Shares of Glasgow-based Smart Metering Systems (SMS) rose about 4% on Tuesday after it published results for the six months ended June 30, 2020, showing revenue flat at £54.15 million but underlying profit before tax up 98% to £9.1 million.

SMS said a 25p per share dividend is intended in respect of full year 2020, to be paid in four installments starting October 2020, with the intention to increase the dividend by 10% per annum until full-year 2024

Smart Metering CEO Alan Foy said: “We have delivered a robust financial performance in the face of a highly challenging operating environment in the first half of 2020, with increases in index-linked annualised recurring revenue (ILARR) and underlying profitability. 

“The completion of a disposal of a minority of our I&C meter asset portfolio in April has further underscored the attractive nature of the meter asset class, provided balance sheet strength and enabled us to substantially increase the FY 2020 dividend.

“We have announced today an intended annual increase of 10% over the coming four years.

“Our pipeline of CaRe asset opportunities is making strong progress across a range of asset classes following our agreement with Columbia Threadneedle European Sustainable Infrastructure Fund announced in March, with an initial portfolio identified in grid-scale battery storage.

“The entire team at SMS has demonstrated outstanding resilience and commitment in the face of the challenges presented by COVID-19.

“We are well positioned, both financially and operationally, to deliver on our sizeable contracted smart meter order pipeline and move forward with the development of CaRe assets.

“Together, these will support the next phase of our evolution as a business at the heart of smart energy management.”