National Grid reports solid full year progress

FTSE 100-listed electricity and gas firm National Grid revealed a solid increase in annual pre-tax profit after a continued strong performance from the UK and progress at its US operations.

Total pre-tax profit increased to £2.9bn for the year ended March 31st 2013 from £2.6bn a year earlier. Revenue for the year increased to £14.36bn from £13.83bn before. Total operating profit rose to £3.75bn from £3.54bn.

The group said it expects to deliver another year of good operating performance and dividend growth.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Chief Executive Steve Holliday said: "This has been an important year for National Grid with the successful conclusion of several major strategic priorities. During the year we secured significant regulatory outcomes, covering over 80% of our asset base, creating much greater clarity for our businesses."

"At the same time, we delivered a record operating profit and robust cash flow performance despite another year of significant storms in the US. As a result, we have built a strong platform from which to deliver organic growth and support our new dividend policy."

Basic earnings per share increased to 62.6p from 55.6p before.

Looking ahead Holliday added: "In the UK, we are positioned to make a strong start to the new eight year regulatory regime. We are focused on meeting our regulatory commitments by operating efficiently and investing in essential infrastructure, while delivering high standards of customer service, driving good returns for shareholders."

"In the US, we are focused on securing the benefits of our recent rate agreements and investment in new systems while delivering enhanced customer service and network growth which will help us to build on our significant progress to date."

"Overall, we expect to deliver another year of good operating performance and dividend growth."

National Grid has recommended a final dividend of 26.36p from 25.35p a year earlier.

The group said the outlook for its UK Transmission for the full year 2014 is positive, but impact of timing adjustments is expected to create some headwinds for the comparative performance.

CJ