(Alliance News) - Smart Metering Systems PLC on Wednesday said it expects to raise its dividend for 2021, as well as perform in line with management expectations for the first half of the year.
Over the six months ended June 30, the Glasgow-based provider of smart metering and energy management services posted a 9.3% rise in index linked annual recurring revenue to GBP84.2 million from GBP77.0 million at the end of 2020.
Total meter and data assets edged upwards to 4.0 million from 3.8 million, due to a lift in the domestic smart meter portfolio by 146,000 to 1.5 million, and a rise in the contracted smart meter order pipeline to 2.35 million from 2.0 million at December 31.
The group expects underlying profit and revenue to be in line with management expectations.
In the same period a year before, underlying pretax profit was GBP9.1 million, on revenue of GBP54.2 million.
Looking ahead, Smart Metering Systems said it has continued to make progress in expanding its smart meter order and grid-scale battery pipelines, with the latter's projects continuing to be built in line with cost and construction expectations.
As a result, for 2021 as a whole, the group's underlying profitability is set to remain in line with expectations, while the total dividend is anticipated to be 27.5 pence per share, a 10% year-on-year rise from 25.0p the prior year.
"The group's performance remains strong, further demonstrating the resilience of our business, the defensive nature of the metering infrastructure asset class and the index linked sustainable cash flows it generates," said Chief Executive Officer Alan Foy.
"Once installed, we estimate our existing meter and battery pipelines will add a combined GBP70 million to the group's GBP50 million of Ebitda in 2020. Our metering, data and battery CaRe products allow us to access an addressable market opportunity of GBP1.2 billion Ebitda, alongside the significant additional potential provided by our developing CaRe products," Foy added.
Shares in Smart Metering Systems were up 1.9% at 907.00 pence on Wednesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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