Pre-tax profits boom at National Grid

WARWICK-based power utility National Grid has seen a significant climb in pre-tax profits in its full-year results.

In the 12 months ended March 31, 2011, the company reports a rise in pre-tax profits of 25% and a rise in earnings per share of 4%.

It says that operating cash flow is up 12% at £4.7bn while net debt sits at £18.7bn, following a £3.2bn rights issue last June.

Capital investment in 2010/11 was £3.6bn, up by £265m, with expected investment of around £19bn in the four years to March 2015.

Chief executive Steve Holliday said: “We have made good progress this year against our priorities and delivered good financial performance despite some challenging headwinds.

“Continued investment in our key regulated markets and sustained focus on improving returns have delivered benefits.

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“During the year, we invested a record £3.6bn of new capital and at the same time maintained tight management of controllable operating costs.

“The restructuring of our US businesses will underpin our progress and we are already seeing operational benefits from these changes.

“While several rate cases will need further review, we are now positioned in the US to drive further improvements to our overall returns.

“As a result, we have a positive outlook for 2011/12 and expect to deliver another year of good operating performance, although comparative performance will be impacted by the timing differences that benefited 2010/11.”