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National Grid PLC on Thursday said a strong performance across the business, reflected in better-than-expected underlying annual profit, underpins plans to invest £60 billion over the next five years.
In response, shares in the London-based electricity transmission network operator rose 2.4% to 1,040.50 pence each in London on Thursday morning.
Pretax profit rose 20% to £3.65 billion in the year to March 31 from £3.05 billion a year prior.
Earnings per share improved by 8.1% to 60.0 pence from 55.5p, or by 1.7% on an underlying basis to 73.3p from 72.1p, ahead of 72.3p consensus.
Revenue fell 7.4% to £18.38 billion from £19.85 billion.
Underlying operating profit increased 12% to £5.36 billion from £4.77 billion a year ago, ahead of company compiled consensus of £5.29 billion.
By division, underlying operating profit rose by 9.2% in UK Electricity Transmission, by 4.4% in UK Electricity Distribution, by 44% in UK Electricity System Operator, by 16% in New England and by 43% in New York. In National Grid Ventures underlying operating profit fell 19%.
Chief Executive John Pettigrew, who steps down in November, said: ‘At a time of international economic uncertainty, National Grid continues to provide stable and predictable growth through our resilient business model.’
Capital investment increased 20% to £9.85 billion from £8.24 billion. Net debt fell 5.1% to £41.37 billion from £43.61 billion.
National Grid recommended a final dividend of 30.88p, resulting in a total dividend of 46.72p, up 3.2% compared to rebased dividend per share of 45.26p last year.
Looking ahead, the company expects total cumulative capital investment of around £60 billion over the five years to financial 2028/29.
Compound annual asset growth of around 10% backed by strong balance sheet should drive underlying EPS compound annual growth of 6% to 8% from the 2024/25 EPS baseline of 73.3p.
For the current financial year, National Grid expects strong operational performance across the roup with underlying EPS expected to be in line with the 6% to 8% CAGR range from the 2024/25 baseline.
CEO Pettigrew added: ‘We’ve made significant progress in the first year of our five-year financial framework, with record capital investment of almost £10 billion, 20% higher than 2024, helping to drive regulated asset growth of around 10% this year. Strong performance across all areas of the business underpins our plans to successfully invest £60 billion over five years.’
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