Profits hit



“”"“Pre-tax profit to March fell 31 per cent to £1.8bn. Earnings hit by a 7 month dispute in Massachusetts, resolved in January, to add restructuring programmes in US and UK.
Underlying basis, which strips out exceptional costs and other factors such as the costs of dealing with major storms, pre-tax profit for the 12 months that ended March 31 was down 3 per cent to £2.5bn, which was slightly ahead of analysts’ expectations. The FTSE 100 group’s shares fell 0.4 per cent in early Lonon trading.”""

Such tosch - storms are a regular occurance and are in no way an exceptional cost.

Games – heading backwards this one


Games I know you like to run down NG, fair enough I think we would all like another buying opportunity around 780p, but I read into the results a different story. The biggest threat to NG is not a shallow business performance decline operations was maybe 4% off, but on positioning its defence against the loony left ideaology of a renationalisation grab at below market value.

Actually I think the chance is too remote of a Corbyn government, but the fear is again being factored in to all sorts of share prices today

To renationalise all the core utilities would be so cor blimey … NG, SSE, CNA, Severn Trent, UU, Pennon … all the privately or foreign held ones like Thames Water, NPower, EDF …

Add on the railways, RMG, BT, etc why not

Even on just a fundamental raw asset basis this would cost hundreds and hundreds of billions, in cash … no-one is going to exchange it for paper, govt bonds would not be worth printing after a raid like this … so the McDonnell plan fails completely at this point, even the unworldly children they are appealing to would see the flaws, apart from the extremely reckless champagne marxist thinkwits like Blakeley who behave like, since they (pretend) they have nothing to lose, destroying value would be a good thing

I do like greedy bosses and ripoff monopolists being frightened but only so far, thereafter NG and others need a defence. They probably have all this is hand, lots of clever plans

Part of the NG defence is to sink not just debt but equity into raising its capital asset value. That was the headline. Entering the political debate too, so far just words but if I was a utility or one of their major investors I would be directing my party funding accordingly. And then how about stepping away from UK jurisdiction if not the whole company then parts which can be ring fenced from a grab … put McDonnell plans at the risk of tangling with international law, an isolationist UK could not face up to the EU or the USA for risk of being bankrupted by them … we would be set upon like Venezuela


I too doubt that Corbyn could secure a majority in the House. That means that if he were to become PM that he would need a coaltion partner, most likely the SNP. Does anyone know what the SNP position is on renationalisation?


Frog in a tree


Marktime, Not knocking it, it’s just that it’s far too convenient to use the weather as an exceptional.
I also don’t consider posting pretax profit down 31% to GBP1.84 billion from GBP2.66 billion, as just a shallow performance.

I’ve no clue if Corbyn would get his way, but I wouldn’t rule the nutters out of trying. The scary part about it now is that the Tory Party, thanks to May and cohorts, have all but destroyed their own party, so unless there is another alternative then the nutjobs in the Labour party will get in.
It seems just the idea of this alone could drag down the utilities for another two years +.

No – I don’t like to knock it, I bought it at 7XX thinking it was undervalued, but having exited at close to 84X, I’m not so sure, especially after these results.



Well it has been a pretty b…dy day all round, NG one of the few blue chip defensive stocks not getting slaughtered, presumably that is because the ex-div is just a week away. And then a plunge …?

Unless by then we have a new PM with a restored government majority seeing off those renationalisation fears, Brexit done and dusted, trade wars all settled …

Time to go for a long slow walk in the sunshine


This was just the starter. Plenty of headwinds to come. Euro election meltdown of our 2 main parties. £ to sink even more. Trump invades Iran. New PM. General Election.


A bit of a bounce to end the week but for sure more turbulence to come.