National Grid profit rises, but dividend disappoints

21st May 2015 07:57

Electricity and gas utility group National Grid hailed "another successful year" as it beat profit forecasts for the 12 months to 31 March, though investors were left underwhelmed with smaller-than-expected increase in the dividend.The company recommended a final dividend of 28.16p per share, up from 27.54p paid out the year before but short of the 28.58p expected by analysts.This took the full-year payout to 42.87p per share, up 2% year-on-year and in line with RPI inflation.Despite the disappointment, the company managed to beat estimated with an 11% increase in adjusted pre-tax profits to £2.88bn, ahead of the £2.80bn expected.The company's UK electricity and gas transmission divisions and US regulated activities all reported profit growth for the year, with the UK gas distribution unit the only business to experience a fall.However, reported group profits, unadjusted for currency movements, declined 4% to £2.63bn."Overall, our businesses achieved a strong operating performance and we developed new strategic growth opportunities in transmission and interconnection," said chief executive Steve Holliday.He said the company invested £3.5bn in "essential" infrastructure during the year.Looking ahead, the company said it continues to invest in its UK and US businesses, "driving organic growth, which together with strong returns, support the commitment to a sustainable, growing dividend".The stock was down 0.3% at 900.9p by 08:30 on Thursday.