Smart Metering Systems Profit Grows 61% In Strong First Half

LONDON (Alliance News) - Smart Metering Systems PLC on Wednesday said its pretax profit for the six months to the end of June rose 61% as it posted a substantial revenue rise thanks to growth in its gas meter portfolio.

The company said its pretax profit for the six months to the end of June was GBP7.4 million, up from GBP4.6 million a year earlier, as its revenue rose to GBP25.8 million from GBP18.9 million. Recurring revenue for the group increased 39% to GBP30.5 million, with growth in both its gas meter recurring rent and electricity meter recurring rent.

Smart Metering said its gas meter portfolio rose 9% in the half to 661,000, up from 607,000 at the end of December, boosted by a 37% growth in its industrial and commercial meters. Electricity meters rose 64% to 19,700 from 12,000 at the end of December.

The performance was boosted by the full-year contribution from Utility Partnership Ltd, which the company acquired in April 2014. Since then, Smart Metering has rebranded its business, bringing all of its subsidiaries under the Smart Metering Systems banner.

The company will pay an interim dividend of 1.1 pence per share, up 17% year-on-year.

"We are delighted that our integrated business service model and core strategy of growing our meter asset base and data services with an emphasis on recurring income, has resulted in further financial and operational growth over the first six months of the year," said Alan Foy, Smart Metering's chief executive.

"We are well positioned to participate in the UK's upcoming domestic smart meter exchange programme which, we believe, will provide similar asset ownership and recurring income opportunities," he added.

Shares in the company were up 2.7% to 345.00 pence on Wednesday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

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