Smart Metering Systems wins Co-op contract as recurring revenue leaps

Smart Metering Systems (SMS) won a new contract from Co-operative Energy on Friday as it reported that annual results will fall in line with expectations.

Co-operative Energy has appointed the AIM-listed company as its preferred supplier to fund and install domestic smart meters in certain defined geographic areas that have a total of 0.33m smart meter points.

SMS also released a trading update for the year ended 31 December, in which the integrated metering services company reported total annualised recurring revenue of £75.3m, up by 32% on the prior year, as Gas meter recurring revenue grew by 19% to £42.9m and data recurring revenue increased 6% to £3.1m.

Meanwhile, in the electricity division, meter recurring revenue nearly doubled to £20.3m and data recurring revenue grew 34% to £9.0m.

Metering and data assets under management increased by approximately 54% to 3.13m over the year, including a 100% increase in domestic smart meters to 0.85m.

"2018 has seen continued growth and we are delighted with another strong period of trading allowing us to deliver for our customers in the fast-growing domestic smart meter market," said chief executive Alan Foy.

Smart Metering Systems' shares were up 0.47% at 640.00p at 0842 GMT.