Glasgow-based Smart Metering Systems plc (SMS) has announced that CEO Alan Foy will step down as chief executive officer and as an executive director of SMS on March 1, 2022.
Chief operating officer Tim Mortlock, who has been with SMS for over 20 years, will be appointed CEO from March 1.
Smart Metering Systems also published a trading update for the year ended December 31, 2021, saying full-year underlying profit before tax is expected to be marginally ahead of consensus, after being upgraded in September 2021.
It said index-linked annual recurring revenue (ILARR) grew 11.6% to £85.9 million and that full-year dividend is expected to be 30.25p per share, up 10%.
“The group’s year-end cash position of £118m reflects internal cash generation and the net proceeds of the £175m equity placing to finance future growth,” said SMS.
SMS chair Miriam Greenwood said: “On behalf of the board I would like to express our sadness at Alan leaving SMS and thank him for his tireless work over two decades.
“Alan has very much driven SMS forward, particularly over the last decade and following the group’s listing on AIM, a period which has seen consistent and sustained growth as well as diversification into new asset classes.
“The resilience of the business which Alan has played a key role in building has been particularly demonstrated over the last 2 years in a time of unprecedented volatility in our markets.
“The board wish Alan well for the future.
“Tim has been an integral part of our senior management team and worked side by side with Alan for a number of years.
“The board is confident that he is the right individual to succeed Alan and to continue to drive our business forward for our customers, shareholders and employees.
“Tim will continue to be supported by the existing executive leadership team and senior management.”
Foy said: “2021 was a year of substantial progress for SMS and we ended the year strongly, despite the broader turbulence in the UK energy market.
“We delivered profit marginally ahead of upgraded expectations, saw good growth in our index-linked annualised recurring revenue and ended the year with a strong cash position.
“Our contracted smart meter order pipeline has proved resilient despite the market turbulence in the final quarter of the year, and we remain comfortable with the level of previously guided contracted order pipeline.
“We were also pleased to extend our exclusivity agreement with Shell Energy Retail.
“We have continued to make encouraging progress in the development of our grid-scale battery storage assets and pipeline, with our first 50MW battery site now operational.
“On the ESG front we are pleased with the progress made towards our 2030 net-zero carbon roadmap, our committee engagement and employee wellbeing programmes and have retained our strong focus on ensuring solid corporate governance.
“As we look at 2022, we remain confident with previously guided expectations for the year.
“We have a strong balance sheet thanks to our recent equity raise and organically-generated cash, and a growing smart meter and grid-scale battery pipeline.”