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The Markets
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The Markets
by Proactive
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Energy

Smart Metering Systems PLC announces key acquisitions

mart Metering Systems reported a surge in revenue and profits alongside key acquisitions.

Smart Metering Systems Plc (LON:SMS) reported a surge in revenue and profits alongside key acquisitions.

For the year ended December 2015 the energy meter technology company saw revenue increase by 27% to £53.9mln and pre-tax profit rose 60% to £17.5mln.

The group also announced that it had acquired three companies from within the smart meter sector - two smart meter supplies and an IT specialist - for a combined £6.9mln.

Last year, the group increased its gas meter portfolio by 19%, with industrial and commercial meters increasing 75%.

Its electric meter portfolio increased by 142% and its electricity data portfolio increased 31%.

The group also reported a strong start to 2016, signing five framework agreements with independent suppliers to complement the acquisitions.

“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.

“We remain confident in our outlook for the business and market development in 2016,” he added.

Analysts at Cenkos said: “we believe that SMS is well positioned to win a substantial market share with the domestic smart metering rollout programme and this will commence this year.”

The broker’s forecasted adjusted earnings (EBITDA) of 31.8mln remained unchanged.

Shares rose 1.65% to 397.46p.

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