Smart Metering Systems PLC Sees Large Stock Purchase From CEO

If a CEO is buying company stock, investors should take note. CEOs tend to be way ahead of analysts and portfolio managers when it comes to the performance of their companies and their share purchases can provide valuable trading signals.

In this report, we are going to highlight an interesting CEO purchase at Smart Metering Systems PLC (SMS:LN). Smart Metering Systems is a UK-based energy infrastructure company that owns, installs, and manages assets such as smart meters, battery energy storage systems, and electric vehicle (EV) charging points. It helps both companies and individuals optimize their energy usage, reducing their carbon footprint as well as their energy costs. It is traded on the London Stock Exchange’s AIM market and currently has a market capitalization of approximately £1.01 billion.

Insider Buying at Smart Metering Systems PLC

Our data shows that between March 28 and April 06, three insiders bought company stock. Those who bought shares were:

• CEO Timothy Mortlock (16,114 shares @ £7.45 per share)

• Board member Jamie Richards (3,357 shares @ £7.45 per share)

• Independent Chairman Miriam Greenwood (2,728 shares @ £7.51  per share) 

Combined, these insiders spent £165,545 worth on company stock

Industry Experience 

The trades executed by insiders are worth highlighting for a couple of reasons.

Firstly, the insiders have made relatively large trades here, increasing the size of their positions substantially. Mr. Mortlock increased his position by 45.70%, Mr. Richards by 63.89% and Ms. Greenwood by 9.30%.

Secondly, the insiders have made a number of well-timed purchases in the recent past and appear to be remarkable at buying the dips.

Mr. Mortlock has over 20 years’ experience in the energy and utility industries across utility connections, smart metering, data, and energy services. Previously, he was part of the UPL business that was acquired by SMS in 2014. Given his background and experience, he is likely to have a good understanding of his company's growth potential.

Mr. Richards on the other hand is a certified chartered accountant with more than 25 years of experience in fund management, banking and corporate recovery and commands great excellence in the domain of infrastructure and energy sectors. 

Lastly, Ms. Greenwood, a barrister by trade, possesses immaculate foresight and is a visionary individual with a vast experience of 30 years in the financial world. She has offered her services as a non-executive director for a plethora of publicly listed and private companies. The financial genius also has a mastery in the energy and utilities industry.

Strong Momentum

Smart Metering Systems recently produced a strong set of 2022 results.

For the year, group revenue was up 25% to £135.5 million. Meanwhile, underlying basic earnings per share were up 67% to 16.06p.

On the back of these results, the company increased its dividend by 10% to 30.25p per share.

Looking ahead, the company said that FY2023 pre-exceptional EBITDA is expected to be marginally ahead of its previous expectations.

It also said that it was confident in the medium-term outlook and that it sees “significant market opportunities” to further accelerate its portfolio.

“SMS is strongly positioned to provide the knowledge, engineering, data platforms and services behind the UK's move to net zero," commented Mr. Mortlock.

In light of these results, we see the insider buying here as a bullish development.