NATIONAL POWER PLC PRELIMINARY RESULTS for the year ended 26 March 1995.--(BUSINESS WIRE)-- NATIONAL POWER PLC PRELIMINARY RESULTS for the year ended 26 March 1995 HIGHLIGHTS Result Last Year Change GBPm GBPm % Turnover 3,953 3,641 +9 ===== ===== Profit before tax 735 632 +16 and exceptional item Exceptional item (30) 45 ----- ----- Profit before tax 705 677 +4 ===== ===== Investments 509 1,050 -52 Earnings per share: before exceptional item 43.6p 37.3p +17 after exceptional item 41.2p 40.9p +1 Dividend per share 15.45p 12.50p +24 Dividend cover 2.8 times 3.0 times Debt/equity ratio Debt/Equity Ratio A measure of a company's financial leverage calculated by dividing long-term debt by shareholders equity. It indicates what proportion of equity and debt the company is using to finance its assets. 9% 13% -4 MAIN POINTS - Dividends up 24% in line with prospectus expectation, and earnings per share before exceptional item up 17% - Manpower productivity up 24%, and cost savings continue - Profits up 16% before tax and exceptional item - Continuing progress with Combined Cycle A combined cycle is characteristic of a power producing engine or plant that employs more than one thermodynamic cycle. Heat engines are only able to use a portion of the energy their fuel generates (usually less than 50%). The remaining heat from combustion is generally wasted. Gas Turbines (CCGT CCGT Combined Cycle Gas Turbine CCGT Chicago Center for Green Technology CCGT Combined-Cycle Generating Technology CCGT catalytic combustion gas turbine ) development programme - Purchase and cancellation of 98.5 million shares from HM Treasury to enhance future earnings and dividends per share - GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 64 million investment in Hub Project in Pakistan Pakistan (păk`ĭstăn', päkĭstän`), officially Islamic Republic of Pakistan, republic (2005 est. pop. 162,420,000), 310,403 sq mi (803,944 sq km), S Asia. and good progress with other international project developments. OPERATING REVIEW ================= OVERVIEW -------- Our full year results represent a good performance against continuing pressures on market share from new entrants' combined cycle gas turbine turbine, rotary engine that uses a continuous stream of fluid (gas or liquid) to turn a shaft that can drive machinery. A water, or hydraulic, turbine is used to drive electric generators in hydroelectric power stations. (CCGT) plant and from nuclear stations, and with a Pool price cap in place. The results reflect our sustained drive for lower costs and significant efficiency improvements at our stations. Before the exceptional item, profits are up 16% and earnings per share are up 17%. Recommended dividends are up 24% for the full year. Manpower productivity was up once again, improving by 24%. Our market share fell from 35% to 34%. We achieved our target level of contract cover for our output, and direct sales to customers more than doubled to GBP594 million. Turnover up by 9%. Our CCGT development programme is continuing: Deeside Deeside is the name given to the conurbation of towns that are on, or near the river Dee in Flintshire north Wales these include, Connah's Quay, Mancot, Shotton and Queensferry. The population is around 32,000, with the majority (16,526) living in Connah's Quay. entered commercial service during the year, Little Barford The English village of Little Barford in Bedfordshire lies on the county boundary with Cambridgeshire, adjacent to the town of St Neots. The village itself is very small and is close to the east bank of the River Great Ouse. is now expected to enter full commercial service later this year, and construction of Didcot is on programme. Our Drax Drax could refer to:
FGD Flue Gas Desulfurization FGD Focus Group Discussion FGD Feature Group D FGD Forged FGD Familial Glucocorticoid Deficiency ) project continues to make satisfactory progress towards completion of all six units in mid 1996, demonstrating our commitment to and investment in cleaner electricity. Our International Business has marked up some solid achievements. Our American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of and Portuguese assets are performing well. New assets came on stream in the US, and our overseas businesses made a positive operating contribution. Financing arrangements were completed for the 1,292 MW Hub power station project in Pakistan, in which we have the largest shareholding. We have other potential independent power projects at various stages of evaluation and negotiation in a number of countries including China and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. . In conjunction with HM Treasury's sale of its remaining 40% shareholding in the Company in March 1995, we purchased and cancelled can·cel v. can·celed also can·celled, can·cel·ing also can·cel·ling, can·cels also can·cels v.tr. 1. To cross out with lines or other markings. See Synonyms at erase. 2. 98.5 million shares to achieve earnings per share enhancement. The purchase price was adjusted to reflect the benefit to HM Treasury of accelerated payment relative to the instalment basis of the international offer. We achieved listing of our shares on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. in March, designed to raise the profile of the Company in the US. Regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. issues continue to demand significant management attention, and represent major continuing uncertainty. THE UK BUSINESS =============== GENERATING PLANT Generating capacity on 1 April 1995 was 20,243 megawatts, following the planned closure of plant and the start of commercial service of additional CCGT capacity. Killingholme Killingholme is an area of Lincolnshire, comprising the villages of North Killingholme and South Killingholme. It is the site of two oil refineries, the Humber Refinery and Lindsey Oil Refinery, and an liquid petroleum gas storage facility (180 metres underground).[1]. CCGT, and Deeside CCGT which entered commercial service towards the end of the year, are both performing well. Whilst a generic design defect defect - bug with the gas turbines will delay the entry into commercial service of our Little Barford power station and our formal acceptance of the plant, it is not believed that this will materially affect either the Company's earnings or achievement of our environmental emission EMISSION, med. jur. The act by which any matter whatever is thrown from the body; thus it is usual to say, emission of urine, emission of semen, &c. 2. targets. Construction of our fourth CCGT project at Didcot with a generating capacity of 1,326 MW is progressing well. We are assessing the option to modify our 2,000 MW oil-fired adj. 1. Using oil as a fuel; as, an oil-fired furnace s>. Adj. 1. oil-fired - fueled by burning oil; "an oil-fired furnace" fueled - heated, driven, or produced by burning fuel oil-fired Pembroke Pembroke, town, Canada Pembroke (pĕm`brōk), town (1991 pop. 13,997), SE Ont., Canada, NW of Ottawa, on the Ottawa River. It is a lumbering center and also has steel and electric-products factories. Power Station to burn emulsified hydrocarbon hydrocarbon (hī'drōkär`bən), any organic compound composed solely of the elements hydrogen and carbon. The hydrocarbons differ both in the total number of carbon and hydrogen atoms in their molecules and in the proportion of hydrogen fuels, and progressing the necessary consent and authorisation applications. The applications include the installation of FGD equipment and other appropriate technologies that will allow the power station to meet new plant standards as defined by HM Inspectorate in·spec·tor·ate n. 1. The office or duties of an inspector. 2. A staff of inspectors. 3. An inspector's district. inspectorate Noun 1. of Pollution (HMIP HMIP Her Majesty's Inspectorate of Pollution (UK) HMIP Her Majesty's Inspectorate of Probation (UK) HMIP Her Majesty's Inspectorate of Prisons HMIP Hierarchical Mobile Internet Protocol ), who have decided that in principle the Company's emission control The selective and controlled use of electromagnetic, acoustic, or other emitters to optimize command and control capabilities while minimizing, for operations security: a. detection by enemy sensors; b. mutual interference among friendly systems; and/or c. proposals constitute best available techniques not entailing excessive costs. CONTRACTS The majority of output for the year was hedged with the Regional Electricity Companies (RECs), and most of the remainder with large customers. Following the widening of the non-franchise market in April 1994, our direct sales to large customers more than doubled to GBP594 million. REGULATION With regard to the Pricing Undertaking given to the Regulator regulator, n the mechanical part of a gas delivery system that controls gas pressure that allows a manageable flow of drug vapor to escape. regulator see reducing valve. in February February: see month. 1994, the annual average time-weighted Pool price at 2.40p/kWh was 2.5% below that embodied em·bod·y tr.v. em·bod·ied, em·bod·y·ing, em·bod·ies 1. To give a bodily form to; incarnate. 2. To represent in bodily or material form: in the Undertaking and the annual average demand-weighted Pool price at 2.64p/kWh was 1.1% above. In response to the Regulator's request for comments on the outturn, the Company has reaffirmed its view that the high levels of availability payments in January January: see month. 1995 were unforeseen at the time of the Undertaking, and that the unplanned outages at two of Nuclear Electric's power stations, which had a significant effect on availability payments, represent an unforeseen and exceptional circumstance Circumstance or circumstances can refer to:
With regard to the Disposal Undertaking to use all reasonable endeavours to sell or dispose of dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. around 4,000 MW of coal or oil- fired plant, detailed discussions have progressed on the small number of approaches which offered the prospect of achieving a satisfactory transaction having regard to shareholder value. A limited number of discussions are continuing, including with the Regulator on the structure of possible deals and the question of regulatory comfort. In parallel, the Company is giving more detailed consideration to the feasibility of fulfilling the Undertaking by means of a demerger demerger n (Comm) → Abspaltung f, Demerger m of 4,000 MW of generating capacity into a separate Company. A further report on progress with the Undertaking will be made to the Regulator in the Summer. ENVIRONMENT Since privatisation Noun 1. privatisation - changing something from state to private ownership or control denationalisation, denationalization, privatization social control - control exerted (actively or passively) by group action , over GBP1.7 billion has been spent or committed on projects which will improve the Company's environmental performance, and our programme of environmental improvement projects at existing stations is progressing well. Following submission of our plans earlier in the year, discussions are continuing with HMIP regarding its objective that existing coal and oil-fired stations should meet new plant standards or their equivalent by 2001. Our third annual Environmental Performance review will be published shortly. It will demonstrate our commitment to the environment, and report on progress against overall company and plant-by-plant targets set for the year. COMPETITION Our sales of electricity through the Pool fell 2% to GBP3,187 million and our market share fell to around 34%, down from 35% last year and 46% in 1990/91. Whilst we note that new entrants continue to announce plans for additional gas fired power stations for commissioning in the late 1990s, the Company is pursuing its own investments in new capacity. We expect our own projects, including the prospective conversion of Pembroke power station, to be highly competitive in the market for `cleaner electricity' and to reinforce the Company's position as a low cost producer. We are confident that we will be in a good position to compete in a market where the consequences of long term overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. remain a concern. INTERNATIONAL BUSINESS DEVELOPMENT ================================== Following our American and Portuguese investments last year, arrangements were completed during the period for the financing of the Hub 1,292 MW oil-fired power station project under construction in Balochistan Balochistan or Baluchistan Province (pop., 1998: 6,511,000), southwestern Pakistan. Its capital is Quetta (pop., 1998: 560,307). Its landscape includes mountains, notably the Sulaiman and Kithar ranges; barren, flat plains; arid desert; and marshy swamps. , Pakistan. The project has been led by National Power and Xenel Xenel is a diversified company based in Jeddah, Saudi Arabia. Founded in 1973 by the four sons of Abdulla Alireza who headed the locally renown House of Alireza, Xenel - a spelling variation for family patriach, the late Zainal Alireza - grew by establishing multiple joint ventures Industries Limited of Saudi Arabia Saudi Arabia (sä  `dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. and involves a number of other
international companies. As the largest shareholder we have a 25%
interest. Operation and maintenance of the power station will be
undertaken by a subsidiary of National Power. This is Pakistan's
first significant power project in the private sector. Electricity from
the power station will be sold to the Water and Power Development
Authority Water and Power Development Authority (WAPDA) is the main government agency responsible for developing water resources, dams and electrical power in Pakistan.WAPDA was created in 1958 as a semi autonomous body for the purpose of carrying out accelerated and unified under a 30-year power purchase agreement guaranteed by the Government of Pakistan Government of Pakistan (Urdu: حکومتِ پاکستان), The Constitution of Pakistan provides for a Federal Parliamentary System of government, with a President as the Head of State and an indirectly-elected Prime . In the US, the Hartwell plant in Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. came on stream in April 1994, and the Oyster Creek Oyster Creek may refer to:
tr. & intr.v. gas·i·fied, gas·i·fy·ing, gas·i·fies To convert into or become gas. gas combined cycle plant project in Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , in which we have a small equity interest. In India, we are in an Anglo-Indian An·glo-In·di·an adj. Of, relating to, or between England and India. n. 1. A person of English and Indian descent. 2. A person of English birth or ancestry living in India. 3. joint venture seeking to develop a 1,000 MW coal-fired Adj. 1. coal-fired - fueled by burning coal; "a coal-fired ship" coal-burning fueled - heated, driven, or produced by burning fuel power station in Andhra Pradesh Andhra Pradesh (än`drə prä`dāsh), state (2001 provisional pop. 75,727,541), 106,052 sq mi (275,608 sq km), SE India, on the Bay of Bengal. The capital is Hyderabad. ; and in China, we are part of an Anglo-Chinese consortium seeking to develop a coal-fired project of approximately 2,600 MW in Jiaxing Jiaxing (jyä`shĭng`) or Kashing (kä`shĭng`), city (1994 est. pop. 227,600), N Zhejiang prov., SE China, at the junction of the Grand Canal, the Huangpu River, and the Hangzhou-Shanghai RR. , eastern China. A range of prospective further opportunities are under review. FINANCIAL REVIEW ================ All comparisons with the equivalent period last year are based on results before the exceptional item in each period, an exceptional cost of GBP30 million this year compared with a GBP45 million credit last year in respect of a release of a provision for pension costs. TURNOVER Turnover and sales performance of the UK Business were in line with expectations. Turnover increased by 9% to GBP3,953 million mainly due to a doubling of direct sales to large customers. During the year, availability payments through the Pool increased by GBP510 million to GBP561 million, mainly as a result of unplanned outages at two nuclear power stations This is a list of major nuclear power plants in all countries in the world. This is an incomplete list. You can help Name of power station Installed capacity in MW Country Atucha I nuclear power plant 357 Argentina in early 1995. Sales of gas increased to GBP122 million. COSTS The majority of costs relate to UK Business, and total operating costs operating costs npl → gastos mpl operacionales rose 10% to GBP3,184 million. The rise was attributable principally to increases in electricity purchases from the Pool due to the doubling of direct sales, higher gas purchases and higher depreciation charges, offset by lower total fuel costs, and lower costs for repairs, maintenance, rents, rates and insurance, and the impact on staff costs of higher productivity. - Fuel costs of GBP1,415 million were 9% lower, reflecting the fall in output and a 7% reduction in the fuel cost per unit as output from CCGT plant increased. - Purchases through the Pool for supply to direct customers more than doubled to GBP468 million, and related use of system charges also more than doubled. - Manpower productivity increased by 24%, and staff numbers fell from 6,064 to 5,097 at 31 March 1995. Power station running costs running costs npl [of business] → gastos mpl corrientes [of car] → gastos mpl de mantenimiento running costs npl [of business and overheads were reduced by 16% to GBP411 million, reflecting the continuing drive to secure efficiency improvements. - Depreciation charges increased by 38% to GBP317 million with the commissioning of CCGT power stations and FGD equipment at Drax, and a GBP31 million charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the permanent diminution Taking away; reduction; lessening; incompleteness. The term diminution is used in law to signify that a record submitted by an inferior court to a superior court for review is not complete or not fully certified. in the value of a power station. INTEREST COST Net interest payable increased by 24% to GBP72 million, due to the premium of GBP30 million paid on early redemption in August 1994 of the GBP350 million high-interest Adj. 1. high-interest - (used of loans) charging a relatively large percentage of the amount borrowed low-interest - (used of loans) charging a relatively small percentage of the amount borrowed bearing HM Government debt injected in·ject·ed adj. 1. Of or relating to a substance introduced into the body. 2. Of or relating to a blood vessel that is visibly distended with blood. injected 1. introduced by injection. 2. congested. prior to privatisation. The premium is treated as an exceptional item. PROFIT BEFORE TAX Profit before tax and exceptional item increased by 16% or GBP103 million. Of the increase, GBP77 million came from the UK business and GBP8 million came from our overseas associate businesses. EARNINGS PER SHARE Earnings per share increased by 17% to 43.6p. The effective tax rate before the exceptional item remained unchanged at 24.5% after taking account of credits in respect of earlier years of GBP52 million (1994: GBP5 million). DIVIDENDS An interim dividend of 4.35p was paid on 10 January 1995. The Directors are recommending a final dividend of 11.10p per share payable on 27 July July: see month. 1995 to shareholders and interim rights holders registered on 6 July 1995, making a total net dividend of 15.45p for the year. This is a 24% increase on last year. Dividend cover is 2.8 times. The shares will go ex-dividend Ex-Dividend The trading of shares when a declared dividend belongs to the seller rather than the buyer. Notes: A stock trades ex-dividend on or after the ex-dividend date (ex-date). on 19 June June: see month. 1995. The dividend policy of the Group remains unchanged. The Directors expect to reduce dividend cover to 2.5 times within the next 18 months. Thereafter we expect dividend growth broadly to reflect growth in earnings. CURRENT LIQUIDITY Net borrowing at the end of March 1995 fell to GBP229 million. The gearing ratio Gearing Ratio A general term describing a financial ratio that compares some form of owner's equity (or capital) to borrowed funds. Gearing is a measure of financial leverage, demonstrating the degree to which a firm's activities are funded by owner's funds versus creditor's funds. fell from 13% to 9%. Cashflow from operating activities was GBP1,246 million compared with GBP857 million. Reductions in coal stocks released GBP240 million in cash. Financing activities utilised GBP832 million. Of this, GBP453 million was required for the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 98.5 million shares from HM Government and GBP380 million was used to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. the HM Government Bonds. Dividends, interest and tax payments were GBP301 million compared with GBP325 million last year. A revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility put in place in 1990 and reduced in June 1991 from GBP1,500 million to GBP600 million was cancelled, and was replaced during the year with a new GBP500 million facility with 25 relationship banks on better terms. FINANCIAL POSITION Our policy remains to secure at least 50% of our borrowings at fixed rates. At the year end, our fixed rate borrowing comprise GBP200 million 10.625% Euro Sterling Bonds due 2001, GBP244 million 6.25% Convertible Subordinated Bond A Subordinated bond is a bond that has a lower priority than other bonds of the issuer in case of liquidation during bankruptcy. In case of liquidation, there is a hierarchy of creditors. First the liquidator is paid, then government taxes, and so on. and US$ 300 million 6.25% Euro Dollar Bonds. The HM Government 12% GBP350 million Bonds were redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. in August 1994. The Convertible Subordinated Bonds Subordinated bonds Securities that fall after others in priority of claims on the entity in the case of financial distress. facilitated the purchase of the HM Government Bonds during the year. Some proceeds of the US$ 300 million 6.25% Euro Dollar Bonds were used to finance our investment in the Hub power project. Short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. borrowing requirements are met through uncommitted credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities with relationship banks. INVESTMENTS Capital investments were GBP509 million, and included expenditure on our second and third CCGT projects, and installation of flue gas desulphurisation equipment at Drax. Our 25% interest in the 1,292 MW Hub Project in Pakistan cost GBP64 million. SHARE PURCHASE The Company purchased 98.5 million shares in conjunction with HM Treasury's sale of its remaining holding in the Company, at a total price of GBP453 million. The shares purchased have been cancelled and the Company's issued share capital has been reduced by the nominal amount of the shares. The purchase will enhance earnings and dividends per share Dividends per share Dividend paid for the past 12 months divided by the number of common shares outstanding, as reported by a company. The number of shares often is determined by a weighted average of shares outstanding over the reporting term. for all shareholders, and does not change the Company's UK and International business development strategies, for which sufficient financial resources remain available. SHAREHOLDER VALUE Our purpose as a Group is to provide our shareholders with a sustained growth in their investment in the long term. Since privatisation in 1991 we had delivered by March 1995 a return on shareholders' investment of 128% which was two and a half times the 48% growth in the FTSE 100 Index FTSE 100 Index A market-weighted index of the 100 leading companies traded in Great Britain on the London Stock Exchange. The Financial Times . The performance over the 1994/95 financial year was however affected by the impact on our share price of a statement by the DGES DGES Director General of Electricity Supply (UK) on 7 March 1995 in relation to REC price controls. Our fully paid share price fell from its all time high in 1994 of 518p to 430p by the year end, but had risen to 463p by 11 May. CURRENT TRADING AND OUTLOOK =========================== Trading in the current year is continuing in a satisfactory manner, in line with Directors' expectations at the time of the prospectus for HM Treasury's share sale earlier this year. The Directors believe that the Company has a number of strengths which they expect will slow the Company's loss of market share in the short to medium term and will stabilise Verb 1. stabilise - support or hold steady and make steadfast, with or as if with a brace; "brace your elbows while working on the potter's wheel" brace, stabilize, steady its market share thereafter. The Company's four CCGT power stations totalling 3,000 MW of capacity will make a growing contribution to output, the Company has an increasingly efficient portfolio of coal-fired stations, completion of the FGD installation at Drax will provide 4,000 MW of 'cleaner coal' capacity, and conversion of Pembroke could provide a low-cost future generation option. Meanwhile, we will continue with our efficiency-improvement programmes. The Directors continue to believe that the Company will be able to build international businesses which contribute at an increasing rate and materially in the medium term, to the Company's earnings. The Directors intend to keep under review possible further share purchases or other means of ensuring that the company's capital structure remains appropriate to its business. The Regulator's future decisions and actions, particularly in relation to the Disposal Undertaking, continue to represent the major uncertainties in relation to the Company's short term prospects. However, the Directors believe that the Company's financial and other strengths, which underpin the performance of its UK Business and are assisting in building its international Business, will contribute to the Company's continuing sound financial performance. -0-
NATIONAL POWER PLC
Profit and Loss Account
Note Yr ended Yr ended
26 March 27 March
1995 1994
GBPm GBPm
Turnover - continuing operations 2 3,953 3,641
Operating costs 3 (3,184) (2,907)
------------------
Operating profit - continuing
operations 3 769 734
Income from interests in associated
undertakings 8 1
Net interest and redemption premium 4 (72) (58)
---------------------------------------------------------------
Profit on ordinary activities before
taxation and exceptional item 5 735 632
Exceptional item 4 (30) 45
---------------------------------------------------------------
Profit on ordinary activities before
taxation 705 677
Tax on profit on ordinary activities 6 (180) (155)
------------------
Profit for the financial year 525 522
Dividends 7 (188) (160)
------------------
Retained profit 337 362
==================
Earnings per share:
Before exceptional items & after
taxation 8(a) 43.6p 37.3p
After exceptional items & taxation 8(b) 41.2p 40.9p
IIMR "Headline" earnings 8(c) 47.9p 42.0p
Dividend per share 7 15.45p 12.5p
Dividend cover - before
exceptional items 8(d) 2.8 times 3.0 times
There were no recognised gains or losses (1994: nil) other than profit on ordinary activities after taxation. Reconciliation of Movements in Shareholders' Funds
Note Yr ended Yr ended
26 March 27 March
1995 1994
GBPm GBPm
Profit on ordinary activities after
taxation 525 522
Dividends 7 (188) (160)
Goodwill adjustment on acquisition of
American National Power 11 (38)
Purchase of own shares (453) -
Share issues - employee share schemes 10 5
------------------
Net reduction to shareholders' funds (95) 329
Shareholders' funds at 28 March 1994 2,643 2,314
------------------
Shareholders' funds at 26 March 1995 2,548 2,643
==================
NATIONAL POWER PLC
Balance Sheet
Note 26 March 27 March
1995 1994
GBPm GBPm
Tangible fixed assets 3,127 3,190
Fixed asset investments 210 146
------------------
Total fixed assets 3,337 3,336
------------------
Stocks 183 423
Debtors 594 497
Investments, cash and short term deposits 531 700
Creditors: amounts falling due within 1 year (1,084) (860)
----------------
Net current assets 224 760
----------------
Total assets less current liabilities 3,561 4,096
Creditors: amounts falling due after
more than 1 year (667) (1,036)
Provisions for liabilities and
charges 9 (344) (415)
----------------
Net assets employed 2,550 2,645
==================
Shareholders' funds 2,548 2,643
Minority interests 2 2
------------------
Capital employed 2,550 2,645
==================
Debt/equity ratio 10 9.0% 13.3%
Cash Flow Statement
Note Yr ended Yr ended
26 March 27 March
1995 1994
GBPm GBPm
Net cash inflow from operating
activities 12 1,246 857
Net cash outflow from returns on investment
and servicing of finance (200) (174)
Tax paid (101) (151)
Net cash outflow from investing
activities 13 (593) (526)
------------------
Net cash inflow before financing activities 352 6
Net cash (outflow)/inflow from
financing activities 15 (832) 444
------------------
(Decrease)/increase in cash and cash
equivalents 11 (480) 450
================== NATIONAL POWER PLC Notes to the accounts 1. Abridged accounts These abridged accounts do not constitute the Company's statutory accounts. The Auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together have completed their audit of the financial information contained herein and have confirmed that they expect to give an unqualified opinion Unqualified opinion An independent auditor's opinion that a company's financial statements comply with accepted accounting procedures. Antithesis of qualified opinion. unqualified opinion See clean opinion. . The statutory accounts for the year ended 26 March 1995 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement and will be delivered to the Registrar of Companies The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. following the Company's Annual General Meeting.
Yr ended Yr ended
26 March 27 March
1995 1994
2. Turnover GBPm GBPm
Sales of electricity through the pool 3,187 3,239
Direct sales to customers (a) 594 273
Miscellaneous income 172 129
------------------
Total turnover 3,953 3,641
==================
(a) Direct sales to customers are sales of electricity,
purchased from the trading pool, to large customers.
3. Operating costs and gross margin
Fuel purchased for power station generation 1,415 1,548
Gas purchased for resale 113 62
Purchases from the pool 468 217
Other direct costs including use of system 280 191
------------------
Total direct costs 2,276 2,018
---------------------------------------------------------------
Gross margin - total turnover less total
direct costs 1,677 1,623
---------------------------------------------------------------
Depreciation (a) 317 229
Staff costs 180 216
Other costs 411 489
Exceptional item - provision released - (45)
------------------
Total operating costs 3,184 2,907
==================
Operating profit - continuing operations 769 734
==================
Provisions credited in operating costs 1 8
==================
(a) Depreciation includes a charge of GBP31 million relating
to a permanent diminution in the value of a power station.
4. Net interest
Net interest includes an exceptional item of GBP30 million
which is the premium paid on the redemption of GBP350 million
debt issued to HM Government prior to flotation. The premium
is not a deductible expense for tax purposes.
5. Analysis of profit on ordinary activities before
taxation and exceptional item
United Kingdom business 780 703
International business - overseas contributions 8 -
- development costs net of recoveries (10) (13)
Net interest payable (43) (58)
------------------
Total profit on ordinary activities before
taxation and exceptional item 735 632
==================
6. Taxation
The effective tax rate for both years before exceptional
items is 24.5%. The tax charge is stated after taking
account of credits in respect of earlier periods totalling
GBP52 million (1994: GBP5 million) and timing differences
principally in respect of expenditure against provisions.
Yr ended Yr ended
26 March 27 March
1995 1994
7. Dividends GBPm GBPm
Interim dividend of 4.35p (1994: 3.75p)
per Ordinary Share 56 48
Proposed final dividend of 11.1p
(1994:8.75p) per Ordinary Share 132 112
------------------
Total dividends 15.45p (1994:12.5p) 188 160
==================
8. Earnings per share and dividend cover
(a) Earnings per share before exceptional item and after
taxation is based on the profit before exceptional item and
after taxation attributable to ordinary shareholders of
GBP555 million (1994: GBP477 million) divided by the weighted
average of 1,274,160,085 (1994: 1,277,633,258) ordinary
shares in issue for the year ended 26 March 1995. On a
fully diluted basis the earnings per share is 41.7p (1994:
36.1p).
(b) Earnings per share after exceptional item and taxation
is based on the profit on ordinary activities after taxation
of GBP525 million (1994: GBP522 million). On a fully diluted
basis the earnings per share is 39.5p (1994:39.5p).
(c) Earnings per share on the basis recommended by the
Institute of Investment Management and Research (IIMR)
includes all operating items as defined by FRS3 but excludes
loss on disposal of fixed assets of GBP24 million (1994:
loss GBP15 million), permanent diminution in fixed asset
values of GBP31 million (1994: nil) and the premium on the
redemption of the HMG Bond of GBP30 million. On a fully
diluted basis the earnings per share is 45.6p (1994: 40.5p).
The fully diluted earnings per share are provided as
additional information. In no case are they more than 5%
different from undiluted earnings.
(d) Dividend cover before the exceptional item is based on
the earnings per share, before the exceptional item and
after taxation, divided by the dividend per ordinary share.
The calculation of earnings per share uses the weighted
average number of shares in issue of 1,274,160,085,
(1994:1,277,633,258), which differs from the number of shares
in issue for the purposes of calculating the total dividend.
The proposed final dividend is based on the number of
shares in issue at 26 March 1995 of 1,186,175,408
(1994: 1,279,383,136).
P & L
27 March account/ Provisions 26 March
1994 transfers utilised 1995
9. Provisions for liabilities
and charges GBPm GBPm GBPm GBPm
Rationalisation and
restructuring 224 26 (68) 182
Liability and damage claims 116 (27) 5 94
Major plant repair costs 59 (3) (5) 51
Pensions 9 3 - 12
Others 7 (2) - 5
------------------------------------
Total provisions 415 (3) (68) 344
====================================
26 March 27 March
1995 1994
10. Net borrowings GBPm GBPm
12.035% Bonds issued to HM Government - (350)
10.625% Euro Sterling Bonds (200) (200)
6.25% Convertible Bonds (244) (244)
6.25% Euro Dollar Bonds (186) (197)
Finance leases / bank loans (20) (29)
------------------
Debt financing (650) (1,020)
Net cash and cash equivalents (note 11) 59 539
Other marketable securities 362 128
------------------
Net borrowings (229) (353)
==================
Capital employed 2,550 2,645
==================
Debt/equity ratio 9.0% 13.3%
==================
Yr ended Yr ended
26 March 27 March
1995 1994
11. Cash and cash equivalents GBPm GBPm
At beginning of period 539 89
(Decrease)/increase in cash and cash
equivalents (480) 450
------------------
At end of period 59 539
==================
12. Net cash inflow from operating activities
Operating profit 769 734
Non cash items
Provisions written back to operating costs (1) (8)
Exceptional item - provision release - (45)
Depreciation charged to operating costs 317 229
Other 31 32
Cash items
Provisions utilised/transfers (68) (84)
Movement in working capital 198 (1)
------------------
Net cash inflow from operating activities 1,246 857
==================
13. Net cash outflow from investing activities
UK investment in plant - environment 202 306
- other 76 130
Overseas investments - Hub project 64 --
- other 10 44
(Sale)/purchase of overseas subsidiary
undertakings (3) 103
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