We’re running out of superlatives to describe ‘soup to nuts’ gas meter installation and asset management firm, Smart Metering Systems. After a cracking 2011 (see Smart Metering Systems trebles full year profit), SMS grew by a further 25% in the first half of the year to £9.3m, with operating margins expanding by over 5 points to 30.6%. EPS jumped 42% to 2.53p, and management announced a 0.5p a share maiden dividend.
Just as a reminder, the reason we’re interested in SMS is because of its asset management operations, which are built around its ADM smart metering device and associated data management and analysis tools. Though I have waxed lyrical about the perils of the UK government’s smart metering rollout plan (see Smart Meter Madness (6) and work back), the direction of travel is spot on. SMS looks well placed to play its part.
SMS has been a joy for investors, especially those who were in at the AIM IPO in July last year. The company listed at 60p, and its shares are now trading at 210p. OK, this makes the 0.5p div look a bit miserly but my goodness would you care on a 250% share price increase in a little over 12 months?