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 Added 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
Steve Holliday, Chief Executive, said: "National Grid delivered a solid year of financial performance, led by a good start to our eight year price controls in the UK and consolidation of underlying operational improvements in our US operations. During the year we invested over £3.4bn in essential infrastructure while delivering one of our best years ever in terms of network reliability and resilience. At the same time, we delivered strong cost efficiencies, particularly in the UK where around £70m of the savings will benefit customer bills starting in 2015/16."
