Smart Metering’s (SMS) first-half results maintained the company’s reputation for reporting solid numbers since its listed on the Alternative Investment Market (Aim) two years ago. Adjusted cash profit rose 37 per cent to £5.5m driven by a big jump in profits from the management of gas meters, and decent growth from the installation of gas meters. The company, which connects, owns and operates meters for major energy companies and energy brokers, grew its meter portfolio by 18 per cent to 401,000 customers as major contract wins in 2012 kicked in. Annualised recurring meter rental, important as it gives earnings visibility, was up 43 per cent to £13m.
Smart Metering aims to benefit from shifting requirements in the UK industrial and commercial gas meter segment. "Customers are looking for data," says chief executive Alan Foy and the company is hoping to capitalise on this with its new ADM smart meter, which offers customers remote meter readings every half an hour. The company has now installed over 8,000 ADM units, since the product first came onto the market in the second half of last year. Trials are also underway in the UK water and LPG markets.
House broker Cenkos forecasts full year adjusted EPS of 7.9p, up from 6.5p in 2012, rising to 10.4p next year.
SMART METERING SYSTEMS (SMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 335p | MARKET VALUE: | £279m | |
| TOUCH: | 330p-340p | 12-MONTH HIGH: | 360p | LOW: 190p |
| DIVIDEND YIELD: | 0.6% | PE RATIO: | 57 | |
| NET ASSET VALUE: | 23p* | NET DEBT: | 102% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 9.3 | 2.54 | 2.60 | 0.50 |
| 2013 | 13.2 | 3.32 | 3.27 | 0.70 |
| % change | +42 | +31 | +26 | +40 |
Ex-div: 16 Oct Payment: 22 Nov *Includes intangible assets of £1.9m, or 2.3p a share | ||||
