Finances show interim surge at power network operator, Electricity North West
Stockport-based power network operator, Electricity North West, has seen a surge in half year revenues and profits.
The organisation reported unaudited figures for the six months to September 30, 2024, which revealed a turnover of £302.5m, compared with £276.5m the previous year.
Pre-tax profits jumped from £82.7m in 2023 to £103.5m.
This is mainly as a result of the higher accretion payments on the index-linked swaps in the six months to September 30, 2023. The accretion payments do not occur each year, with the next not due until July 2027.
Net debt increased by £70m over the half year period. This was primarily due to the £60m cash outflow before financing and the £45.4m final dividend payment, net of the £30.1m increase in money market deposits over three months, and the £3.9m increase in debt due to indexation.
The company does not propose to pay an interim dividend for the period. Last year it paid an £18.6m interim dividend.
On August 2, 2024, Iberdrola, SA, the Spanish multinational electricity utility group, signed a deal to acquire 88% of Electricity North West for £2.1bn, or €2.5bn.
The deal valued 100% of the company, including debt, at approximately €5bn.
The Competition and Markets Authority and Ofgem are still conducting the standard reviews of such transactions.
While these regulatory reviews are taking place, the NWEN (Jersey) group of companies, including ENWL, are to be held separate from Iberdrola and its subsidiaries and will continue to operate as independent businesses.
Electricity North West said, at the date of approval of these latest financial statements, this transaction has had no impact on the financial position or performance of the company or group.
