Latest results

Good operational and strategic progress led by efficiencies and investment

UK: Early preparation helped to deliver a strong first year under new RIIO price controls

  • Total expenditure (“totex”) efficiencies earned in 2013/14 contributed 120 bps to overall UK Return on Equity outperformance of 260 bps
  • Around £70m customer share of efficiencies will help to reduce future bills
  • Regulated investment of £2.0bn contributed to 5% UK RAV growth; up £1.1bn to £24.9bn

US: Benefits from new rate plans in New York and Rhode Island and focused cost control helped to offset general inflationary pressures on underlying costs

  • Return on Equity 9.0% (2012: 9.2%)
  • Capital investment of $2.0bn contributed to 9% US Rate Base growth of $1.3bn to $16.3bn (5% growth excluding working capital increases)

Solid overall financial performance maintaining strong financial position

  • Group Return on Equity 11.4% (2012/13: 11.7%)
  • Value Added1 of £2.1bn or 57.2p per share
  • Adjusted operating profit up 1%, profit before tax up 2%
  • Adjusted earnings per share up 5% to 54.0p
  • Recommended final dividend of 27.54p/share (2012/13: 26.36p); full year dividend expected to be up 2.9% to 42.03p (2012/13: 40.85p), in line with inflation
  • Good cash flow metrics, sustained A- credit ratings and stable gearing

1 ‘Adjusted results’, ‘Value Added’ and a number of other terms and performance measures used in this document are not defined within accounting standards or may be applied differently by other organisations. For clarity, we have provided definitions of these terms and where relevant proforma calculations in the 2013/14 Full Year Results Statement