Shares in utility giant SSE powered ahead early yesterday after the Perth-headquartered group said it was on track to meet its main financial target for the year.
In a pre-close update to the market ahead of publishing its half-year results next month, the group said it expected to deliver an increase in the full-year dividend of at least the equivalent of RPI inflation.
In 2014/15, the company earned around a quarter of its full-year adjusted pre-tax profits in the first half, but that position has now improved.
SSE said it was likely that it had earned more than a third of its full-year profits in the first half of the current year.
Improving trends within two of the firm’s three main trading divisions had helped lift performance.
SSE said in the first half of 2014/15, operating profit in wholesale was exceptionally low and its energy supply business reported an operating loss.
The current year has seen wholesale benefit from high output of renewable energy while supply has turned in a “relatively good performance.
“We are satisfied with the start we have made to the financial year, and are pleased to have made good progress in both the investment programme and the operational performance in each of the businesses,” finance director Gregor Alexander said.
“The priority now is to make sure that the business performs well throughout the autumn and winter, focusing on meeting the needs of networks, retail and enterprise customers in particular, while achieving our key financial goals.”
Shares in SSE closed the trading session up 4.1% or 59p at 1,496p.