SMART Metering Systems has highlighted the potential to export technology developed by the Glasgow-based company after it achieved strong growth in the first half.
The company increased pre-tax profits by 60 per cent, to £7.4 million in the six months to 30 June, from £4.6m in the same period last year reflecting a big increase in its UK business.
The growth was driven by a surge in the number of meters that SMS supplies for customers, which include British Gas and Dong Energy.
However, the company also benefited from a big increase in the number of users of the ADM technology it offers. This allows customers to read meters and collect reports on the amount of energy they have used remotely.
Chairman Paul Dollman said the company is positioning the technology to explore markets outside the UK, including water and Liquified Petroleum Gas.
Mr Dollman noted the size of the UK market is set to grow dramatically, as regulatory changes intended to help reduce carbon emissions provide a big boost to demand for sophisticated meters.
He said: “The UK meter assets business continues to present a large market opportunity for significant growth with a substantial proportion of an estimated 1.6 million industrial and commercial gas meters in the UK due to be exchanged for a smart metering solution by 2020 with the added potential of a domestic market rollout of some 22 million domestic gas meters.”
AIM-listed Smart Metering Systems grew the portfolio of gas meters it supplies by nine per cent in the first half, to 661,000, from 607,000 at 31 December.
The company said it continued to feel the benefit of the contract won last year to supply meters to customers of British Gas, which is helping drive portfolio growth.
The number of users of the ADM product increased by 43 per cent, to 59,000 units at 30 June, from 41,000 at 31 December.
Led by chief executive Alan Foy, Smart Metering Systems grew the number of electricity meters it supplies by 64 per cent in the first half, to 19,700, helped by the acquisition of the Utility Partnership business in April last year.
It will pay an interim dividend of 1.1p per ordinary share, up 17 per cent from 0.94p.
First half revenues increased by 37 per cent to £25.8m from £18.9m.
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel