National Grid 2008 Annual Report Download - page 552

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 27456
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 35
Description: EXHIBIT 15.1
0/10231.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/231/10*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 27456
Name: NATIONAL GRID
Date: 17-JUN-2008 03:10:51.35Operator: BNY99999TPhone: [phone]Site: BOWNE OF NEW YORK
Y59930.SUB, DocName: EX-15.1, Doc: 16, Page: 35 Description: EXHIBIT 15.1
0/10231.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/231/10*
Table of Contents
Annual Report and Accounts 2007/08
43
This followed the return of £2.0 billion to shareholders in
2005/06 through a B share scheme, following the successful
completions of the sales of four regional gas distribution
networks.
We measure our overall performance through dividend growth and
through total shareholder return, being the increase in our share price
over the course of the financial year, assuming dividends are
reinvested.
Our target until 31 March 2008 was to increase dividends by
7% each year. Following an increase of 15% for 2007/08,
our target until 31 March 2012 is to increase dividends by
8% each year.
Over the past five years, dividends have grown by a
cumulative 92% and cumulative total shareholder return
between 1 April 2003 and 31 March 2008 has been 117%.
Shareholder
returns
We aim to increase our dividend each year to
ensure shareholders receive an appropriate level
of return on their investment in us. We also
endeavour to communicate with investors so that
as much as possible of the value that we create is
reflected in our share price to the benefit of
shareholders.
Dividends in respect of the financial year
The proposed total ordinary dividend for 2007/08 amounts to
£831 million or 33.0 pence per ordinary share. This
represents an increase of 15% over the previous year’s
ordinary dividend per share of 28.7 pence. The above
amounts exclude the return of £1,516 million and
£169 million to shareholders in 2007/08 and 2006/07
respectively through a share repurchase programme and the
return of £2 billion to shareholders in 2005/06 through the B
share scheme.
The total ordinary dividend per share was covered 1.5 times
by adjusted earnings from continuing operations per ordinary
share (2006/07 covered 1.3 times, 2005/06 covered 1.3
times) and covered 1.8 times by earnings per ordinary share
from continuing operations (2006/07 covered 1.7 times,
2005/06 covered 1.6 times).
The table above shows the ordinary dividends paid or
payable by National Grid for the past five financial years.
These dividends do not include any associated UK tax credit
in respect of such dividends.
Dividends expressed in US dollars per American Depositary
Share (ADS) in the table above reflect the amounts paid or
payable to ADS holders, rounded to two decimal places.
In accordance with IFRS, the final dividend proposed in
respect of each financial year is reported in the financial
statements for the subsequent year. As a consequence the
final dividend proposed to shareholders for 2007/08 of 21.3
pence per share, amounting to approximately £531 million,
will be reported in the financial statements for the year
ending 31 March 2009.
2008 2007 2006 2005 2004
Dividends pence pence pence pence pence
Interim 11.7 10.9 10.2 8.5 7.91
Final 21.3 17.8 15.9 15.2 11.87
Total 33.0 28.7 26.1 23.7 19.78
Dividends per ADS $ $ $ $ $
Interim 1.21 1.03 0.88 0.79 0.67
Final 2.05 1.76 1.51 1.38 1.05
Total 3.26 2.79 2.39 2.17 1.72