(Alliance News) - Smart Metering Systems PLC on Tuesday said annual profit almost doubled as revenue increased by a quarter, prompting the company to hike its dividend by 10%.
SMS is a Glasgow-based provider of end-to-end services in utility connections, smart metering and energy management.
Pretax profit rose 92% to GBP16.0 million in 2022 from GBP8.3 million in 2021. This was in line with revenue rising 25% to GBP135.5 million from GBP108.5 million.
Basic earnings per share multiplied to 11.16 pence in 2022 from 3.20p in 2021.
As a result, Smart Metering Systems declared a total annual dividend of 30.25p per share, up 10% from 27.50p for 2021.
The stock was down 0.6% to 814.00p each in London late Tuesday morning.
"We have delivered another year of strong performance across all our key metrics. This again highlights the attractiveness of our CaRe asset portfolio and the strong execution by our teams," said Chief Executive Officer Tim Mortlock.
Looking ahead, SMS said it expects 2023 pre-exceptional earnings before interest, tax, depreciation and amortisation to be marginally ahead of previous expectations, while underlying pretax profit is expected to be in line with its previous expectations.
Pre-exceptional Ebitda in 2022 was up 21% to GBP63.8 million from GBP52.8 million in 2021.
Smart Metering Systems added it is confident in its medium-term outlook, with smart meter installation run-rate expected to progressively improve across 2023, alongside continued delivery and growth of its grid-scale battery pipeline.
"The strong momentum in our meter and grid-scale batteries businesses provides us with confidence in our 2023 and longer term outlook - we will continue to deliver on our sustainable promises," Mortlock said.
"We also see significant market opportunities to further accelerate our portfolio of CaRe assets, including electric vehicle charging infrastructure and behind-the-meter solar and storage. Meeting the key challenges of energy security, affordability and sustainability - SMS is strongly positioned to provide the knowledge, engineering, data platforms and services behind the UK's move to net zero."
SMS had net debt of GBP31.2 million on December 31, swinging from net cash of GBP117.7 million a year earlier. It noted it has GBP355 million undrawn on its debt facility, down fro GBP420 million a year before.
By Greg Rosenvinge, Alliance News reporter
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