H1 2015 Group Financial Review
EBITDA for H1 2015 up 18% at £120 million
- Adverse impact of LEC removal c.£30 million in H2 2015 and c.£60 million in 2016
Underlying earnings per share increased 8% to 10.2 pence
- Higher depreciation, reflecting biomass investments
Tax rate on underlying profits of 26%
- Expect tax on underlying profits for the full year to be a small credit, reflecting impact on deferred tax of corporation tax rate reductions proposed in the summer Budget
Capital investment: on track to complete biomass transformation in line with original cost guidance of £650 - £700 million (3 unit conversions, US supply chain investments and IED compliance)
- H1 2015 capital investment of £54 million
- Full year capital investment guidance unchanged at c.£150 million
Interim dividend of 5.1 pence per share, or £21 million (H1 2014: 4.7 pence per share,
or £19 million), in line with policy to distribute 50% of underlying earnings
Strong balance sheet
- Closing cash of £282 million and net debt of £40 million (net debt at 31 December 2014: £99 million)
