SMART Metering Systems has posted a nine per cent rise in first-half profits on a 27% jump in revenues, with chief executive Alan Foy hailing the period as an “outstanding one” for the company.
The Glasgow company, which now employs more than 940 people across the UK, made pre-tax profits of £10.1 million in the six months to June, up from £9.3m in the previous first half.
Smart Metering, established in 1995, installs, owns and operates gas and electricity meters on behalf of major energy companies.
Mr Foy said the roll-out of smart meters had “continued to build pace”, with the company increasing its portfolio by more than 267,000 in the six months to June. He noted this had resulted in the overall ownership of more than 690,000 smart meters nationwide.
Mr Foy added that, at the end of the second quarter, there were around 12.5 million smart domestic meters installed in the UK. SMS was installing around 11% of the current industry-wide run rate of circa 1.25 million meters per quarter, he noted.
Energy supply companies are required by the UK Government to take all reasonable steps to roll out smart meters to all of their household and small business customers across the country by 2020.
Smart Metering declared the domestic market remained a “clear focus” for it, highlighting increased consumer awareness of energy bills and levels of supplier-switching.
It said: “This year, consumer interest in energy usage and costs has continued to rise, and this is particularly reflected in increases in the volume of supplier-switching across the market. In the six months to June 2018, 2.1 million retail gas consumers switched energy supplier along with 2.6 million retail electricity consumers, with a resultant net continuation in the trend for consumers moving to small and medium-[sized] energy suppliers.
Smart Metering added: “This is a trend that has indeed accelerated in recent years as the competitive energy supply market has developed. As a result, the domestic market share is today split at [circa] 22% held by small and medium suppliers, an increase from 17% at the start of 2017, and [circa] 78% by larger suppliers. We continue to work with all suppliers as they target the Government’s 2020 completion date.”
The company has raised its interim dividend by 15% to 2p a share. Its shares yesterday dipped by 13p or 2.1% to 595p.
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