SSE sticks to profits forecast after customer numbers dip

SSE has announced that its full-year profit outlook remains unchanged despite "short-term challenges" and a dip in customer numbers.
SSE will hold its annual general meeting in Perth today. Picture: Andrew MilliganSSE will hold its annual general meeting in Perth today. Picture: Andrew Milligan
SSE will hold its annual general meeting in Perth today. Picture: Andrew Milligan

The FTSE 100 group said its forecast for adjusted operating profit for 2019/20 has not been affected after recording a 1.2 per cent fall in customer accounts and "lower than forecast" renewable energy output in the first quarter.

This comes ahead of the Perth-based energy giant's annual general meeting in the city today.

Hide Ad
Hide Ad

SSE once again cited plans to separate its energy services arm, where executive chair Katie Bickerstaffe and interim chief financial officer Gordon Boyd took up their roles last month.

Bickerstaffe is tasked with separating the business from the SSE Group, either through its own listing or securing new ownership, by the second half of calendar year 2020.

The group also reiterated its intention to recommend a full-year dividend of 80 pence per share for 2019/20, in line with its five-year dividend plan set out in May last year.

Chief executive Alistair Phillips-Davies said: "The early months of our financial year have brought some short-term challenges and some encouraging longer-term developments, but the key months of our financial year lie ahead. I am confident we will make good progress in delivering against our strategic priorities, including the five- year dividend plan out to 2023.

"The fact the UK has become the first major economy to legislate for net zero emissions by 2050 is a key development in the fight against climate change and reinforces SSE's strategic focus on regulated electricity networks and renewable energy, and our commitment to creating value through the low carbon transition."

Donald Brown, head of private clients at Brewin Dolphin Edinburgh, said: “There isn’t a huge amount to take from today’s update from SSE – but that may come as a relief to shareholders, who have become used to bad news.

"That said, there was a further 1.2 per cent decline in customer accounts which continues an ongoing trend. The commitment to the full-year dividend, which had previously been outlined, can be taken as a positive and the general outlook for the business is unchanged.

"The future of SSE Energy Services continues to be the major question mark, with customer numbers still falling. However, the appointments of new senior staff should provide an indication of its direction shortly, whether as a listed company or under new ownership. ”

Related topics: