National Grid 2008 Annual Report Download - page 656

BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 15131
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: 129
Description: EXHIBIT 15.1
0/7325.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/325/7*
BOWNE INTEGRATED TYPESETTING SYSTEM
CRC: 15131
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: 129 Description: EXHIBIT 15.1
0/7325.00.00.00Y59930BNY
[E/O] EDGAR 2 *Y59930/325/7*
Table of Contents
Annual Report and Accounts 2007/08
137
8. Discontinued operations
Discontinued operations are businesses that have been sold, or which are held for sale. They include our former wireless
infrastructure operations in the UK and US, and the Basslink electricity interconnector in Australia, that were classified as
businesses held for sale during the year ended 31 March 2007. Businesses held for sale at 31 March 2008 comprise the
Ravenswood generation station in New York City (representing our merchant electricity generation operations), together with
KeySpan Communications and KeySpan Engineering Associates that were acquired as part of the KeySpan acquisition on 24
August 2007.
The wireless infrastructure operations in the UK and US were sold on 3 April 2007 and 15 August 2007 respectively, while the
Basslink electricity interconnector business was sold on 31 August 2007. The sale of the Ravenswood generation station was
agreed on 31 March 2008 for consideration of $2.9bn. Completion of the sale is dependent upon regulatory approval and is
expected during summer 2008.
Results of discontinued operations
9. Dividends
The following table shows the dividends paid to equity shareholders:
In addition, the Directors are proposing a final dividend for 2008 of 21.3p per share that will absorb approximately £531m of
shareholders’ equity. It will be paid on 20 August 2008 to shareholders who are on the register of members at 6 June 2008.
2008 2007 2006
£m £m £m
Revenue 201 383 493
O
p
eratin
g
costs
(
166
)
(
321
)
(
382
)
O
p
eratin
g
p
rofit before exce
p
tional items, remeasurements and stranded cost recoveries 35 117 131
Exce
p
tional items
(
i
)
–
(
55
)
(
20
)
Total o
p
eratin
g
p
rofit from discontinued o
p
erations 35 62 111
Net finance costs before remeasurement finance income – (2) (4)
Remeasurement finance income
(
ii
)
8 37
–
Profit before tax from discontinued o
p
erations 43 97 107
Taxation (7) (11) (45)
Profit after tax from discontinued o
p
erations 36 86 62
Gain on dis
p
osal of wireless o
p
erations 1,506
–
–
Gain on dis
p
osal of Basslink electricit
y
interconnector 80
–
–
Gain on dis
p
osal of
g
as distribution networks
–
–
2,636
Gain on dis
p
osal of discontinued o
p
erations before tax 1,586
–
2,636
Taxation
(
4
)
–
(
31
)
Gain on dis
p
osal of discontinued o
p
erations 1,582
–
2,605
Total
p
rofit for the
y
ear from discontinued o
p
erations
Before exceptional items, remeasurements and stranded cost recoveries 28 104 77
Exce
p
tional items, remeasurements and stranded cost recoveries 1,590
(
18
)
2,590
1,618 86 2,667
(i) The exceptional item for the year ended 31 March 2007 reflects an impairment of goodwill within the US wireless infrastructure operations. Exceptional items for the year ended 31 March
2006 related to a fine (£15m) incurred in respect of a breach of health and safety laws in 1999 and to restructuring costs (£5m).
(ii) Remeasurement finance income for the year ended 31 March 2008 comprised £8m of mark-to-market gains on financial instruments (2007: £13m) and for the year ended 31 March 2007
an additional £24m relating to the recognition of gains on the termination of a hedging arrangement.
2008 2007 2006
pence pence pence
(per ordinar
y
2008 (per ordinary 2007 (per ordinary 2006
share) £m share) £m share) £m
Ordinar
y
dividends
Interim dividend for the year ended 31 March 2008 11.7 300 – – – –
Final dividend for the
y
ear ended 31 March 2007 17.8 480
–
–
–
–
Interim dividend for the
y
ear ended 31 March 2007
–
–
10.9 297
–
–
Final dividend for the
y
ear ended 31 March 2006
–
–
15.9 433
–
–
Interim dividend for the year ended 31 March 2006 – – – – 10.2 276
Final dividend for the
y
ear ended 31 March 2005
–
–
–
–
15.2 469
29.5 780 26.8 730 25.4 745