SMART Metering Systems has increased its firepower for expansion to £150 million after securing an additional £45 million bank funding, which the firm could draw on for acquisitions.
The Glasgow-based firm, which installs and manages sophisticated meters for energy firms, said it has agreed a new £150 million credit facility with existing lenders Bank of Scotland, Barclays and Santander Bank.
The agreement replaces an existing £105m facility and gives the company significantly increased resources to capitalise on opportunities to accelerate its development.
A spokesman for the company said it could use the new funding to support acquisitions.
The company said the new facility was offered on better terms than the one it replaced.
It appears to represent a vote of confidence in Smart Metering Systems’ prospects on the part of lenders.
The company's chief executive, Alan Foy, said: "I am delighted that our lenders continue to show such great support for SMS and its strategy. The improvement to an already competitive facility will provide SMS with a significant additional source of finance."
Smart Metering Systems has been capitalising on increases in demand for the kind of sophisticated meters that businesses and householders can use to monitor their energy usage remotely amid the official drive to reduce emissions.
The UK Government wants energy firms to ensure all the country's homes and small businesses have smart or advanced meters by 2020.
After focusing on the industrial and commercial sector, Smart Metering Systems sees significant opportunities in the emerging domestic market. In January it signed agreements to supply domestic meters for five independent energy firms including Our Power.
The company could draw on the additional funding to buy more meters if it wins further contracts from energy firms.
The company has shown its readiness to make acquisitions to help boost growth and widen its service offering. The company used the £14m acquisition of the Utility Partnership in 2014 to expand into the electricity meter business after specialising in the gas market.
Directors have been pleased with the results of the cash and shares acquisition. The company drew on its debt facility to fund the acquisition.
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