SMART Metering Systems (SMS), the Glasgow-based firm that floated on Aim last year, yesterday hailed a “solid 2011” and said revenues continue to grow thanks to the snowball effect of its rental incomes.
Speaking after the company published final results for 2011, chief executive Alan Foy said that so far this year the firm was installing slightly more meters than the 120 to 130 a day it managed previously.
At the year end, SMS had rolled out 254,000 of its gas meters, helping profits before tax and other items reach £5.7 million, up from £2.9m in 2010. Revenues grew by 29 per cent to £16m.
Foy said SMS continued to install meters on a rental basis, providing it with recurring income year on year that would continue to grow.
“The growth in our business is due to accumulation of meter assets and the rental we get from them on an annual basis. We are starting to see a compound growth as any meters installed last year will provide a full year’s revenue this year.”
He said the firm already installs meters for 15 out of the 21 UK gas suppliers and had working relationships with the other six, which it hopes to add as customers soon.
This year it is trying to persuade its clients to adopt a more advanced metering system, to be supplied alongside data services.
Foy said the new devices could be a “Trojan horse”, moving the firm into the industrial and commercial market.
“We are looking forward to capitalise on more than four years’ product of research and development,” he said.
“In 2012 we will continue to focus on accumulation of meter assets organically and potentially through new contract wins,” Foy said.
SMS said the firm intended to pay a maiden dividend in the autumn.