Float a smart move for SMS chiefs

SHARES in Glasgow-based Smart Metering Systems (SMS) surged 25 per cent yesterday during the firm's first day of trading on Aim, netting a paper profit of nearly £6 million for its two directors.

Founder and deputy chairman Steve Timoney is sitting on a potential profit of 3.75m from his 30 per cent stake in the gas metering company, while chief executive Alan Foy's 16 per cent holding rose in value by 2m. The paper gains come on top of the 17m the pair have already netted between them by selling shares to allow the company to float.

SMS has raised 10m through its over-subscribed share placing with a number of "big institutional investors", with Foy expecting that the cash haul will allow the company to raise a further 50m through bank financing to fund its expansion.

The firm makes "smart" meters that can be quickly and easily attached to most existing gas meters, sending accurate readings to customers and suppliers every half hour and eliminating the need for estimated bills.

SMS is the first Scottish company to join Aim since January, when former Sigma Capital subsidiary Frontier IP - which helps universities to commercialise their inventions - transferred from the Plus stock market.

The last Scottish company to float on Aim was Duns-based Produce Investments, which raised 15m in November to fund the expansion of its Greenvale subsidiary.

Shares in SMS closed up 15p last night at 75p.