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Smart Metering Systems PLC on Tuesday said it planned further dividend increases as it reported a higher interim profit and payout.
The Glasgow-based provider of end-to-end services in utility connections, smart metering and energy management said pretax profit in the first half of 2023 grew 31% to £8.1 million from £6.1 million a year prior.
Revenue climbed 26% to £79.3 million from £62.7 million.
The company declared an interim dividend of 22.689 pence, up 10% from 20.625p a year prior. The company expects continued 10% dividend growth, to 33.275p for 2023 from 30.25p in 2022.
Looking ahead, Smart Metering Systems is focused on expanding its existing pipelines of meters and grid-scale battery assets. It expects its pipeline to more than double the company’s earnings before interest, tax, depreciation and amortisation over the next four years.
For 2023, pre-exceptional Ebitda and underlying pretax profit are anticipated to remain in line with the company’s own expectations.
Smart Metering Systems expects 2024 pre-exceptional Ebitda to be marginally ahead of its previous expectations with year-on-year growth of around 20% and underlying pretax profit to be in line with its own former expectations. Pre-exceptional Ebitda in 2022 was £63.8 million, up 21% from £52.8 million in 2021.
Chief Executive Officer Tim Mortlock said: ‘Our index-linked revenues provide a natural hedge against increased interest rates in the short term whilst significantly benefitting long-term cash flows.’
Smart Metering Systems shares were 1.5% lower at 659.75p each on Tuesday morning in London.
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