Scottish dividend rise
ELECTRICITY and gas supplier Scottish & Southern Energy has pledged to reward its 350,000 shareholders with an inflation busting dividend hike despite a fall in first-half profit.
The FTSE 100 firm, which last month raised gas prices by 18 per cent and electricity prices by 11 per cent, said it expected to increase its full-year dividend by at least 2 per cent more than retail price inflation.
SSE, which changes its name to SEE today, made the move despite warning that first-half profits would be “significantly lower” than for the same period in both 2010 and 2009. However it said full year forecasts were still on track.
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A spokesperson blamed rising wholesale prices and a lag in passing these on to its customers for the fall. It also pointed to unusually hot weather in April for cutting customer demand for central heating.
I am pleased with the significant progress of our investment programme, the assets from which will help to sustain dividend growth
Chief executive Ian Marchant said: “I am pleased with the significant progress of our investment programme, the assets from which will help to sustain dividend growth.”
It will spend £1.7billion this year mainly on wind farm projects. The shares fell 11p to 1295p.