With fewer customers and falling energy usage, Scottish & Southern Energy grew pre-tax profit just 2 per cent in the year to £1.34bn – after adjusting for heavy writedowns in generating assets. That modest performance, which was in line with analysts' expectations, suggests few catalysts for a significant share price upside.
The retail unit's operating profit actually fell 19.7 per cent to £321.6m after the loss of 230,000 customers, as doorstep selling practices were abruptly halted following a court ruling. The purchase of Phoenix gas in Northern Ireland did go some way towards rectifying that, but customer numbers were still 100,000 down in the period, at 9.55m. A warmer winter also hurt with households gas and electricity usage down 20 per cent and 7 per cent, respectively.