SMS shares sparked by deal to supply 150,000 meters

SMS chief executive Alan Foy. Picture: Contributed
SMS chief executive Alan Foy. Picture: Contributed
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Shares in Glasgow-based Smart Metering Systems (SMS) jumped yesterday after it won a contract to supply and manage up to 150,000 meters.

SMS, which already has more than a million meters in its portfolio, has signed a framework agreement with gas and electricity supplier First Utility to be its preferred domestic smart meter provider.

The Scottish firm will provide smart meters to First Utility customers as part of the UK government programme, overseen by the Department of Energy and Climate Change, requiring domestic energy supply companies to provide all customers with a smart meter in homes and small businesses by 2020.

READ MORE: Meters firm SMS seals trio of deals as profits jump

Alan Foy, chief executive of SMS, said the smart meter rollout presented significant opportunities for the firm.

“SMS is well positioned for this new market with a strong track record for customer services and asset ownership and management,” he commented.

The company recently made three acquisitions totalling almost £7 million aimed at capitalising on the smart meter rollout.

It acquired installers Trojan and CH4, which have handled over 400,000 domestic smart meters to date for energy suppliers, and Qton, which provides software services.

Shares in SMS rose by 5.2 per cent, or 21.75p, to close at 441.75p yesterday.