SMART Metering Systems (SMS), the gas and electricity metering specialist, delivered a four per cent rise in profits during a “year of transformation” for the business.

The Glasgow-based firm recorded pre-tax profits of £18.2 million as the number of gas and electricity meters and data assets it has under management climbed to more than 1.25m.

SMS said its financial strength had supported three acquisitions, with CH4 Gas Utility and Maintenance Services, Trojan Facilities and Qton Solutions coming on board as it gears up for the UK domestic smart meter roll-out.

SMS, led by chief executive Alan Foy, said revenue increased 25 per cent to £67.2m. Recurring rent from its gas meter portfolio grew by 13 per cent to £31.5m, while income from data assets in gas increased by 17 per cent to £2.6m. On electricity, revenue from meters climbed by 125 per cent to £2.9m, with recurring data revenue up 23 per cent to £4.3m.

Over the course of 2016, the company’s total gas meter portfolio increased by 22 per cent to 881,000, and its electricity portfolio expanded by 166 per cent to 77,000.

Mr Foy said: “We have seen a strong start to 2017 and are well positioned to continue making progress in our core markets. We will continue to invest in meter and data assets and grow our recurring revenue base across both the I&C (industrial and commercial) and smart domestic market segments.”

The company announced that it has appointed David Harris, formerly of British Polythene Industries, as chief financial officer. He replaces Glen Murray with immediate effect.

Shares in SMS closed up 3p at 600p.