A SCOTTISH company that installs smart meters on behalf of energy firms has posted a significant increase in half-year revenue and profit.

Glasgow-based Smart Metering Systems said the 11 cent rise in revenue and, also under its alternative performance measures, 7% profit before tax increase represented strong results.

Its Index Linked Annualised Recurring Revenue (ILARR) grew to £93.1 million at June 30, against £84.2m the previous year.

Statutory performance measures showed revenue up 21% to £62.7m and profit up 22% at £6.1m.

Tim Mortlock, SMS chief executive, said the “strong half year results again demonstrate the resilience of our business model”, adding that this is which is underpinned by index-linked recurring cash flows from meter and data assets, and reflect the strong performance of its first grid-scale battery storage project.

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“We have made significant progress in executing the strategy set out last Autumn,” he said. “We are pleased to see continued acceleration in our meter installation run rates, an increase in our smart meter portfolio and a new contract which adds to our smart meter order pipeline.

"Leveraging on our end-to-end platform, we have successfully built and begun to deliver a strong pipeline of grid-scale battery storage projects within a short period of time, with significant additional opportunities from this substantial and growing market."

He said: “Our two recent strategic investments in EV charging infrastructure and energy data are complementary to our existing end-to-end business model and enhance our ability to accelerate other carbon reduction (CaRe) products and services, providing opportunities for further growth over the long-term.

“The global energy market is in a period of extreme turbulence and there is a fundamental need for the CaRe assets we originate and own.”

These assets “enable the transition to a low carbon, flexible, secure and, of particular importance at this time to all businesses and consumers, low-cost energy system”.

Smart Metering SystemsSource: London Stock Exchange

He added: “We remain confident about the future growth prospects for the business.”

House broker Cenkos pointed to a meter installation pipeline of 2.42m against a full year last year of 2.55m, which reflected a contract win during the period and net new installations.

An average 38,500 meters per month was installed over the first half with a reported second quarter average install rate of over 40,000 per month.

With the portfolio of grid-scale battery projects increasing to 760MW, of which a total of 360MW is fully secured, there is 190MW under construction.

“The battery storage portfolio has grown to 760MW, with the first 50MW project trading ahead of initial expectations. SMS is especially well-placed to absorb inflationary pressure,” it said.

The full year dividend last year increased to 27.5p with the fourth instalment paid in July, and “in line with the policy to grow dividends at 10% per annum”, a 30.25p dividend is for this full year.

Shares in SMS closed at 904p, up 0.33%, or 3p.