Glasgow-based Smart Metering Systems is to hand back furlough cash received from the UK Government after insisting it would pay shareholders their increased dividend.
The firm had suspended installation of smart meters and energy management technology in homes and businesses across the UK due to coronavirus safety restrictions on non-essential work.
It claimed for some employees under the Coronavirus Job Retention Scheme while topping up their wages to normal levels during the shutdown.
But throughout the crisis, it insisted it would still be paying shareholders a dividend which would take their total payout for the financial year to 6.88p a share, a rise of 15%.
Just over a week ago it told investors: "The dividends are well covered by existing long-term and recurring cash flow generation."
Now SMS has agreed to repay the furlough support, saying has continued to make a profit and that a strong cash position allowed it to give back the support it had received.
SMS has contracts to fit technology for public sector organisations, major energy suppliers, private companies and PLCs such as housebuilders and retailers.
SMS said today: "As previously announced, SMS suspended its smart meter installation activities on 22 March 2020 as a result of the developing Covid-19 situation.
"Due to significant uncertainties at that time and the material impact of the cessation of activities on the utilisation of a large number of the Group's workforce, SMS elected to furlough some of its staff and apply for a grant under the CJRS. Over this period, SMS continued to supplement the amounts received to ensure furloughed staff received 100% of their salary.
"As announced on 1 June 2020, SMS resumed non-essential activities, including installation of smart meters and has emerged from the recent uncertainties with a strong financial position.
"The Group's net cash position of £48 million (excluding the grant) at 31 May 2020 is ahead of previous expectations and SMS continues to forecast underlying profitability for the year to 31 December 2020 to be in line with the Board's earlier expectations.
"SMS has therefore taken the decision to return the funds received from the UK Government under the CJRS and has also withdrawn from the scheme forthwith."
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