Cost Savings etc
National Grid Group PLC
22 April 2002
National Grid Announces Cost Savings, Board Change and Final Dividend
Further to today's joint announcement by National Grid Group plc ('National
Grid') and Lattice Group plc ('Lattice') that the Boards of both companies have
unanimously agreed the terms of a recommended merger of equals to form National
Grid Transco, National Grid announces:
UK Cost Savings
At its preliminary results in May 2001, National Grid announced that it would
aim to reduce controllable costs in its UK Transmission Owner business by 20% in
real terms over the term of its price review which ends in March 2006, modestly
outperforming the targets set by Ofgem.
Following an extensive review of the UK business processes, National Grid is now
able to increase this target to 30% delivering a further £80 million of cost
savings over the current price review period.
Steve Holliday, Group Director Europe said, 'This is further proof of our
ability to continue to cut costs after the excellent record over the last ten
years. I look forward to working with Lattice to exchange best-practice
abilities in this area.'
Board Change
The Board announces Stephen Box's intention to retire, through reasons of ill
health, as a Director of National Grid on completion of the merger between
National Grid and Lattice.
James Ross said, 'I would like to thank Stephen on behalf of all at National
Grid for his enormous contribution to the Group's success. We will be sad to see
him leave and we wish him all good fortune on his retirement.'
Final Dividend
The Board is recommending a final dividend of 9.58 pence per share to be paid on
15 August 2002 to shareholders on the register on 7 June 2002. This brings the
total dividend for the year to 16.04 pence per share in line with our target to
increase dividends by 5 per cent real in each year to March 2006.
Cautionary statement
This announcement contains certain statements that are neither reported
financial results nor other historic information. These statements are 'forward
looking statements' within the meaning of the safe-harbour provisions of the
U.S. federal securities laws. Because these forward-looking statements are
subject to risks and uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many of these risks and
uncertainties relate to factors that are beyond the companies' ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behaviour of other market participants and the actions of
governmental regulators. Other factors that could cause actual results to differ
materially from those described in this announcement include: the ability to
integrate Lattice successfully within the National Grid Group or to realise
synergies from such integration or the failure to retain key management and
other risk factors detailed in National Grid's reports filed with the SEC or in
material furnished to the SEC by National Grid or Lattice. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this announcement. The companies do not undertake any
obligation to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of this announcement.
ENQUIRIES:
National Grid:
Investors
Marcy Reed
+44 (0)20 7312 5779
+44 (0)7768 490807(m)
Terry McCormick
+44 (0)20 7312 5785
+44 (0)7768 045139(m)
Louise Clamp
+44 (0)20 7312 5783
+44 (0)7768 555641(m)
Media
Clive Hawkins
+44 (0)20 7312 5757
+44 (0)7836 357173(m)
Citigate Dewe Rogerson:
+44 (0)20 7638 9571
Anthony Carlisle
+44 (0)7973 611888(m)
This information is provided by RNS
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