Smart Metering Systems plc
Strategic Investments
Smart Metering Systems plc (AIM: “SMS”, the “Group”), a fully integrated energy infrastructure company owning and managing meter assets, energy data, grid scale batteries and other carbon reduction (CaRe) assets, is pleased to announce two strategic investments, accelerating the Group's capabilities in the electric vehicle (EV) charging infrastructure asset class and further expanding its service offering in energy data management.
Clenergy EV Limited (“Clenergy EV”)
SMS has invested an initial £2.0 million to acquire a 25% shareholding in Clenergy EV, a software business with a Charge Point Operator (CPO) platform focused on EV charging infrastructure. Clenergy EV's customer base is in the public charging and fleet sectors, with its platform currently being used in more than 1,000 EV chargers across the UK. SMS has the option to invest a further £2.0 million after one year, leading to the acquisition of an additional 26% interest, and has an option to acquire the remaining shares after five years.
This investment complements SMS's existing EV installation capabilities and will enable the Group to deliver a fully end-to-end integrated platform for EV charging infrastructure, a model the Group has successfully adopted for its meters, data and grid-scale battery assets.
n3rgy Data Ltd (“n3rgy”)
SMS has separately acquired 100% of n3rgy, a data software company, for a cash consideration of £1.4 million. n3rgy's software (SaaS) platform enables and facilitates the use of energy consumption, generation and tariff data from smart meters registered on the Data Communications Company (DCC) platform. This data is then used for settlement, billing, energy management and a growing market of wider applications and services.
The acquisition, together with the Group's accredited and scalable technology platforms, will enhance and accelerate SMS's capabilities in smart energy data solutions, providing the Group with a strong competitive position in the significant addressable market as the industry moves towards mandatory half-hourly settlement.
An additional £0.8 million deferred consideration will be payable by SMS subject to n3rgy achieving certain performance targets.
Notice of Half Year trading update
As reported at the Group's AGM update on 19 May 2022:
- Our smart meter installation run rate has continued to strengthen throughout the course of this year, in line with the Group's expectations
- Our first 50MW grid-scale battery project continues to perform strongly and our additional 660MW pipeline continues to progress in line with our expectations
A trading update for the first six months to 30 June 2022 is expected to be released on Wednesday 27 July 2022.
Tim Mortlock, Chief Executive Officer, commented:
“These two strategic investments are highly complementary to the existing SMS business and will significantly enhance our propositions in EV charging and energy data management, continuing the momentum in developing our CaRe products and services. Our investment in Clenergy EV will help to accelerate our advancement into the highly attractive EV charging market and the acquisition of n3rgy enables us to build on our strong existing position in energy data solutions.”