Smart Metering ups divi as H1 revenue rises to £63m

Glasgow-based Smart Metering Systems plc (SMS) announced its revenue rose 21% to £62.7 million in the six months ended June 30, 2022, and profit before tax rose 22% to £6.1 million.

Interim dividend will rise 10% to 20.625p, and the firm expects 10% growth in full-year dividend to 30.25p.

“The board expects FY2022 pre-exceptional EBITDA and underlying PBT to be in line with the upgraded guidance given in our trading update announcement on 27 July 2022 …” said Smart Metering Systems in its outlook.

” … we expect the increase in smart meter installation run rates to continue …

” … as a result, the board expects that pre-exceptional EBITDA for FY2023 will be marginally ahead of its previous expectations and, despite the impact of higher interest rates, underlying PBT will be in line with its previous expectations.”

On current trading and outlook, Smart Metering Systems said it continued its strong installation run rates in July and August and is on track to install at least 450,000 smart meters in FY 2022.

At August 31, 2022, the group’s ILARR (index-linked annualised recurring revenue) stood at £94.4 million.

Smart Metering Systems CEO Tim Mortlock said: “The strong half year results again demonstrate the resilience of our business model, which is underpinned by our index-linked recurring cash flows from meter and data assets, and reflect the strong performance of our first grid-scale battery storage project.

“We have made significant progress in executing the strategy set out last Autumn. We are pleased to see continued acceleration in our meter installation run rates, an increase in our smart meter portfolio and a new contract which adds to our smart meter order pipeline.

“Leveraging on our end-to-end platform, we have successfully built and begun to deliver a strong pipeline of grid-scale battery storage projects within a short period of time, with significant additional opportunities from this substantial and growing market.

“Our two recent strategic investments in EV charging infrastructure and energy data are complementary to our existing end-to-end business model and enhance our ability to accelerate other carbon reduction (CaRe) products and services, providing opportunities for further growth over the long-term.

“The global energy market is in a period of extreme turbulence and there is a fundamental need for the CaRe assets we originate and own.

“These assets enable the transition to a low carbon, flexible, secure and, of particular importance at this time to all businesses and consumers, low-cost energy system.

“We remain confident about the future growth prospects for the business.”

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