- Profit from operations (excluding exceptional items) of £501 million (2004: £222 million)
- up 126% - EPS (excluding exceptional items) of 13.5p (2004: 8.6p) - up 57%
- EPS (including exceptional items) of 19.4p (2004: 7.5p) - up 159%
- Free cash flow of £285 million (2004: £104 million) - up 174%
- DPS of 4.5p - up 80%
- Dividend pay out ratio raised to 33% of EPS (subject to shareholder approval)
Operational highlights
- Strong performance from acquired assets
- US and UK continued market recovery
- Acquisition of 1,200 MW CCGT Saltend plant completed
Income statement
| Year ended 31 December 2005 |
Year ended 31 December 2004 |
|
|---|---|---|
| £m | £m | |
| Excluding exceptional items | ||
| Revenue - (including joint ventures and associates) | 2,936 | 1,267 |
| Profit from operations | ||
| - from subsidiaries | 303 | 109 |
| - from joint ventures and associates | 198 | 113 |
| Profit from operations | 501 | 222 |
| Interest | (202) | (77) |
| Profit before tax | 299 | 145 | Tax | (55) | (25) |
| Minority interests | (45) | (8) |
| Profit attributable to equity holders of the parent | 199 | 112 |
| Earnings per share (basic) | 13.5p | 8.6p |
| Including exceptional items | ||
| Profit attributable to equity holders of the parent | 285 | 98 |
| Earnings per share (basic) | 19.4p | 7.5p |
Balance sheet
| As at 31 December 2005 |
As at 31 December 2004 |
|
|---|---|---|
| £m | £m | |
| Net assets | 2,375 | 2,058 |
| Net debt | 2,979 | 2,745 |
| Gearing | 125% | 133% |
| Debt capitalisation | 56% | 57% |
Segmental results - excluding exceptional items
Subsidiaries |
Share of joint ventures and associates |
Total |
||||
| Year ended 31 Dec 2005 |
Year ended 31 Dec 2004 |
Year ended 31 Dec 2005 |
Year ended 31 Dec 2004 |
Year ended 31 Dec 2005 |
Year ended 31 Dec 2004 |
|
|---|---|---|---|---|---|---|
| £m | £m | £m | £m | £m | £m | |
| Revenue | ||||||
| North America | 523 | 188 | 171 | 72 | 694 | 260 |
| Europe | 990 | 308 | 397 | 212 | 1,387 | 520 |
| Middle East | 24 | 24 | 43 | 30 | 67 | 54 |
| Australia | 369 | 223 | 51 | 8 | 420 | 231 |
| Asia | 27 | 25 | 341 | 177 | 368 | 202 |
| 1,933 | 768 | 1,003 | 499 | 2,936 | 1,267 | |
| Profit/(loss) from operations | ||||||
| North America | 20 | (29) | 29 | 8 | 49 | (21) |
| Europe | 205 | 52 | 55 | 45 | 260 | 97 |
| Middle East | 12 | 13 | 12 | 7 | 24 | 20 |
| Australia | 119 | 96 | 6 | 2 | 125 | 98 |
| Asia | 6 | 9 | 96 | 51 | 102 | 60 |
| Segmental profit from operations | 362 | 141 | 198 | 113 | 560 | 254 |
| Corporate costs | (59) | (32) | - | - | (59) | (32) |
| Profit from operations (excluding exceptional items) | 303 | 109 | 198 | 113 | 501 | 222 |
| Exceptional items | 110 | 11 | - | - | 110 | 11 |
| Profit from operations | 413 | 120 | 198 | 113 | 611 | 233 |
The regional performance is discussed in more detail in the Regional reviews. Corporate costs and exceptional items are discussed in the Corporate section.
Dividend
The Board is proposing a dividend of 4.5p per share (2004: 2.5p), an increase of 80% year-on-year and representing a pay-out ratio of 33% of pre-exceptional EPS. We have increased our pay-out ratio earlier than planned (previously 30%), in light of our strong financial performance. Our intention to progressively move towards a dividend pay-out ratio of 40% in the medium-term remains unchanged.
Payment of this dividend, to shareholders registered on the Company share register on 26 May 2006, is due to be made on 23 June 2006 following approval at the 2006 AGM, which will be held on 17 May 2006.
Outlook
We expect 2006 to be a year of further growth. This is driven principally by continued recovery in two of our key merchant markets, namely the UK and the US, and our new build programme in the Middle East progressively reaching commercial operation. We will continue our disciplined approach to value enhancing growth opportunities in our core regions, alongside our commitment to increase our dividend pay-out over the medium-term.
