SMART Metering Systems is on course to record a 40% rise in profits for last year after increasing its meter management portfolio by 36% to 468,000 in the course of 2013, the Glasgow-based company has revealed.

The company said the number of meters in its industrial and commercial portfolio grew by more than 118% over the 12 months to the end of December.

"SMS anticipates that it will deliver growth in line with current market expectations," it told investors in a trading update.

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Current City expectations are for pre-tax profit of around £7.3 million for 2013, up from £5.2m in 2012.

SMS boosted investment by 44% last year and spent £2.5m in December on improving its asset base and capital expenditure.

More than 16,000 of the company's smart meters, or ADM devices, are now deployed in the UK, it said.

But the company has ambitions to build markets further afield in places including South Africa, the Philippines and the United States.

It is involved in 17 trials of the ADM device in five countries, with three more in the pipeline.

In November SMS announced former John Menzies finance director Paul Dollman had been appointed chairman.

Shares in the Alternative Investment Market-listed company closed down 2.5p or 0.78% at 318.50p.