SMART Metering Systems, the Glasgow based meters firm, said installation rates in the opening six months of its financial year have been impacted by a transition to new meters but expects pick-up in the second half.

It said it has now installed one million smart meters and that “momentum in the installation rate is now building across the industry”.

The UK’s largest integrated installer and manager of smart meters provided a half year trading update for the six months to June 30 2019, and said annualised recurring revenue “continued to grow strongly”, increasing by 14.1 per cent during the period to £85.9 million, ahead of expectations.

Alan Foy, Smart Metering Systems chief executive, said: “We have now installed over one million smart meters. Although installation rates in H1 have been impacted by the transition to SMETS2 meters, we have continued to build our recurring revenue base, ahead of our expectations.

“Momentum in the installation rate is now building across the industry.

“Throughout H1, and in line with our longer term strategy, we are retaining the financial, technical and people resources necessary to support a substantial increase in activity in H2 and beyond. We are well prepared to increase significantly our installation run-rate in H2 compared to H1, as industry-wide activity picks up.”

The group’s total number of metering and data assets now under management increased by 10.5% to 3.46m.

Mr Foy also said: “We also continue to experience strong demand as societal, regulatory and environmental factors drive the requirement for smart energy management. The group has a strong portfolio of meter and data assets which generates index-linked, long-term recurring revenues. We are looking at options to monetise the value of a minority of our meter asset portfolio to support our future growth.”

It is “well-positioned for an increase in run-rate in H2 2019 and beyond”. Shares dipped 3% to 502p.