A SCOTTISH company that installs smart meters on behalf of energy companies has seen a significant increase in half-year turnover and profit.
Glasgow-based Smart Metering Systems said the 11 cent increase in revenue and, also according to its alternative performance measures, the 7% increase in pre-tax profit were strong results.
Its indexed annualized recurring income (ILARR) reached £93.1 million as of June 30, up from £84.2 million the previous year.
Statutory performance measures showed revenue up 21% to £62.7m and profit up 22% to £6.1m.
SMS Chief Executive Tim Mortlock said “the strong half-year results again demonstrate the resilience of our business model”, adding that it is supported by recurring indexed cash flow from meters and assets in data, and reflects the strong performance of its first grid-scale battery storage project.
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“We have made significant progress in executing the strategy set out last fall,” he said. “We are delighted to see a continued acceleration in our meter installation rates, an increase in our smart meter portfolio and a new contract to add to our smart meter order pipeline.
“Leveraging our end-to-end platform, we have built and begun successfully delivering a strong portfolio of grid-scale battery storage projects in a short period of time, with significant opportunities. in this substantial and growing market. »
He said: “Our two recent strategic investments in electric vehicle charging infrastructure and energy data are complementary to our existing end-to-end business model and enhance our ability to accelerate other carbon reduction products and services. (CaRe), offering additional long-term growth opportunities.
“The global energy market is going through a period of extreme turbulence and there is a fundamental need for the CaRe assets that we produce and own.”
These assets “enable the transition to a low-carbon, flexible, secure and, particularly important at this time for all businesses and consumers, low-cost energy system”.
He added, “We remain confident about the future growth prospects of the business.”
Real estate broker Cenkos pointed to a meter installation pipeline of 2.42m versus a full year last year of 2.55m, reflecting a contract win during the period and net new installations.
An average of 38,500 meters per month were installed in the first half with an average installation rate reported in the second quarter of over 40,000 per month.
With the portfolio of grid-scale battery projects increasing to 760 MW, of which 360 MW in total are fully secured, 190 MW are under construction.
“The battery storage portfolio has grown to 760 MW, with the first 50 MW project ahead of initial expectations. SMS is uniquely positioned to absorb inflationary pressure,” he said.
Last year the dividend for the full year increased to 27.5p with the fourth installment paid in July, and “in line with the policy of increasing dividends by 10% per annum”, a dividend of 30, 25 pence is planned for this full year.
Shares in SMS closed at 904p, up 0.33%, or 3p.