic.” The Scottish Government has likewise issued draft Regulations in November which do not list oxo-biodegradable plastic. Symphony views this as a major step in the right direction.
DEFRA and the Scottish Gov
Companies: Symphony Environmental Technologies plc