Smart Metering Systems (SMS) strengthened its position in the still-young smart meter market through a series of acquisitions last year. It bought CH4 and Trojan Utilities to improve its installation capacity and reduce reliance on subcontractors. The acquisition of software and data security provider Qton Solutions should improve IT support for its meters and lead to the development of new customer applications. The group is now well placed to capitalise on an expected increase in smart meter take-up this year, with the government pledging that every home and small business be offered one by 2020.
Installations of the group's patented ADM meters were up 23 per cent to 91,000 units for the year. Meanwhile, the group is continuing to trial the meters outside the UK. Recurring rent from meters also increased. For gas, these revenues were up 13 per cent to £31.5m, while for electricity recurring rent more than doubled to £2.9m. SMS signed eight new contracts for installation and ownership of smart meters with energy groups responsible for supplying to over 2.5m homes.
Analysts at Panmure Gordon are forecasting underlying profit before tax of £23.2m in 2017, giving adjusted diluted EPS of 20.9p (up from £19.6m and 18.86p in 2016).
| SMART METERING SYSTEMS (SMS) | ||||
|---|---|---|---|---|
| ORD PRICE: | 584p | MARKET VALUE: | £523m | |
| TOUCH: | 578-584p | 12-MONTH HIGH: | 637p | LOW: 390p |
| DIVIDEND YIELD: | 0.7% | PE RATIO: | 34 | |
| NET ASSET VALUE: | 74p* | NET DEBT: | 142% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 21.0 | 5.2 | 5.2 | 1.65 |
| 2013 | 27.9 | 7.4 | 7.9 | 2.31 |
| 2014 | 42.4 | 11.0 | 10.5 | 2.82 |
| 2015 (restated) | 53.9 | 17.5 | 17.5 | 3.30 |
| 2016 | 67.2 | 18.2 | 17.3 | 4.10 |
| % change | +25 | +4 | -1 | +24 |
Ex-div: 27 Apr Payment: 1 Jun *Includes intangible assets of £14.6m, or 16p a share | ||||
