(Alliance News) - Smart Metering Systems PLC on Wednesday said it will return grants received from the UK government under the Coronavirus Job Retention Scheme, a week after it said it intends to pay increased dividends through to the end of 2024.
The smart meter installer said that it applied for the grant and furloughed staff due to signifiant uncertainty and the suspension of smart meter installation activities on March 22 amid the Covid-19 pandemic. However, the resumption of activities in June has seen it emerging from the period with a strong financial position.
It has therefore decided to return the funds received by the UK government and has withdrawn from the scheme.
This comes after Smart Metering said on Tuesday last week that it intends to pay increased dividends through to the end of 2024, as it anticipates underlying profit for 2020 to be in line with expectations.
The Glasgow-headquartered company said it will pay a dividend of 25 pence for 2020 in four cash payments of 6.25p starting in October. Thereafter, it expects to increase its annual dividend in line with UK retail price index until the end of 2024.
As at the end of May, the company had net cash - excluding the grant to be returned - of GBP48 million.
Shares in Smart Metering Systems were trading 1.7% lower at 582.00 pence each on Wednesday morning in London, but are 4.5% higher than at the start of the year.
By Ife Taiwo; ifetaiwo@alliancenews.com.
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