Shares of Glasgow-based Smart Metering Systems plc (SMS) rose as much as 3% on Wednesday as the firm published a trading update for the six months to June 30, 2021, and a full year outlook.

The firm said first-half revenue and underlying profit are in line with the board’s expectations and that first-half Index Linked Annual Recurring Revenues (ILARR) grew 9.3% to £84.2 million.

In its outlook, SMS said full-year 2021 underlying profitability remains in line with the board’s expectations, with smart meter installation run rates expected to continue to strengthen.

Smart Metering said expected full-year 2021 dividend is 27.5 p per share, up 10% and in line with its stated policy.

SMS shares have risen about 40% over the past 12 months to give the Glasgow firm a stock market value of about £1 billion.

Smart Metering CEO Alan Foy said: “The group’s performance remains strong, further demonstrating the resilience of our business, the defensive nature of the metering infrastructure asset class and the index linked sustainable cash flows it generates.

“Our fully integrated and scalable technology platform ‘METIS’  is at the heart of digitally enabling and integrating our CaRe assets and energy data solutions and provides us with a great platform for growth. 

“Once installed, we estimate our existing meter and battery pipelines will add a combined £70m to the group’s £50m of EBITDA in FY 2020.

“Our metering, data and battery CaRe products allow us to access an addressable market opportunity of c.£1.2bn EBITDA, alongside the significant additional potential provided by our developing CaRe products.

“We remain committed to our people, customers and the communities we serve and are proud of the role SMS plays in helping to deliver a net zero economy.”