SMS to benefit from push on energy savings
Smart Metering Systems is expected to benefit from a government push to encourage more households and companies to cut their energy bills.
The equipment has already been rolled out to about 30 million homes – more than half the households in Britain – and the Government wants to see them in at least 85% of all homes by 2025, as well as in businesses.
The Scottish firm has already installed 1.9m smart meters and energy companies have ordered another 2.4m. SMS works with firms such as Octopus and Ovo to install and manage their smart meters.
Chief executive Tim Mortlock issued a positive trading update last month and is expected to outline strong growth in sales when the company publishes half-year figures this week.
Brokers expect full-year sales to rise by 7% to £115 million, with profits up 23% to £20.6 million.
The dividend should rise by 11% to 30.3p, representing 3.4% yield, and there is a promise of further double-digit increases in the payout for at least two years.