Mortlock hired as COO as SMS in talks over asset sale
Smart Metering Systems is in talks about a sale of a minority of its meter asset portfolio which would provide significant additional liquidity. It has also appointed Tim Mortlock as director and chief operating officer, a newly created position.
The Glasgow company is in discussions with a number of specialist infrastructure investors with UK expertise about the sale which it says will generate significant proceeds, demonstrate the value of part of the SMS’ substantial asset base and will help fund growth plans.
However, there is no certainty that SMS will proceed with any such sale. A further update on the possible sale will be provided as and when appropriate.
The company reported a half year loss before tax of £1.72m against a £10.124m profit last time. Underlying profit fell from £11.4m to £4.64m.
Alan Foy, chief executive, said: “We have continued to grow our annualised recurring revenue, our key financial metric, ahead of expectations and now have over 3.46 million metering and data assets under management of which over 1 million are smart.
“The widely reported industry-wide installation issues are now substantially addressed and the mass rollout of SMETS2 can now commence – this is expected to result in a pick up in the installation run-rate both in the latter part of 2019 and into 2020.
“With over 500 engineers and significant cash and debt facilities, we have the engineering and financial resources to handle our order book of approximately 2 million meter installations with headroom for further growth.
“We are in discussions about a sale of a minority of our meter asset portfolio, which, if completed at an appropriate value, would provide significant additional liquidity and demonstrate the inherent value of our substantial asset base.”
Mr Mortlock, aged 42, has been employed within the group for more than 20 years during which he has held a number of positions.
Most recently he acted as managing director of the Meter Assets and Energy Services Division.
Willie MacDiarmid, chairman of SMS, commented: “This is another key appointment to strengthen the board during an important phase for the company.”
SMS employs almost 1,000 people across 12 UK office, supporting the installation and ongoing management of metering assets.