(Alliance News) - Smart Metering Systems PLC on Tuesday reported continued growth for 2020 on a like-for-like basis during an "exceptionally challenging" period.
The Glasgow-based provider of end-to-end services in utility connections, smart metering and energy management's 2020 group revenue was GBP103.0 million, down 9.9% from GBP114.3 million in 2019. Reductions in revenue have been largely offset by equivalent reductions in cost of sales, it said.
However, Smart Metering Systems' 2020 pretax profit was GBP195.0 million, up considerably from GBP5.5 million in 2019, partially due to lower capital expenditure on revenue-generating assets through the year.
Underlying pretax profit for 2020 was GBP12.2 million, down 22% from GBP15.6 million in 2019, reflecting the effect of a minority asset disposal. The company said in February it expects underlying pretax profit to be "marginally" ahead of market expectations.
Smart Metering Systems declared a dividend of 25.0 pence per share for 2020, compared to 6.9p in 2019, to be paid in four instalments starting from October 2020. It intends to increase the dividend by 10% per annum until 2024, it said, and is targeting a 27.5p per share dividend for 2021.
Shares in Smart Metering Systems were up 2.4% at 771.96p in London on on Tuesday.
"2020 has been a transformational year for SMS, from which we have emerged a stronger, leaner organisation with a reinforced commitment to our customers, the environment and our people. We have delivered financial results ahead of market expectations in an unprecedented year, demonstrating the strength of our business model. These achievements are testament to SMS's ability to leverage its well-established platform and infrastructure, and to support continuing growth, with significant additional opportunities in CaRe assets. The Covid-19 pandemic has accelerated the urgency to decarbonise, decentralise and digitalise the UK's energy systems," said Chief Executive Alan Foy.
Looking ahead, Smart Metering Systems said it is continuing to trade in line with board's expectations, maintaining a recovering operating level through the early part of 2021.
"We maintain our focus on safely serving our customers and are well placed to drive forward our strategy of delivering smart energy solutions to realise a greener, more sustainable future," said Foy.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.