2005/06 Half Year results including 2nd Quarter to 30 September 2005
10 November 2005
Highlights
Strategy successfully delivering strong organic growth from
continuing businesses
- Operating profit* of £326 million, up 40%
- Profit before tax* of £273 million, up 45%
- Earnings per share* of 12.83 pence, up 64%
- Capital investment of £529 million, with 72% for growth
Total group
- Earnings per share* of 20.50 pence, up 26%
- Dividend per share 5.20 pence for quarter & 10.40 pence for half
year, both up 5%
Corporate restructuring will deliver annualised cost savings of £60
million
Sale of PacifiCorp is proceeding on schedule
| Quarter 2 | Half Year |
|---|
| 2005/06 | 2004/05 | £ Million | 2005/06 | 2004/05 |
|---|---|---|---|---|
| Continuing businesses | ||||
| 1,073 | 950 | Revenue | 2,157 | 1,906 |
| 148 | 105 | Operation Profit, as adjusted* | 326 | 233 |
| 126 | 84 | Profit before tax, as adjusted* | 273 | 189 |
| 7.08 | 3.42 | Earnings per share, as adjusted* (pence) | 12.83 | 7.81 |
| 34 | 125 | Operating profit | 197 | 269 |
| (98) | 104 | (Loss)/profit before tax | 17 | 225 |
| 0.22 | 4.18 | Earnings per share (pence) | 4.72 | 9.18 |
| Group | ||||
| 11.70 | 8.75 | Earnings per share, as adjusted* (pence) | 20.50 | 16,.24 |
| 6.63 | 9.50 | Earnings per share (pence) | 12.53 | 17.60 |
Note: The group's half year results have been prepared in accordance with IFRS for the first time. Comparative figures for the previous year have also been restated on this basis. IAS 39 ("Financial Instruments: Recognition and Measurement") has been applied prospectively with effect from 1 April 2005 and as a result the statutory results for the half year are not directly comparable to the equivalent period last year largely due to the recognition of fair value losses before tax of £289 million relating to IAS 39 for continuing operations this year. As shown in the table above, the main focus of our results is on our continuing businesses, as PacifiCorp is now reported as a discontinued operation. Items marked * represent adjusted results, further details of which are given in the Operational Performance Continuing Businesses section, below. Reconciliations from the reported to the adjusted operating profit, profit before tax and earnings per share are shown in Note 13 to the Interim Report & Accounts.
Ian Russell, ScottishPower Chief Executive, said:
"Our continuing businesses have again performed strongly in the first half, delivering operating profit growth of 40%*. This reflects the success of our strategy of focusing on organic growth and improving operational performance. The corporate restructuring programme which will drive further efficiency improvements is being implemented and will deliver annualised cost savings of £60 million. The process of selling PacifiCorp is proceeding on schedule and upon completion this will enable us to return approximately £2.5 billion to shareholders. Overall, ScottishPower is well positioned and we are on track to deliver strong results for the full year."
