SSE sees 25% drop in pre-tax profit
Gas and electricity group SSE saw its adjusted profit before tax fall 25.4% for the half year to September.
Gas and electricity group SSE saw its adjusted profit before tax fall 25.4% for the half year to September.
Pre-tax profit dropped from £385.5m in 2010 to £287.4m for the same six month period this year, mainly as a result of wholesale gas prices being 40% higher than in the previous year.
The firm said it took the decision to shield household customers from rising wholesale energy prices for as long as practical before implementing a price increase on 14 September.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely 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
Company chairman Lord Smith of Kelvin said: "There is no doubt that 2011 has been characterised by turmoil in the global energy markets, economic uncertainty across much of the world and widespread concern about the financial outlook for customers, companies and countries. This is not a straightforward time in which to do business.
"SSE's half-year results reflect the impact of a number of these issues, especially the high wholesale cost of gas which eventually necessitated the increase in household prices that unfortunately had to be made in September.
"We are expecting to report a moderate increase in adjusted profit before tax in our full-year results next May."
Despite the drop, the company increased its interim dividend by 7.1%.
NR
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Zoopla: Property tax speculation creates uncertainty for a third of home buyers
Property tax rumours could impact homes valued at over £500,000, potentially triggering a housing market slowdown, Zoopla has warned
-
Is the Financial Conduct Authority really contacting you? How to spot a scam
Fraudsters are impersonating the City watchdog to steal money from older people. Here is how to spot the scammers.