National Grid 2014 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2014 National Grid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 196

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196

8. Dividends
Dividends represents the return of profits to shareholders. Dividends are paid as an amount per ordinary share held. We retain part
ofthe profits generated in the year to meet future growth plans and pay out the remainder in accordance with our dividend policy.
Interim dividends are recognised when they become payable to the Company’s shareholders. Final dividends are recognised when they
are approved by shareholders.
The following table shows the actual dividends paid to equity shareholders:
2014 2013 2012
Pence
per share
Total
£m
Settled
via scrip
£m
Pence
per share
Total
£m
Settled
via scrip
£m
Pence
per share
Total
£m
Settled
via scrip
£m
Interim – year ended 31 March 2014 14.49 539 –––––––
Final – year ended 31 March 2013 26.36 964 444 – – – – – –
Interim – year ended 31 March 2013 – – – 14.49 527 187 – – –
Final – year ended 31 March 2012 –––25.35 906 436 – – –
Interim – year ended 31 March 2012 ––––––13.93 497 34
Final – year ended 31 March 2011 ––––––23.47 822 279
40.85 1,503 444 39.84 1,433 623 37. 4 0 1,319 313
The Directors are proposing a final dividend for the year ended 31 March 2014 of 27.54p per share that will absorb approximately
£1,028m of shareholders’ equity (assuming all amounts are settled in cash). It will be paid on 20 August 2014 to shareholders who are
onthe register of members at 6 June 2014 and a scrip dividend will be offered as an alternative, subject to shareholders’ approval at
theAGM.
Unaudited commentary on dividends
Following the announcement of our new dividend policy in
March2013, we remain confident that our business is able
tosupport adividend rising at least in line with inflation for the
foreseeable future, while continuing to invest as required in
ourregulated asset bases. The dividend cover chart opposite
supports our decision.
With the exception of the 2013/14 interim dividend paid in
Januarythis year, a scrip option has been offered for all interim
and final dividends in the last three years. The scrip take-up
wasas follows: 2012/13 final: 46%; 2012/13 interim: 35%; and
2011/12 final: 48%.
1.2
1.5
1.2
1.4 1.3
1.5
1.3
1.6
1.3 1.3
2010 2011 2012 2013 2014
Adjusted earnings Earnings
Dividend cover
Times
Notes to the consolidated
financial statements continued
This unaudited commentary does not form part of the financial statements.
108 National Grid Annual Report and Accounts 2013/14