National Grid looks to generate growth by building on solid full year results
MIDLAND utility National Grid has said the business can plan for growth in the year ahead after developing a solid development platform.
In the group’s full-year results statement, chief executive Steve Holliday said: “We finished the year in a strong position, delivering a robust cash flow performance, good growth in our asset base and lower gearing.
“This was supported by the increased clarity given by our new price controls and rate plans. By achieving strong efficiencies, we were able to offset the cost of US systems implementation and deliver good overall returns on equity.
“As a result, we continue to build a stronger business from which to deliver healthy returns, and good organic growth to support our commitment to sustainable dividend growth.”
Holliday said the during the year the company had invested over £3.4bn in essential infrastructure but still delivered one of its best years ever in terms of network reliability and resilience.
At the same time, it delivered strong cost efficiencies, particularly in the UK where around £70m of the savings would benefit customer bills starting in 2015/16, he added.
The group’s adjusted operating profit was up 1% at £3,664m (2013: £3,639m), with pre-tax profit up 2% at £2,584m (2013: £2,533m).
Adjusted earnings per share was up 5% to 54p (2013: 51.4p) and the group has recommended a dividend of 27.54p per share (2013: 26.36p). The full year dividend is expected to be up 2.9% to 42.03p (2013: 40.85p), in line with inflation.
National Grid also announced that Nick Winser, its executive director in the UK, would step down from the board after the 2014 Annual General Meeting in July.
Winser will continue with his roles as President of the European Network of Transmission System Operators for Electricity (ENTSO-E) and as chairman of National Grid Electricity Transmission plc and National Grid Gas plc, the two principal regulated operating subsidiaries of National Grid in the UK, through to July 2015 before retiring from the company.
In respect of these responsibilities, he will continue to report to Steve Holliday.
Winser joined the Central Electricity Generating Board in 1983, becoming National Grid’s Director of Engineering in 2001. He was appointed to the Board in April 2003.
Holliday said: “Nick has made an invaluable contribution to the successful development of National Grid in both the UK and US. In recent years he has played a key role in designing and negotiating the recent UK RIIO price controls which should provide enduring value for UK consumers and National Grid shareholders alike through the innovative framework around sharing efficiencies and cost reductions. I am delighted he will continue to contribute to our regulated businesses in the UK and to the broader European industry.”
