(Alliance News) - Smart Metering Systems PLC on Tuesday lifted its dividend and posted a jump in interim profit, due to higher smart meter installation run rates and its new battery site at Burwell.
SMS is a Glasgow-based provider of end-to-end services in utility connections, smart metering and energy management.
For the six months to June 30, the company posted a pretax profit of GBP6.1 million, reflecting a 22% increase from GBP5.0 million a year before.
This was on revenue growth of 21% to GBP62.7 million from GBP51.7 million.
The company cited increased smart meter installation run rates, a new contract win, and the start of trading of its new 50 megawatts grid-scale battery site at Burwell at the end of January. The site performed "well-ahead" of its expectations.
SMS declared an interim dividend of 20.625 pence, up 10% year-on-year from 18.750 pence.
It expects to pay a dividend of 30.25 pence per share for 2022, representing a 10% increase from 27.50 pence year-on-year, in line with policy.
SMS said that strong installation run rates continued in July and August. It is on track to install at least 450,000 smart meters in 2022.
For 2022, SMS expects underlying profitability to be marginally ahead of previous expectations.
For 2023, the company expects that pre-exceptional earnings before interest, tax, depreciation, and amortisation will be "marginally ahead" of expectations. Additionally, it anticipates underlying pretax profit to be in line with its previous expectations.
Shares were up 0.1% at 902.00 pence each on Tuesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.