SSE increased its dividend in line with inflation as the energy company reported higher annual profit and stuck to its £7.5bn investment plan.
Adjusted operating profit rose 1% to £1.51bn and adjusted pretax profit increased 4% to £1.06bn in the year to the end of March from a year earlier. Reported operating profit soared 185% to £2.74bn boosted by exceptional gains on disposals.
The FTSE 100 group recommended a final dividend of 56p a share, taking the annual payout to 81p a share, up 1.2% in line with its policy of increasing the dividend at the same rate as the retail price index measure of inflation.
SSE said the financial impact of Covid-19 was £170m – at the lower end of its guidance. Its £7.5bn capital spending plan is on track to complete in 2025.
Alistair Phillips-Davies, SSE’s chief executive, said: “Financial performance has not been immune to the effects of coronavirus, but we have demonstrated the resilience of our business with strong underlying performance and our strategy remains firmly on course.
“We have grown adjusted operating profit, while the considerable increase in reported operating profit underlines the extent to which we have been able to realise value for shareholders through the success of our disposals programme.”
SSE said it planned to increase the dividend in line with retail prices for the next two years and that its assets would “create value for shareholders over the long term”.
