Optimism flowing through National Grid

19th May 2011 07:04

Power grid operator National Grid's profits came in a shade above expectations, in a year where it splashed out a record £3.6bn in capital expenditure.Adjusted pre-tax profit of £2.47bn in the year ended March 31st was up 25% on the £1.97bn achieved the year before, and ahead of market expectations of £2.43bn.Revenue edged up to £14.34bn from £14.00bn a year earlier, some way short of market consensus of £15.14bn. Earnings per share jumped 32% to 63.9p from 48.4p the previous year. The full year dividend has been hiked by 8% to 36.37p from 33.68p the year before; the market had expected the board to be slightly more generous and lift the dividend to 36.57p."We delivered a record level of capital investment in 2010/11 of £3.6bn, with significant projects across our businesses, but particularly in the UK where investment is focused on structural changes to the sources of gas and electricity supply," said Steve Holliday, the group's chief executive.The group expects to plough around £19bn back into the business over the next four years."We have a positive outlook for 2011/12 and expect to deliver another year of good operating performance, although comparative performance will be impacted by the timing differences that benefited 2010/11," Holliday said.---jh