National Grid Financial Information

 

 

Preliminary results for year ending 31 March 2009 released 14 May 2009 shows operating profit increased by 12% with pro forma earnings per share increased by 14% and recommending an 8% increase in dividend per share.

Revenue of £15,624m has increased 37% from 2007/2008 (£11,423m). Net debt has risen to £22.7bn at 31 March 2009 compared with £17.6bn for the previous year.

£838m was paid out to equity shareholders in 2009, up from £780m in 2008. In the last 5 years ordinary dividends have grown by more than 80%.

Employee survey

In the annual report much is made of the 91.8% response rate to their employee survey (24,727 employees took part). However, not many details seem to have been released, the following are the only examples used:

In our 2009 employee survey, 57% (2008: 47%) of our employees believed National Grid is a good company for customers to do business with. (page 32)

The 2009 survey reported a 10% increase in the employee engagement index, up to 70%. Improvements were reported across all survey dimensions, with significant improvements in the areas of vision, direction and communications which were key action items from the 2008 survey. Employees continue to believe National Grid's safety culture and supportive management are significant strengths but would like to see improvements on how the Company creates the context for change, raises accountability and takes further steps to create links between performance and reward. Action plans are being developed and will form part of the management annual objective process for 2009/10 to ensure we further build upon this survey success. (page 35)

 

70% (2008: 61%) of respondents considered they were treated fairly by National Grid, while 78% (2008: 76%) of respondents considered that their colleagues treated them with respect and dignity. (page 36)

 

62% (2008: 55%) of respondents considered National Grid acts responsibly in all its business dealings, including environmental management. (page 38)

 

66% (2008: 61%) of respondents considered something would be done if they reported an inappropriate business practice or an ethical issue. (page 39)

 

Quite interesting that Nick Starritt, Managing Director of Sirota Europe, the company who undertook the survey, is an ex-head of HR for BP. Previous to that he was head of financial services in Brussels for a European joint venture between BP and Mobil Oil.

 

I think this is an interesting statement from page 61 of the Annual report:

 

For gas utility businesses in the US, J.D. Power and Associates formulate an annual survey and customer satisfaction rating. In 2008/09, the gas line of business experienced a decline. The business customer satisfaction scores were in the third quartile and residential customer satisfaction scores are in line to be in the third quartile. As our relationship with J.D. Power develops, we plan to implement initiatives that should improve customer satisfaction in the next three years by focusing on: communications and price; corporate citizenship; bill payment and collections; gas and electricity quality; reliability and safety; customer field services; and customer operations.

 

I think this could be interpreted in a number of ways! How can a developing relationship with a survey company improve customer satisfaction?

 

Other companies the board of directors are involved with:

 

Chairman                                 Sir John Parker

 

Chair of the Non-executive Directors Committee – Bank of England, Deputy Chairman of DP World (Dubai), joint Chairman of Mondi plc, a Non-executive Director of Carnival plc and Carnival Corporation, Inc., and the European Aeronautic Defence and Space Company (EADS) and Chancellor of the University of Southampton. Sir John is a former Chairman of P&O Group and of RMC Group plc and a former Chairman and Chief Executive of Harland & Wolff plc and Babcock International Group PLC.

 

Chief Executive                        Steve Holliday

 

Formerly an Executive Director of British Borneo Oil and Gas and a Non-executive Director of Marks and Spencer Group plc (retained fee of £67,000 from M&S).

 

Deputy Chairman                     Bob Catell

 

He is a co-Chair of the Board of the Downtown Brooklyn Partnership and Immediate Past Chairman of the Long Island Association. He is an ex officio Director and Chairman Emeritus of The Partnership for New York City, Inc., past Chairman of the American Gas Association and the US Energy Association (USEA). He is a Vice Chairman of the US National Petroleum Council's Natural Gas Committee and is on the Board of the Business Council of New York, Keyera Energy Management Ltd, Sovereign Bancorp Inc., Advisory Board and JP Morgan Chase Inc., Metropolitan Advisory Board. (retained fee of £56,374 from Keyera Energy, Sovereign Bancorp, JP Morgan Chase and Metropolitan Advisory Board).

 

Finance Director                      Steve Lucas

 

Non-executive Director of Compass Group PLC (retained fee of £82,500 from Compass).

 

Executive Director                   Nick Winser

 

Non-executive Director of Kier Group PLC and co-Chair of the Energy Research Partnership (retained fee for March 2009 of £3,400 from Kier Group).

 

Non-Executive Director            Ken Harvey

 

He is Chairman of Pennon Group plc. Also a former Chairman and Chief Executive of Norweb plc, and a former Chairman of Comax Holdings Ltd, The Intercare Group plc and Beaufort International Group plc.

Non-Executive Director            Philip Aiken

 

Chairman of Robert Walters plc, a Non-executive and Senior Independent Director of Kazakhmys plc and senior advisor to Macquarie Capital (Europe) Limited.

 

Non-Executive Director            John Allan

 

Retires as CFO of Deutsche Post on 30 June 2009, having been appointed to the Management Board following its acquisition of Exel plc in December 2005 where he had been Chief Executive since September 1994. He is Non-executive Director of ISS and will become Chairman of DSG International plc on 2 September 2009. He is a member of the supervisory boards of both Lufthansa AG and Deutsche Postbank and a member of the University of Edinburgh Campaign Board. John was previously Chairman of Samsonite Corporation and a Non-executive Director of PHS Group plc, Wolseley plc, Hamleys plc and Connell plc.

 

Non-Executive Director            Stephen Pettit

 

Non-executive Director of Halma plc and is Chairman of ROK plc. Stephen is also a member of BT plc's Equality of Access Board.

 

Non-Executive Director            Maria Richter

 

Previously Morgan Stanley MD of Corporate Finance Retail Group. Currently a Non-executive Director of Pro Mujer International, an international microfinance organisation, The Pantry, Inc., The Vitec Group plc and The Bessemer Group Inc.

 

Non-Executive Director            George Rose

 

Non-executive Director of SAAB AB and a member of the Industrial Development Advisory Board. Also a former Non-executive Director of Orange plc.

 

Company Secretary                  Helen Mahy

 

Non-executive Director of Aga Rangemaster Group

 

Directors Emoluments - Table 1A

Directors Emoluments - Table 1B

Directors Pensions

Directors Interests in share options

Directors Interests in PSP, DSP and SRA

Directors Beneficial Interests

 

For full details and the tables referenced here, you can download the full report.