(Sharecast News) - Smart Metering Systems said in a trading update on Wednesday that its index-linked annualised recurring revenue had grown 8% over the six months to 30 June, to £93.1m, as it lifted its full-year earnings expectations.
The AIM-traded firm said its smart meter portfolio increased to 1.9 million as at 30 June, from 1.7 million on 31 December.
During the period it secured a new smart meter contract win, adding around 100,000 meters to its pipeline, which totalled 2.42 million at period end.
It reported "continued growth" in smart meter installation rates and no impact on meter supply during the half-year.
Looking at its grid-scale battery pipeline, meanwhile, SMS said the first 50MW was performing "well", ahead of management expectations.
The total battery pipeline increased to 760MW as at 30 June, from 620MW at the end of December.
It also described "continued progress" in other carbon reduction products and services, including recent strategic investments in electric vehicle charging infrastructure and energy data management.
SMS said its net cash position at the end of June was £38.6m, adding that underlying EBITDA and profit before tax for the 2022 financial year were now expected to be "marginally ahead" of previous expectations.
The board flagged an expected full-year dividend of 30.25p per share, up 10% over the prior year and in line with stated policy.
"The global energy market has changed rapidly over the last few months," said chief executive officer Tim Mortlock.
"The requirement for a low carbon, flexible and secure energy system has never been greater or more acute.
"Our purpose is to facilitate a lower cost, lower carbon energy future."
Mortlock said the company's carbon reduction assets, managed by its in-house technology platform 'METIS', had helped consumers manage energy bills throughout the current, "difficult" period.
"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.
"The defensive nature of smart meters, combined with our long-term index-linked cash flows has seen SMS demonstrate strong financial and operational resilience throughout the pandemic, energy market volatility and recent geopolitical upheaval.
"Our existing pipeline of meter assets and grid-scale battery storage assets alone is well on track to hit our medium-term growth expectations, with significant additional opportunities for growth in our established carbon reduction asset classes and in developing carbon reduction products and services."
At 1405 BST, shares in Smart Metering Systems were up 2.3% at 933p.
Reporting by Josh White at Sharecast.com.
