Page 1

13 September 2021 Smart Metering Systems plc Strong H1 performance , well - positioned for growth Smart Metering Systems plc ( AIM : SMS , the Group ) , the fully integrated energy infrastructure company owning and managing meter assets , energy data , grid - scale batteries and other carbon reduction ( " CaRe " ) assets , has published its half year results for the six months ended 30 June 2021 . £ ' m ( unless stated otherwise ) Alternative performance measures Index - linked annualised recurring revenue ( ILARR ) ² Pre - exceptional EBITDA³ Underlying profit before taxation4 Underlying basic EPS ( p ) 5 Statutory performance measures Group revenue EBITDA ● ● H1 2021 84.2 26.1 9.6 4.20 51.7 22.4 ● H1 20201 Profit before taxation 5.0 Basic EPS ( p ) 0.90 Dividend per share ( p ) 18.75 5.6 Net cash / ( debt ) 1 2020 measures include the financial performance of the disposed I & C meter portfolio up to the date of sale on 22 April 2020 . 75.9 27.8 9.1 5.02 54.2 214.1 194.5 171.07 2 ILARR is the revenue generated from meter rental and data contracts at a point in time . Includes revenue from third - party managed meters . Pre - exceptional EBITDA is statutory EBITDA excluding exceptional items . 3 4 Underlying profit before taxation ( PBT ) is profit before taxation excluding exceptional items and amortisation of certain intangibles . 5 Underlying basic EPS is underlying profit after taxation divided by the weighted average number of ordinary shares for the purpose of basic EPS . H1 2021 underlying profit after taxation includes the non - recurring effect of a change in the deferred tax rate from 19 % to 25 % , following the UK Government's enactment of the Finance Bill 2021 in May , detailed further in the Financial Review section below . A reconciliation between reported and underlying performance is detailed in the Financial Review section below . Highlights Financial ILARR at 30 June 2021 up 9 % on year - end ( 31 December 2020 : £ 77.0m ) and up 11 % on the prior period ( 30 June 2020 : £ 75.9m ) to £ 84.2m Revenue down 5 % , to £ 51.7m ( H1 2020 : £ 54.2m ) , up 8 % once adjusted for the I & C meter portfolio disposal • Pre - exceptional EBITDA down 6 % , to £ 26.1m ( H1 2020 : £ 27.8m ) , up 22 % once adjusted for the I & C meter portfolio disposal Underlying profit before taxation up 5 % , to £ 9.6m ( H1 2020 : £ 9.1m ) , up 87 % once adjusted for the I & C meter portfolio disposal 4.58 44.5 Net cash at 30 June 2021 of £ 5.6m ( 30 June 2020 : net cash of £ 44.5m ) , reduction reflects continued investment in revenue - generating assets • 27.5p per share dividend intended in respect of full year FY 2021 ( full year FY 2020 : 25.0p ) , to be paid in quarterly instalments starting October 2021 • Assuming no further pandemic - related restrictions , the Board expects FY 2021 underlying PBT to be marginally ahead of its previous expectations Smart meters Strong recovery in smart meter installations post COVID - 19 Net increase in contracted smart meter order pipeline to c.2.75m ( 31 December 2020 : c.2.0m ) Grid - scale batteries 470MW grid - scale battery pipeline established 240MW of the total pipeline now acquired , of which 90MW are under construction and progressing in line with earlier expectations Smart Metering Systems plc Interim report 2021 1