Smart Metering Systems has announced its financial results for the first half of the year, reporting a rise in both pretax profit and revenue. The company's pretax profit increased to £8.0 million ($10 million), compared to £6.1 million in the same period last year. Revenue also saw growth, climbing to £79.3 million from £62.7 million. One of the key drivers behind this growth was higher rental per smart meter, which contributed to an 18% increase in index-linked annualized recurring revenue to £110.0 million.
Chief Executive Tim Mortlock emphasized the advantages of the company's index-linked revenues, stating that they offer a natural hedge against rising interest rates in the short term while significantly benefiting long-term cash flows.
Looking ahead, Smart Metering Systems aims to install a minimum of 500,000 meters in 2023, with a higher average rental per meter than previously anticipated. The company's earnings before interest, taxes, depreciation, and amortization also saw a positive trend, increasing to £34.1 million from £25.8 million.
In line with its policy, Smart Metering Systems declared an interim dividend of 22.689 pence per share. The company confirmed its expectations for pre-exceptional Ebitda and underlying pretax profit for 2023 while slightly raising its guidance for pre-exceptional Ebitda growth in 2024 to around 20% compared to the previous year.
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