Smart Metering Systems (SMS) , an AIM-listed firm that provides smart energy meters to homes across the UK, has surpassed 1 million smart meters installed.
In a trading update on Wednesday, the company said it is well positioned for an increase in installation run-rate in the second half of the year and beyond.
Smart Metering Systems has contracts with 12 independent energy suppliers as well as a framework agreement with British Gas and Opus Energy, as part of the UK government’s requirement that all UK households and small businesses be offered a smart meter by 2020.
The update also comes a day after Centrica’s British Gas saw operating profits fall 49% to £399m after “an exceptionally challenging environment,” citing the UK energy price cap, increased demands on cash flows and pension contributions. Shares hit a 22-year low.
Smart Metering Systems on the other hand saw half-year results in line with expectations, with recurring revenues ahead of expectations, up 14.1% at £85.9 million.
It told investors that it expects trading performance to be materially higher in the second half of the year due to the increase in industry-wide smart meter installation rates, and a greater utilisation of its engineering workforce.
The general shift in how we consume energy and in the greater energy sector itself is encapsulated by the stark difference in the performance of these two companies.
A recent report released by wood mackenzie on Tuesday asserted the Global smart meter total is expected to double by 2024, as the impact of distributed generation and energy management tools facilitate the rise of customer-side flexibility.
Alan Foy, Chief Executive Officer, said that momentum in the installation rate is building across the industry, adding: “We are well prepared to increase significantly our installation run-rate in H2 compared to H1, as industry-wide activity picks up.”
"We also continue to experience strong demand as societal, regulatory and environmental factors drive the requirement for smart energy management.”