National Grid 2008 Annual Report Download - page 646

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 50173
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: 119
Description: EXHIBIT 15.1
0/7315.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/315/7*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 50173
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: 119 Description: EXHIBIT 15.1
0/7315.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/315/7*
Table of Contents
Annual Report and Accounts 2007/08
127
1. Segmental analysis continued
(a) Revenue continued
Approximately 9% (2007: 9%; 2006: 9%) of revenue for the year ended 31 March 2008 amounting to approximately £1.0bn
(2007: £0.8bn; 2006: £0.9bn) derives from a single customer, the Centrica group. The majority of this revenue is in the Gas
Distribution UK segment with lesser amounts in the Transmission UK segment and in other activities.
In accordance with the Company’s accounting policy on revenue recognition, where revenue received or receivable exceeds
the maximum amount permitted by regulatory agreement and adjustments will be made to reflect the over-recovery, no liability
is recognised. Similarly, no asset is recognised where a regulatory agreement permits adjustments to be made to future prices
in respect of an under-recovery. In the UK, there was an under-recovery of £23m at 31 March 2008 (2007: £33m). In the US,
under-recoveries and other regulatory entitlements to future revenue (including stranded cost recoveries) amounted to £1,652m
at 31 March 2008 (2007: £1,930m).
(b) Operating profit
*Comparatives have been adjusted to present items on a basis consistent with the current year classification
The table above represents operating profit from continuing operations only, as disclosed in the consolidated income
statement, and excludes the results of discontinued operations. For additional disclosures relating to discontinued operations,
refer to note 8.
(c) Capital expenditure and depreciation
Capital expenditure comprises additions to property, plant and equipment and other non-current intan
g
ible assets amountin
g
to
£3,009m (2007: £2,343m; 2006: £2,093m) and £45m (2007: £32m; 2006: £15m) respectively.
Depreciation and amortisation includes expensed depreciation of property, plant and equipment and amortisation of other
intangible assets amounting to £940m (2007: £889m; 2006: £908m) and £54m (2007: £54m; 2006: £57m) respectively.
Before exceptional items, After exceptional items,
remeasurements and stranded remeasurements and stranded
2008 2007 2006 2008 2007 2006
£m £m £m £m £m £m
Business se
g
ments
–
continuin
g
o
p
erations
Transmission UK 1,021 946 844 1,013 936 843
Transmission US 128 108 127 122 107 127
Gas Distribution UK 595 409 483 574 412 432
Gas Distribution US 392 71 47 487 67 47
Electricity Distribution & Generation US* 330 364 317 696 859 757
Other activities 129 133 150 72 132 168
2,595 2,031 1,968 2,964 2,513 2,374
Geo
g
ra
p
hical se
g
ments
UK 1,752 1,491 1,478 1,667 1,482 1,423
US 843 540 490 1,297 1,031 930
Rest of the world
–
–
–
–
–
21
2,595 2,031 1,968 2,964 2,513 2,374
Capital expenditure Depreciation and amortisation
2008 2007 2006 2008 2007 2006
£m £m £m £m £m £m
Business segments – continuing operations
Transmission UK 1,600 1,235 849 372 352 377
Transmission US 111 108 91 40 41 45
Gas Distribution UK 514 490 444 181 170 161
Gas Distribution US 188 36 25 91 24 19
Electricit
y
Distribution & Generation US 257 218 219 146 127 126
Other activities 383 258 279 164 157 160
3,053 2,345 1,907 994 871 888
Discontinued o
p
erations 130 201
–
72 77
3,054 2,375 2,108 994 943 965
Geo
g
ra
p
hical se
g
ments
UK 2,493 2,007 1,697 709 739 771
US 560 365 340 285 196 194
Rest of the world 1371
–
8
–
3,054 2,375 2,108 994 943 965