SSE preps for 'transition' year
UK utility expects 'challenges' to continue during 2018-19
SSE expects the coming 2018-19 financial year to be “one of transition” as plans move forward to merge its UK retail business with Innogy's to form a new independent supplier.
The company said there is also uncertainty ahead over whether or not a legislation will be enacted to cap domestic gas and electricity tariffs.
“Despite these uncertainties and their potential impact on adjusted earnings per share, SSE continues to target an annual increase in the full-year dividend for 2018-19 that is at least equal to inflation,” SSE said.
Work on the retail merger with Innogy's Npower unit has been progressing since the companies formally notified the UK Competitions and Markets Authority in February, it added.
“SSE will shortly complete the transfer of the GB energy supply and services businesses that are expected to be the subject of the planned demerger and subsequent merger with Npower to a wholly-owned subsidiary named SSE Energy Services Group,” SSE said.
A total of 8800 employees will be transferred to the new retail group.
SSE finance director Gregor Alexander said the current 2017-18 financial year had “involved significant challenges”, which are expected to continue in the coming year.
“The challenges are not expected to relent in 2018-19, and it will be a year of major transition and change for SSE,” he said.
“Throughout the year, we will retain our strong operational and investment focus, while preparing the businesses in the SSE group for the important developments that lie ahead.”
SSE will publish its results for the financial year ended 31 March 2018 on 25 May.