(Alliance News) - National Grid PLC on Thursday raised its guidance for underlying earnings per share, following an accounting change.
Shares in National Grid were up 2.7% to 1,040.00 pence each in London on Thursday morning.
The London-based electricity infrastructure and gas utility company said the reporting change will be reflected in its financial 2024 results, which will lead to an expected increase to underlying EPS of around 8p per share.
As a result, National Grid expects underlying earnings per share for financial 2024 to be line with its prior year. The company's financial year ended March 31.
In financial 2023, National Grid reported underlying EPS of 69.7p.
"In the 2023 spring budget, the UK government introduced 'full expensing' tax relief for qualifying capital expenditure to encourage greater levels of investment from businesses. This change became permanent in November 2023. To represent underlying profitability more accurately, and to align with UK peers, we will now report underlying earnings and underlying EPS excluding the impact of deferred tax in our UK Electricity Transmission and Distribution businesses," the company explained.
By Sophie Rose, Alliance News senior reporter
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National Grid (NG.)