Scottish smart meter firm sees surge in revenue

SMART Metering Systems has posted a seven per cent rise in underlying annual pre-tax profits to £22.2 million, on surging revenues, and highlighted its growth ambitions.

The Glasgow-based smart meter company, which serves the household and industrial and commercial markets, yesterday unveiled an 18 per cent jump in revenue to £79.6m for the year to December 31.

It noted its total annualised recurring revenue had increased by 38% to £57m.

Chief executive Alan Foy said: “The scale of this opportunity is clear: we invested more capital in meter assets and added more annualised recurring revenue in 2017 than in the two previous years combined.”

The company said that its total gas meter portfolio, including third-party management assets, increased by 45% last year to 1,273,000. It added that its total electricity meter portfolio increased by 301% to 309,000.

Smart Metering noted its capital expenditure on revenue-generating assets was £122.8m last year, up from £42.5m in 2016.

Mr Foy said: “2017 has been a year of investment in our business – building capacity to grow and deliver for our customers, particularly in the domestic smart meter roll-out. We...are well-positioned to continue making progress in our core markets.”

Chairman Willie Macdiarmid noted the business had “grown to 825 staff”, and thanked employees.

He added that Smart Metering now managed more than two million utility metering and data assets. This portfolio includes more than 420,000 smart domestic meters.

Smart Metering Systems declared a final dividend of 3.46p per share. This makes a total of 5.2p-a-share for the full year, up by 27% on 2016. Shares in the company fell by 2.6% or 18p to 673p yesterday.