Cenkos: Smart Metering Systems Plc -- Strong H1/22 – FY23E forecast upgrade

Smart Metering Systems (SMS) has announced strong interim results, underlining the resilience of and visibility within the business model. The smart meter rollout programme is accelerating, with over 40,000 meter per month being installed and c70% of SMS SMETS1 portfolio meters now enrolled on the DCC platform. The battery storage portfolio has grown to 760MW, with the first 50MW project trading ahead of initial expectations. SMS is especially well placed to absorb inflationary pressure, with H1

Cenkos: Tech Download for the Week -- LBG Media, DotDigital, Solid State, XL Media, Smart Metering Systems, Arqit Quantum, Brave Bison, Clean Power Hydrogen

Enclosed is our weekly download of technology news and updates from technology-focussed UK companies.

Cenkos: Smart Metering Systems Plc -- Robust trading ahead of forecasts

SMS has announced a solid trading update, with underlying EBITDA and PBT marginally ahead of forecasts, mainly driven by a “well ahead of Board expectations” performance of the Burwell grid-scale battery project and the annual meter rental RPI indexation on 1 April 2022 (4.3%). The battery pipeline has also increased to 760MW. ILARR has increased 8.4% over H1/22 to £93.1m, with the smart meter portfolio increased to 1.9m meters. The current meter installation pipeline is 2.42m including a new 0.

Hybridan Small Cap Feast 21/06/2022

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Visum Technologies seeking admission to The AQSE Growth Market. The Company's business is to own and operate an "on-ride" video and photographic camera system that it sells and/or licenses to customers (being theme parks, ride manufacturers, souvenir imaging providers, and other leisure operators). Due 30 June. LifeSafe Holdings, a fire safety technology business with innovative fire safety products, intends

Cenkos: Smart Metering Systems Plc -- Accelerating CaRe asset strategy

SMS has announced two strategically important investments this morning, in line with the strategy presented during the CMD in June 2021 (DOWNLOAD). The first investment is to acquire an initial 25% holding in Clenergy EV, a software business with a Charge Point Operator platform and the second to acquire 100% of n3rgy Data, a data software business providing direct access to smart meter consumption data from the DCC. Total consideration for these investments is an initial £3.4m. Clenergy enables

Cenkos: Smart Metering Systems Plc - Continued strong momentum

SMS released an AGM update this morning confirming that it is currently trading in line with the Board's expectations, with solid growth in index linked annualised recurring revenues (ILARR) to £91.4m, continued strengthening in the meter installation run-rate (with further improvement expected throughout the year), strong performance of the first 50MW of batteries and further expansion of the grid-scale battery pipeline to 710MW. The balance sheet remains strong with £63.3m cash and £420m undra

Cenkos: Smart Metering Systems Plc -- Robust results with strong outlook

FY21 results showed a strong performance given the headwinds caused by Covid in H1/21 and the energy market turmoil in H2/21 (which has had a negligible impact on the SMS pipeline). ILARR was up 11.6% to £85.9m (£86.8m at end February 2022 and increasing by 4.3% RPI in April 2022), with underlying PBT up 20.4% to £18.3m. The growing installation run-rate reached over c30,000 per month in H2/21 (SMS is currently installing 9.4% of all new UK smart meters). The Initial 50MW grid-scale battery stor

Cenkos: Smart Metering Systems Plc -- Valuation disconnect opportunity

SMS has confirmed in a trading update that FY21 underlying PBT is expected to be marginally ahead of consensus (despite an upgrade in September) and ILARR has grown 11.6% to £85.9m. The meter installation run-rate has averaged 30,000 per month since June 2021 and is expected to increase during 2022. SMS also remains confident in the FY22 outlook. We have therefore made no changes to forecasts and believe that the continued weakness in the share price, caused by uncertainty in the energy supply m

Cenkos: Smart Metering Systems Plc -- Expanded grid-scale battery pipeline

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

Cenkos: Smart Metering Systems Plc -- Unique exposure to energy transition

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

Cenkos: Smart Metering Systems Plc - New meter contract and increase in grid-scale battery storage pipeline

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

Cenkos: Smart Metering Systems -- In-line trading with strong run-rate recovery

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

Small Cap Feast: 28/07/21

Joiners: 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

Cenkos: Smart Metering Systems Plc -- Central to the energy revolution

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.

Cenkos: Smart Metering Systems Plc -- AGM update

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

ITM Power - Forecast and target price update

Forecast and target price update

LIBERUM: SigmaRoc* - On track & strategic JV

LIBERUM: Yü Group* - More upgrades and stand-out cheap – even in this market

Xpediator (XPD LN) - Under new management

XPD has a new management team, only recently appointed. They have a full plate, including fixing underperforming UK warehousing and freight forwarding units, cutting overheads, and improving management of working capital to reduce debt. But there are also some gems in the Group, the core Central & Eastern European (CEE) logistics operations continue to perform strongly despite the turbulence of the War in Ukraine. Hence H1 earnings show a mixed picture with Group revenue up nearly 50% to £189.3m

LIBERUM: SThree* - Strong Q3 leads to another upgrade

EQTE - Heads of Terms toward Sale of Deeside Project

Heads of Terms toward Sale of Deeside Project

LIBERUM: Judges Scientific* - Geotek drives FY upgrades

SHORE CAPITAL - Crestchic^ (LAOD) - House Stock at 274p

Water Intelligence - 1H22 interims, amending TP, reiterate Buy

Water Intelligence reported a strong increase in revenues for 1H22 but that did not translate into profits which were held back by a sharp increase in other administrative costs. We understand that cost trajectory should flatten in 2H22 which, together with an increase in our revenue forecasts, means we maintain our EPS forecasts. The revenue performance underscores the strength of the growth story but given current market conditions and the need for Water Intelligence to demonstrate bottom line

SIMEC Atlantis Energy* - MeyGen tidal turbine redeployment

MeyGen tidal turbine redeployment

EQTEC - Deeside Sale Terms Agreed

EQTEC continues to deliver on its strategy of realising value from its development projects and focusing on the delivery of its proprietary gasification technology. The agreement to sell Deeside for £15m represents value in our view and adjusting our forecasts for the transaction raises our central case valuation to 3.4p from 3.2p.

SHORE CAPITAL - Mpac Group+ (MPAC, House Stock at 305p)

EQTEC - Rationalisation at Southport

Rationalisation of project ownership at the Southport Hybrid Energy Park allows EQTEC to avoid major capital commitment while still benefiting from development services income, and helps to accelerate development of the project which, in Phase 2, will include EQTEC gasification technology.

LIBERUM: Safestyle* - Investing to maintain momentum

EQTEC - Southport project update

Southport project update