Smart Metering posts impressive growth in revenue, profits

Revenue and profits rose significantly at Smart Metering Systems in 2015, it reported on Monday, as the firm also announced three acquisitions.

The AIM-traded company said revenue increased 27% last year to £53.9m, and pre-tax profit was up almost 60% at £17.5m.

SMS said its gas and electricity meter counts increased sharply as well - its gas meters by 19% to 723,000 and its electricity meters by 142% to 29,000.

"We remain focused on the continued expansion of our core business while also pursuing the significant opportunities available to SMS in the domestic smart meter market,” said chief executive Alan Foy.

"2016 has started well with the signing of five new domestic smart meter agreements along with three important strategic acquisitions to control our installation capacity in our markets,” he added.

SMS announced separately it had bought three companies for £6.9m, as part of its strategy to grow its meter portfolio - especially in the domestic smart meter market.

The three firms were CH4 Gas Utility and Maintenance Services, Trojan Utilities and Qton Solutions.

SMS was set to pay an initial £2m for CH4 via a share issue, with another £0.9m conditional on three-year performance targets.

The Trojan deal was worth up to £1m, the company confirmed, and the acquisition of Qton was worth up to £2.9m.