Three firms added to portfolio

Acquisitions boost for Smart Metering Systems

Alan FoySmart Metering Systems has acquired three companies for almost £7 million which will expand the Glasgow firm’s asset portfolio.

The acquisitions are meter suppliers CH4 Gas Utility & Maintenance services and Trojan Utilities, together with the IT specialist Qton Solutions. 

CH4 will add 100 engineers and 60 contractors, and Trojan 80 domestic smart gas and electricity installation engineers. IT systems specialist Qton Solutions will help to serve SMS’s contractors, most of whom use its systems already. 

Alan Foy (pictured), chief executive, who was last week voted Scotland’s director of the year in the Institute of Directors Awards, said: “The acquisitions of CH4 and Trojan Utilities are part of the company’s strategy to gain direct control of a large proportion of our installation capacity for ongoing delivery of our customer contracts in the I&C and domestic meter markets.

“This will provide confidence to customers in our delivery model for the new domestic smart metering market. In addition, the acquisition of Qton Solutions allows us to gain direct control and ownership of all software applications used by SMS.”

The announcements coincided with annual results showing underlying profit before tax increased by 38% to £17.4m (2014: £12.6m) on a 27% rise in revenue to £53.9m (2014: £42.4m).

The company has proposed a final dividend of 2.2p per ordinary share making 3.3p for the full year (2014: 2.82p), an increase of 17%.

Mr Foy said: 2015 has been another successful year with substantial progress across all segments of the business. As we celebrate 20 years in operation, SMS has again recorded double-digit growth. During the year we completed the rebranding of the business, bringing all group subsidiaries under the single SMS brand, setting out a simplified integrated gas and electricity offering to clients with the integration of UPL now complete.

“We remain focused on the continued expansion of our core business while also pursuing the significant opportunities available to SMS in the domestic smart meter market. 2016 has started well with the signing of five new domestic smart meter agreements along with three important strategic acquisitions to control our installation capacity in our markets. We remain confident in our outlook for the business and market development in 2016.”

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