Glasgow-based Smart Metering Systems (SMS) said total annualised recurring income increased by 20% to £41.3 million as at December 31, 2016.

The company’s shares have soared about 30% in the past year to give it a current stock market value of around £500 million.

In a trading update for the year ended December 31, SMS said it expected its results for the year to be in line with current market expectations and these will be published late March 2017.

CEO Alan Foy said: “2016 has been a transformational year for SMS with the evolution of our business model into a fully integrated service provider, in line with the requirements of our customers.

“The success of this strategy has been evidenced by our continued delivery of year-on-year double digit growth on all our key metrics.

“The domestic smart meter market continues to move apace and we have signed contracts with some of the fastest growing energy suppliers in the UK. “

SMS said its investment in its gas and electricity metering portfolio has seen the number of assets under management increase by 28% to 1.25 million.

This included 51,000 gas and electricity domestic smart meters installed towards the end of 2016, in the new domestic smart meter market.

SMS said that during 2016 it signed contracts for the installation and ownership of gas and electricity domestic smart meters with eight energy suppliers who currently supply 2.5 million consumers.