Smart Metering sells assets, puts £282 million toward £420 million debt facility

By Rebecca Melvin

New York, March 24 – Smart Metering Systems plc said £282 million will be applied to repayment of amounts outstanding under the group's existing £420 million debt facility, resulting in a positive net cash position, according to a company news release on Tuesday.

The payment follows the group’s conditional sale of a minority of the company’s meter assets for £291 million, announced on March 12. Following the disposal, the group will have retained index-linked annual recurring revenue of £73.2 million.

The company has also taken steps to mitigate the effects of the Covid-19 pandemic on its employees and clients. It has stopped temporarily all non-essential field work, including installation of smart meters, while continuing to provide emergency field support and maintain its meter and data asset base. It has also closed all offices and warehouses with a majority of its workers working from home.

The company has also established Covid-19 risk assessment procedures and distributed extra personal protection equipment to staff while maintaining social distancing for all field and office-based employees who continue to work.

Due to the evolving Covid-19 situation, the impact on short-term financial performance of the business cannot be accurately quantified, but longer-term the impact will be minimal, the company said.

The Glasgow-based company manages gas connections and smart meters for U.K. utilities.

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