Strip out movements on derivative contracts and exceptional items, and adjusted pre-tax profits actually fell from £410m to £386m at energy giant Scottish & Southern. But this figure was still ahead of analysts' expectations, allaying doubts over the sustainability of the dividend and sending the shares up 6 per cent. In fact, management reiterated its dividend policy of an annual increase of 2 per cent above inflation and was keen to point out that the utility was one of only six companies in the FTSE 100 to deliver consecutive real payout growth since 1999.
Profits were limited in the half by a 16 per cent weather-related fall in renewable energy output and an annual reduction in household electricity consumption of 5 per cent. Higher wholesale gas prices also had an impact and now mean the group will increase consumer prices by 9.4 per cent from 1 December.