A SCOTTISH company that installs smart meters on behalf of energy firms has increased revenue and highlighted a strengthened run-rate with further improvement ahead.
Smart Metering Systems said its Index Linked Annualised Recurring Revenue (ILARR) grew to £91.4 million at April 30, against £85.9m at December 31.
The strengthening of the run-rate in smart meter installation is in line with the group's expectations, it said in a trading update to the City ahead of its annual general meeting, and that it is projecting further improvement over the course of the year.
It noted strong operational performance and continued growth of grid-scale battery pipeline to 710MW, against 620MW in December.
The first 50MW of operational assets started trading in January and has performed “strongly to date”. Also in the pipeline is 40MW expected to begin trading in the third quarter, 260MW of fully secured projects, of which 150MW is currently in construction, and 360MW of sites under exclusivity.
The financial position and full year outlook show liquidity at £63.3m cash in hand against £117.7m in December and banking facilities remain at £420m.
"The board's expectations for full-year 2022 underlying profitability remain unchanged,” the Glasgow-based firm said.
Ian McInally, Cenkos Securities analyst, described ILARR growth as solid, pointing also to the meter installation rate and adding SMS "remains comfortable" with full-year projections.
There was "strong performance of the first 50MW of batteries and further expansion of the grid-scale battery pipeline", he said, adding: “The balance sheet remains strong with £63.3m cash and £420m undrawn facilities. Today’s update confirms continued growth momentum."
Shares in SMS closed down 8p at 839p.
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