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SMS enjoys benefits of energy efficiency drive

Tim Mortlock: significant progress

Scotland-based meter installer Smart Metering Systems said revenue for the half year was up 21% to £62.7m (H1 2021: £51.7m) as it benefited from demand for more energy efficiency.

Pre-exceptional EBITDA came in 11% higher at £29.1m (H1 2021: £26.1m). Underlying profit before taxation was up 7% to £10.3m (H1 2021: £9.6m).

Since the start of Q2 2022, the run rate for smart meter installations has increased to over 40,000 per month (FY 2021: c.30,000 meters average per month).

The total smart meter portfolio was c.1.9m at 30 June (FY 2021: c.1.7m), including 230,000 smart meter additions in H1 2022.

The contracted smart meter order pipeline at 30 June was c.2.42m (31 December 2021: c.2.55m) reflecting a further contract win and net of installations.

The grid-scale battery portfolio increased to 760MW (31 December 2021: 620MW .

SMS expects FY2022 pre-exceptional EBITDA and underlying PBT to be in line with the upgraded guidance given in its trading update announcement on 27 July.

SMS has developed a low carbon business model

A 10% growth in dividend to 30.25p per share is intended for FY 2022.

Tim Mortlock , chief executive, said: “The strong half year results again demonstrate the resilience of our business model.

“We have made significant progress in executing the strategy set out last Autumn.

“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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