Smart Metering Systems PLC on Wednesday said it expects annual profit to be marginally ahead of previous expectations as it plans to up its dividend by 10% in 2022.

Smart Metering Systems is a Glasgow-based smart meter and energy management company.

For six months ended June 30, the company said 230,000 smart meters were installed, with average monthly run-rate at more than 40,000 meters, compared to 30,000 meters average per month in 2021.

‘We have a resilient diverse supply chain in place and the meter stock within our UK warehouses to support this continued run-rate,’ SMS noted. It expects to install at least 450,000 smart meters during 2022.

Index-linked annualised recurring revenue grew 8.0% to £93.1 million at June 30 from £85.9 million at December 31.

Chief Executive Officer Tim Mortlock said: ‘Our existing pipeline of meter assets and grid-scale battery storage assets alone is well on track to hit our medium-term growth expectations, with significant additional opportunities for growth in our established carbon reduction asset classes and in developing CaRe products and services.’

SMS expects to pay a dividend of 30.25 pence per share for 2022, representing a 10% increase from 27.50 pence year-on-year, in line with policy.

Net cash at June 30 amounted to £38.6 million.

Looking ahead, SMS expects underlying profitability to be marginally ahead of previous expectations. It said it is confident in the medium term outlook.

Shares were up 0.6% at 917.00 pence each on Wednesday morning in London.

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