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LONDON (Alliance News) - Smart Metering Systems PLC Tuesday reported an increase in profit and revenue for the first half, reflecting a strong performance across the business.
The company, which is engaged in the rental and management of gas meters, posted GBP4.6 million for the six months to June 30, up from GBP3.3 million a year earlier, as revenue rose 44% GBP18.9 million from GBP13.2 million, largely due to increasing recurring revenue from the meter rental and data provision businesses.
Meter rental revenue grew 42% to GBP18.8 million compared with GBP13.2 million, while asset installation revenue rose to GBP9.5 million from GBP7.2 million.
However, the gas connection business saw revenue fall to GBP3.6 million from GBP4.1 million, but this is in line with the company's more typical performance of achieving a full-year gas connection revenue of between GBP6 million and GBP7 million.
At an operating level, the company said its meter portfolio surpassed the half-million mark with an increase of 65,000. It said contracts secured in 2012 with DONG Energy, Opus Gas Supply and Crown Gas and Power continue to help drive portfolio growth. In addition, the business contract secured with Centrica PLC's British Gas in July will further increase its meter portfolio.
Overall, the total meter portfolio increased 13% to 534,000 at the end of June from 469,000 at the end of December.
In April, Smart Metering Systems acquired Utility Partnership Ltd (UPL) in a deal worth GBP14 million. UPL manages over 90,000 electricity meters with core customers such as Centrica, SSE PLC and EDF Energy. Other customers include Network Rail Ltd and Vodafone Group PLC
"With this acquisition we will look to increase the electricity meter portfolio, further adding to our recurring rental revenue," the company said.
Looking ahead, the group said it looks forward with "confidence to the opportunities in the UK and internationally as we drive our vision to be the leading independent provider of smart metering solutions to suppliers in the utility sector with the highest levels of customer service".
On the back of its performance the company increased its interim dividend to 0.94 pence from 0.70 pence a year earlier.
The stock was quoted up 5.1% at 399.50 pence Tuesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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