Glasgow’s Smart Metering ups revenue to £108m

Glasgow-based Smart Metering Systems plc (SMS) said its 2021 revenue rose 5% to £108.5 million and underlying profit before tax rose 20% to £18.3 million.

In line with the group’s stated policy of increasing its dividend by 10% year-on-year until 2024, it is proposing a 27.5p payout.

SMS said its smart meter installation run rate increased to over 30,000 per month in the second half of the year — and that it is currently installing 9.4% of all new smart meters in the UK.

SMS CEO Tim Mortlock said: “Throughout 2021, SMS has demonstrated the strength of its business model, delivering profit ahead of upgraded expectations, growth in index-linked annualised recurring revenue and concluding the year with a strong cash position.

“Given COVID-19 related operational challenges and recent turbulence in the UK energy market, these are impressive results.

“Our contracted smart meter order pipeline remains solid and now more favourably weighted to larger, well-financed independent energy suppliers, and supported by the extension to our exclusivity agreement with Shell Energy Retail.

“We expect our installation rate to progressively increase throughout the coming year.

“We made excellent progress in the development of our grid-scale battery storage assets.

“The pipeline increased significantly to 620MW, and we finished the year with energising our first 50MW battery site at Burwell – ahead of programme and on budget.

“With construction of our wider secured pipeline progressing well, and our second 40MW site expected to be operational by mid-2022, we will soon be able to demonstrate the attractiveness of the underlying revenue streams and their importance as critical energy infrastructure.  

“Looking ahead, the year has started well, and we are confident with our previously guided expectations for 2022.

“Our strong balance sheet and a resilient, growing smart meter and grid-scale battery pipeline make SMS well-positioned for further growth.

“Lastly, after nearly two decades with the business, Alan Foy stepped down as CEO on 1 March 2022. I, along with the board, wish to thank him for the tremendous work he has done to drive and deliver sustained growth and success to SMS.

“We all wish Alan the very best for the future.”