Report pick

March 2017
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National Grid

London, United Kingdom

National Grid


Report Facts

Company name: National Grid plc
Fiscal year end: March 31, 2016
Report title: Annual Report and Accounts
Chairman: Sir Peter Gershon
Chief executive: John Pettigrew
Report length: 208 pages
Auditors: PricewaterhouseCoopers LLP
Website: investors.nationalgrid.com
Email: investor.relations@nationalgrid.com
Design and production: Addison Group

Report Rating

3.5/5

(To qualify for Report pick, the minimum rating required is ★★★(★). Rating scale below)

Profile

We are one of the world’s largest investor- owned utilities focused on transmission and distribution activities in electricity and gas in both the UK and the US... We are organised into four operating segments...

(Report excerpts. Italics are own company’s words)

Key Figures

Revenue: £ 15,115 million
Operating profit: £ 4,096 million
Profit (before tax): £ 3,142 million
Earnings per share (basic): 69.0 pence
Dividend (approved): 43.34 pence
Return on equity (UK regulated): 13.3%

(Source: wording and figures sourced from the annual report)

Competitors

  • SSE (Scottish and Southern Electric)
  • Centrica
  • United Utilities
  • EDF
  • Edison
  • Iberdrola
  • RWE
  • E.On 
  • ...
 

Triple A

  • What we do makes up a well-illustrated and intelligible introduction to the business –and business model.
  • Outstanding report on governance matters: e.g. compliance with the UK Code; board composition, focus areas and evaluation; committees’ role; directors’ remuneration.
 

Double A

  • Vision, strategy and operating environment made clear.
  • Worthwhile range of KPIs that go beyond financial indicators.
  • Good review of Principal operations, mixed with a few case studies.
  • Fair description of risk factors, management, and examples of mitigations.
  • Detailed auditors’ report.
  • Definitions and glossary of terms.
 

Simple A

  • Design is OK yet a bit too much in pedestrian style made in London.
  • Financial review not sufficiently developed, even though comments next to statements supplement. Financial KPIs not up to other ones.
  • Share(holder) information not up to best practice.
 

B Sides

  • Key highlights overlook major indicators.
  • Deficit in historical figures and ratios.
  • So-called interactive version is a rather basic PDF.
 

How does the company report in key areas? What are the main report pluses and minuses? The Report Scan gives an overview of strengths and weaknesses, and scores each item.
Contact e.com@reportwatch.net

 

Selected Page

(National Grid Annual Report 2015: p 11-12)
National Grid Annual Report 2015: p 11-12


Rating Scale
5
First-Rate
4.5
Excellent
4
Very good
3.5
Sound
3
Average
2.5
Uneven
2
Common
1.5
Substandard
1
Poor
0.5
Uncompetitive
The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.