Glasgow-based Smart Metering Systems heats up 2021 divi despite profit cooling

Glasgow-headquartered Smart Metering Systems (SMS) has upped its full-year revenue and dividend, with its new chief executive hailing “impressive” results despite the challenging backdrop.

SMS funds, installs, operates and manages smart meters and carbon-reduction assets, including electric-vehicle chargers and battery-storage systems. It adds that it provides smart energy and carbon-reduction consultancy services to large organisations.

It has revealed that group revenue in 2021 increased to £108 million, up from £103m in 2020. However, amid an exceptional total expense of £6.5m driven by losses on traditional and first-generation smart meters, earnings before interest, taxes, depreciation, and amortisation fell to £46m from £232m, while pre-tax profit reduced to £8m from £195m, and basic earnings per share shrank to 3.2p from 171.65p.

SMS added that in line with its aim to increase the dividend by 10 per cent year on year until 2024, the board is proposing a 27.5p-per-share dividend, up from 25p in 2020.

Chief executive Tim Mortlock – who has taken the reins from Alan Foy, who stepped down on March 1 – said: "Given Covid-19 related operational challenges and recent turbulence in the UK energy market, these are impressive results.

"Our contracted smart meter order pipeline remains solid and now more favourably weighted to larger, well-financed independent energy suppliers… Our strong balance sheet and a resilient, growing smart meter and grid-scale battery pipeline make SMS well-positioned for further growth."

Analyst Ian McInally of house broker Cenkos said SMS – which in 2020 was named one of 1,000 companies to inspire Britain – has reported robust results “during a year with continued pandemic challenges at the beginning, and characterised by volatile energy markets towards the end”.

'Our strong balance sheet and a resilient, growing smart meter and grid-scale battery pipeline make SMS well-positioned for further growth,' the firm says. Picture: contributed.

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