REG - SSE Plc - Preliminary Results
28/05/2026 07:00
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RNS Number : 9577F SSE PLC 28 May 2026
SSE plc: Preliminary Results
28 May 2026
Highlights
· Record year delivering £3.6bn capital investment, as
construction programme gains momentum
· Financial results towards the upper end of guidance, reflecting
strong operational performance
· Resilient business mix means no immediate impact from macro
volatility on performance outlook
· Delivery of fully-funded £33bn investment plan to 2030 well
under way
· Earnings targets of between 168 - 193 pence for 2026/27 (adjusted
for equity issuance) and between 225 - 250 pence for 2029/30 remain unchanged
· Recommend a final dividend of 47.3 pence, resulting in a full
year dividend of 68.7 pence, a 7% increase on the prior year, reflecting the
strategic progress made
Martin Pibworth, Chief Executive, said:
"This year has demonstrated the strength and resilience of SSE's integrated
model. We met all our financial and operational targets and delivery of our
fully-funded £33bn investment plan to 2030 - focusing on Networks, Renewables
and Flexibility - is well under way. That investment is central to long‑term
value creation. It is reducing the UK's exposure to volatile global energy
markets and providing more stable, predictable returns through the energy
transition, while supporting economic growth and cutting bills for consumers.
"By operating our business efficiently and optimally, while accelerating
electrification and building energy infrastructure to unlock homegrown
renewables, we are strengthening energy security and lowering system costs
over time. With record levels of capital investment in line with our plan and
strong momentum across the Group, we are well placed to deliver sustainable
growth and value creation for our shareholders while helping to build a more
affordable and secure energy system for the UK."
Financial Summary Adjusted Reported
Mar 2026 Mar 2025(1) % Mar 2026 Mar 2025 %
Operating profit (£m) 2,237 2,419 (8)% 1,889 1,962 (4)%
Profit before tax (£m) 2,025 2,145 (6)% 1,837 1,851 (1)%
Earnings per share (p) 153.5 161.3 (5)% 105.5 108.2 (2)%
Investment & capital expenditure (£m) 3,586 2,910 +23% 4,781 3,837 +25%
Net Debt and Hybrid Capital (£bn)(2) 10.1 10.1 - 8.6 9.5 (9)%
(1) Comparative financial information has been restated, please see note 2.3
to the Summary Financial Statements
(2) Reported net debt excludes equity accounted hybrid capital, see
Alternative Performance Measures section
Financial performance
· Adjusted Earnings Per Share of 153.5p, towards the upper end of
guidance and reflecting continued strong operational performance during a
period of macro-economic uncertainty.
· Regulated Networks contributed around 40% of adjusted operating
profits, including:
§ Increasing investment and associated allowed revenues in SSEN Transmission,
with adjusted operating profit around 75% higher than prior year.
§ Distribution operating profits around 54% lower than prior year as expected
given the non-recurring inflation adjustment in the prior year.
· Capacity additions delivered by SSE Renewables were partially
offset by less favourable weather conditions throughout the course of the year
combined with lower hedged prices as expected, with adjusted operating profits
around 4% higher than the prior year.
· Operating profits across the Flexibility businesses were lower as
expected, as market conditions, outages and lower volumes meant that adjusted
operating profits were around 15% down on prior year.
· Reported operating profit of £1,889m reflects a net £(157.7)m
re-measurement charge, £(84.7)m group restructuring costs and £(77.9)m net
asset impairments.
· Adjusted taxation rate decreased to 9.6%, reflecting tax relief
on increasing investment programme.
· Adjusted capital investment increased by over 20% to £3.6bn,
predominantly in SSEN Transmission.
· Adjusted net debt and hybrid capital at £10.1bn, in line with
expectations given increasing investment, with 3.3x net debt / EBITDA
· Recommend a final dividend of 47.3 pence, taking full year
dividend to 68.7 pence or 7% increase on prior year.
Strategic delivery
Networks
· Construction under way on five of the 11 major Transmission
projects, representing around one third of transmission investment plan spend.
· Around 75% of major transmission consents have now been received,
with remainder in progress.
· Transmission supply chain fully secured and delivering on
projects under construction, as employee base continues to grow with >20%
increase over the year.
· Distribution RIIO-ED3 business plan under development, due for
submission in December 2026, setting the foundation for decades of expected
growth.
Renewables
· Construction progressing at Dogger Bank with turbine installation
stage at Phase A completed in February 2026, and strong installation progress
on Phase B with 20 turbines installed to date.
· Success in UK Allocation Round 7 for 1.4GW Berwick Bank Phase B
project, with the remaining 2.7GW of capacity expected to be eligible for the
accelerated Allocation Round 8 auction later this calendar year.
· 150MW Ferrybridge Battery Energy Storage System entered full
operation in March 2026.
Flexibility
· Final investment decision taken at the 170MW Platin Power Station
in Ireland, underpinned by an attractive capacity market contract.
Financial outlook
· SSE's increasing exposure to regulated, index-linked earnings
provides embedded financial resilience in periods of significant
macro-economic, political or regulatory uncertainty.
· Accordingly, the Group reiterates adjusted EPS expectations for
both 2026/27 of between 168 - 193 pence (adjusted for equity issuance and
increased number of shares) and 2029/30 of between 225 - 250 pence.
· Full year 2026/27 capex is expected to significantly increase to
over £5bn, with net debt continuing to be comfortably within the Group's
recently reaffirmed strong investment grade credit ratings.
Key Performance Indicators
Financial Performance Adjusted Reported
Mar 2026 Mar 2025(1) Mar 2026 Mar 2025(1)
EBITDA £m 3,207.9 3,349.3 2,768.2 2,738.3
Operating profit £m 2,236.6 2,419.2 1,888.9 1,962.2
Profit before tax £m 2,024.8 2,144.5 1,837.3 1,850.9
Earnings per share (EPS) pence 153.5 161.3 105.5 108.2
Full year dividend per share (DPS) pence 68.7 64.2 68.7 64.2
Investment and capital expenditure £m 3,585.6 2,910.4 4,780.7 3,837.0
Net debt and hybrid capital £bn 10.1 10.1 8.6 9.5
SSEN Transmission RAV - £bn (100% basis) 9.0 7.2
SSEN Distribution RAV - £bn 6.6 5.7
SSE Total Electricity Networks RAV - £bn (100% basis) 15.6 12.9
1 Comparative financial information has been restated, please see note 2.3 to
the Summary Financial Statements
Performance against 2030 Goals Mar 2026 Mar 2025
Cut carbon intensity by 80%
- Scope 1 GHG intensity (gCO2e/kWh) 194 218
Increase renewable energy output fivefold
- Renewable generation output (TWh)(1) 14.5 13.3
Enable low-carbon generation and demand
- Renewables connected in SSEN Transmission network area (GW)(2) 10.8 10.6
Champion a fair and just energy transition
- Contribution to GDP UK and Ireland (£bn / €bn)(3) 9.66/1.36 7.88/0.95
- Jobs supported in UK and Ireland(3) 83,360/4,990 62,000/5,190
1 Includes pumped storage, battery energy storage systems, biomass and
constrained-off wind in GB.
2 Prior period comparators restated to reflect data refinement. Transmission
and Distribution connected capacity within the SSEN Transmission network area,
includes pumped storage and battery storage.
3 Direct, indirect and induced Gross Value Added and jobs supported, from PwC
analysis
Safety Performance Mar 2026 Mar 2025
Total Recordable Injury Rate per 100k hours (SSE & contract partners) 0.17 0.16
Results presentation
SSE will present these full year results on Thursday 28 May 2026 at 09:00am UK
time. The presentation will be available to replay. You can join the webcast
by visiting sse.com and following the links on the homepage or investor pages;
or directly. Participants can register for a pin code and conference call
number for an accompanying teleconference. News releases and announcements are
made available on sse.com/investors and you can register for Regulatory News
Service alerts at sse.com/investors/regulatory-news/regulatory-news-alerts.
Investor Timetable
2026 Annual Report and Sustainability Report published on sse.com 12 June 2026
AGM and Q1 Trading Statement 16 July 2026
Final ex-dividend date 23 July 2026
Record date 24 July 2026
Scrip reference pricing days 23 - 29 July 2026
Scrip reference price confirmed and released via RNS 30 July 2026
Final date for receipt of scrip elections 20 August 2026
Final dividend payment date 17 September 2026
Trading Update Around 30 September 2026
Interim results for the six months ended 30 September 2026 18 November 2026
Contacts
Investors SSE Investor Relations ir@sse.com (mailto:ir@sse.com) Michael Livingston +44 (0)345 0760 530
Media SSE Media media@sse.com (mailto:media@sse.com) Ross Easton +44 (0)7425 797 706
MHP James McFarlane +44 (0)7854 142 665
Group Financial Review
Financial performance for the year ended 31 March 2026
In order to present the financial results and performance of the Group in a
consistent and meaningful way, we apply a number of adjusted accounting
measures throughout this financial report. The definitions we use for adjusted
measures are explained in the Alternative Performance Measures section.
Key Financial Metrics (£m) Adjusted Reported
Mar 2026 Mar 2025(1) Mar 2026 Mar 2025(1)
Networks operating profit
- SSEN Transmission 562.6 322.5 750.1 430.0
- SSEN Distribution 335.3 736.0 296.9 736.0
897.9 1,058.5 1,047.0 1,166.0
Renewables operating profit
- SSE Renewables 1,076.4 1,038.8 725.3 617.6
1,076.4 1,038.8 725.3 617.6
Flexibility operating profit
- SSE Thermal(1) 195.4 211.4 243.0 195.3
- Energy Customer Solutions(1) 136.9 192.1 136.2 189.2
- SSE Energy Markets 43.2 30.0 (145.8) (42.9)
375.5 433.5 233.4 341.6
- Corporate unallocated (113.2) (111.6) (116.8) (163.0)
Total operating profit 2,236.6 2,419.2 1,888.9 1,962.2
Net finance costs (211.8) (274.7) (51.6) (111.3)
Profit before tax 2,024.8 2,144.5 1,837.3 1,850.9
Tax charge (193.4) (297.9) (425.7) (518.0)
Effective tax rate (%) 9.6 13.9 24.3 29.4
Profit after tax 1,831.4 1,846.6 1,411.6 1,332.9
Less: hybrid equity coupon payments (72.9) (73.7) (72.9) (73.7)
Less: profits attributable to non-controlling interests - - (130.0) (69.8)
Profit after tax attributable to ordinary shareholders 1,758.5 1,772.9 1,208.7 1,189.4
Earnings Per Share (pence) 153.5 161.3 105.5 108.2
Weighted avg. number of shares for EPS (million) 1,145.4 1,099.2 1,145.4 1,099.2
Shares in issue at 31 March (million)(2) 1,212.2 1,106.3 1,212.2 1,106.3
1 Comparative financial information has been restated, please see note 2.3 to
the Summary Financial Statements
2 Excludes Treasury shares of 3.3m in March 2026 and 4.9m in March 2025
Segmental EBITDA results are included in note 6 to the Summary Financial
Statements. For detailed Business Unit financial performance commentary,
please refer to the Business Operating Review.
Group operating profit
The Group delivered strong operating performance over the course of the year.
This included an increased profit contribution from SSEN Transmission which
grew by around 75% on the prior year reflecting the strong growth in
investment across the transmission network. Elsewhere within Networks,
profitability in SSEN Distribution was significantly lower as expected given
the previous year included a large non-recurring inflation adjustment to
revenues.
For Renewables, profitability increased by around 4% reflecting increased
output from new capacity partially offset by mixed weather conditions and
lower hedged prices.
Across Flexibility, SSE Thermal saw modestly lower profits than prior year
which reflected market conditions and outage programmes across the fleet. And
Energy Customer Solutions profits decreased, reflecting both lower wind
related revenues combined with lower volumes sold.
Reported operating profit, in addition to the movements above, includes both
the net re-measurement on forward energy derivatives which are unrelated to
underlying operating performance, as well as items which are excluded from
adjusted results on the basis they are materially non-recurring,
uncontrollable or exceptional. Reported operating profit decreased by 4%
compared to the prior year, reflecting a lower net asset impairment charge
partially offset by a higher net-remeasurement charge on forward energy
derivatives and group restructuring charges. These movements include an
increase in profitability of SSEN Transmission, which is fully consolidated
within reported metrics.
Net finance costs
Our adjusted net finance costs - which exclude coupons on hybrid bonds
classified as equity - were lower this year. The year-on-year increase in the
cost of debt, as lower cost maturing debt has been replaced by more expensive
newly issued debt, has been more than offset by an increase in capitalised
interest resulting from increased capital expenditure activity in the year.
Reported net finance costs, which excludes our share of interest in Joint
Ventures and Associates, were £(51.6)m compared to £(111.3)m in the previous
period reflecting the increased capitalisation as noted.
Taxation
SSE is one of the UK's biggest taxpayers, and in the Total Tax Contribution
survey published in November 2025 was ranked 16th out of the 100 Group of
Companies in 2025 in terms of taxes borne (those which represent a cost to the
company, and which are reflected in its financial results).
We consider being a responsible taxpayer to be a core element of our social
contract with the societies in which we operate and we seek to pay the right
amount of tax, in the right place, at the right time. While we have an
obligation to shareholders, customers and other stakeholders to efficiently
manage our total tax liability, we do not seek to use the tax system in a way
it is not meant to operate or use tax havens to reduce tax liabilities.
SSE was the first FTSE 100 company to be Fair Tax Mark accredited and we have
now been accredited for 11 years.
In December 2025, we published our "Talking Tax 2025: fair tax for a clean
energy transition" report. We did this because building trust with
stakeholders on issues relating to tax is important to the long-term
sustainability of the business. We won PwC's Building Public Trust Award for
Tax Reporting in the FTSE 350 for the fourth consecutive year in November 2025
for the quality of our tax reporting.
In the year, SSE paid £424.9m of profit taxes, property taxes, environmental
taxes and employment taxes in the UK, compared with £592.1m in the previous
year. The decrease in total taxes paid was primarily due to less corporation
tax being paid on UK profits. This was because of higher capital allowances on
the Group's record level of capital expenditure. In addition, less Electricity
Generator Levy was paid due to lower electricity generation prices.
As with other key financial indicators, our focus is on adjusted profit before
tax and, in line with that, we believe that the adjusted current tax charge
on that profit is the tax measure that best reflects underlying performance.
SSE's adjusted current tax rate, based on adjusted profit before tax, was
9.6%, compared with 13.9% in 2024/25 on the same basis. The decrease in rate
is primarily due to higher UK capital allowances under full expensing on the
Group's capital investment programme.
Profit after tax and Earnings Per Share
Adjusted profit after tax was (0.8)% lower relative to the prior year,
reflecting the movements in adjusted operating profit, partly offset by the
lower adjusted current tax rate and lower adjusted net finance costs.
Reported profit after tax reflects the movements in reported operating profit
and net finance costs outlined above in addition to a reported current tax
rate of 24.3%. The higher reported current tax rate reflects an increase in
deferred tax arising as a result of differences in accounting and tax bases
that give rise to potential future accounting credits or charges. Within the
reported tax charge, deferred tax increased by 15% on prior year, mainly due
to the increase in our capital investment programme.
Reflecting the movements above, and the increased number of shares following
the November 2025 equity issuance, adjusted Earnings Per Share was (5)% lower
relative to the prior year at 153.5 pence with reported Earnings Per Share
decreasing by (2)% to 105.5 pence.
Final dividend
Dividend per Share (pence) Mar 2026 Mar 2025
Interim Dividend 21.4 21.2
Final Dividend recommended 47.3 43.0
Full Year Dividend 68.7 64.2
We believe that dividends should be sustainable and based on earnings
performance, while also enabling the longer-term growth prospects of our
assets and operations. To that end, the dividend plan to 2029/30 is designed
to balance income to shareholders with the appropriate funding for a
transformational growth plan that will ultimately create greater value and
total return for shareholders over the long term.
In line with that dividend plan and reflecting the strategic progress made to
deliver sustainable earnings growth, we have announced a final dividend of
47.3 pence for payment on 17 September 2026. This amounts to a 2025/26 full
year dividend of 68.7 pence, representing an increase of 7% on the prior year.
Capital expenditure programme
Adjusted Investment and Capex Summary Mar 2026 Mar 2026 Mar 2025(1)
Share % £m £m
SSEN Transmission (net of 25% non-controlling interest) 48% 1,717.6 953.5
SSEN Distribution 24% 851.8 635.8
Regulated electricity networks total 72% 2,569.4 1,589.3
SSE Renewables 21% 739.0 1,001.8
SSE Thermal 5% 197.5 183.8
Energy Customer Solutions 1% 34.8 80.0
SSE Energy Markets - 10.2 8.7
Corporate unallocated 1% 34.7 46.8
Adjusted investment and capital expenditure 100% 3,585.6 2,910.4
1 Comparative financial information has been restated, please see note 2.3 to
the Summary Financial Statements
During the year ended 31 March 2026, adjusted investment, capital and
acquisitions expenditure totalled £3,585.6m, compared to £2,910.4m in the
prior year. The increased investment was driven mainly by our regulated
electricity networks divisions, with lower overall deployment of capital
across the other businesses, and no acquisitions expenditure.
Further detail on the capital expenditure in the year can be found in the
Business Unit Operating Review.
Financial Outlook
Financial outlook for 2026/27
SSE's unique mix of assets across Networks, Renewables and Flexibility has
been carefully selected to provide a diverse and resilient business mix that
will perform in periods of significant macro-economic, political or regulatory
uncertainty. With increasing investment into assets underpinned by regulated
and index-linked earnings, our financial resilience is expected to grow as the
long-term strategic investment plan is delivered.
Given this resilience, we confirm the individual performance expectations for
each Business Unit for the 2026/27 financial year as follows:
· SSEN Transmission - It is expected that adjusted operating profit will
be significantly higher than 2025/26, reflecting increased allowed revenue
generated by continued acceleration of investment.
· SSEN Distribution - We anticipate that adjusted operating profit will
be at similar levels to 2025/26.
· SSE Renewables - The business is expected to deliver similar levels
of adjusted operating profit as 2025/26 as increases in capacity offset lower
merchant power prices.
· SSE Thermal - It is expected that adjusted operating profit will be
significantly higher than 2025/26, reflecting the step up in contracted
Capacity Market payments.
· Energy Customer Solutions - We anticipate that the adjusted operating
profit for these businesses will be lower than 2025/26 reflecting the
continued unwind of wind related income.
These expectations remain subject to normal weather conditions, current market
conditions and plant availability.
Given the strong strategic progress made in the year, and after considering
the impact of current and forecast market conditions, we continue to reiterate
our 168 - 193 pence adjusted Earnings Per Share guidance range (being the
original 175 - 200p target, adjusted for the dilutive impact of the £2bn
equity raise completed in November 2025 resulting in an increased number of
shares).
With capital expenditure and investment continuing to ramp up in line with the
long term investment plan, full year capex is expected to significantly
increase to over £5bn, in line with the phasing of the £33bn investment plan
announced in November 2025, with net debt continuing to be comfortably within
our recently reaffirmed strong investment grade credit ratings.
Outlook to 2029/30
Transformational five-year investment programme
In November 2025, we announced a transformational £33bn five-year investment
plan to 2029/30, significantly increasing exposure to UK electricity Networks
and driving long-term value creation with attractive regulatory asset value
and earnings growth.
This plan represents a trebling of investment over the five-year period, with
around 80% or £27bn to be invested in regulated UK electricity Networks and
around 20% or £6bn selectively in Renewables and system Flexibility projects:
· SSEN Transmission (~67% or ~£22bn) delivering the RIIO-T3 investment
programme which is critical to connecting renewables and alleviating existing
constraints within the electricity transmission network. This investment,
together with that from our 25% partner, is expected to increase gross RAV to
around £30bn by the end of 2029/30 representing an ~30% CAGR.
· SSEN Distribution (~15% or ~£5bn) delivering the remaining RIIO-ED2
investment programme in addition to anticipated strategic investment in ED3.
This investment is expected to increase gross RAV to between £9 - 10bn by the
end of 2029/30 representing a ~10% CAGR.
· SSE Renewables (~12% or ~£4bn) delivering its existing construction
programme together with highly disciplined investment into exciting growth
options. This focus on financial discipline and selective growth is expected
to result in a targeted ~9GW of installed capacity by the end of 2029/30.
· SSE Thermal and other businesses (~6% or ~£2bn) predominantly
focused on flexible generation technologies and serving key customers.
The investment plan includes around £3bn of currently uncommitted capex
across the SSE Renewables and SSE Thermal businesses. In allocating this
capital, we continue to apply strict returns criteria for new energy projects
to ensure attractive shareholder returns whilst ensuring strategic alignment
with our clean electricity focus.
Industry-leading capital growth
The record programme of investment outlined above is expected to deliver
industry-leading capital growth. In the Networks businesses, gross RAV is
expected to more than treble to around £40bn and, with selective and
disciplined investment, Renewables installed capacity is set to almost double
to around 9GW by the end of the plan. This material capital growth will create
significant long-term value for shareholders whilst unlocking wider economic
benefits for society.
Resilient funding strategy
This programme is backed by a comprehensive funding strategy that maintains
our strong balance sheet alongside a continued commitment to strong investment
grade credit ratings with net debt / EBITDA expected to remain below 4.5x
throughout the course of the plan. In addition to expected operational
cashflow generation an increase in adjusted net debt and hybrid capital and a
£2bn equity placing which was completed in November 2025, around £2bn of
targeted asset rotations are expected across the portfolio, aligned with
investment needs across the five-year plan.
Outlook to 2029/30
Investments made in Networks and selective Renewables and system Flexibility
projects are expected to drive a significant uplift in earnings, with an
adjusted Earnings Per Share CAGR of between 10-13% from 2025/26 delivering 225
- 250 pence in 2029/30. This growth is underpinned by ~80% of EBITDA being
index linked in 2029/30, due to the upweighting in Networks investment,
providing consistent, predictable and highly visible earnings as the business
grows materially.
A sustainable and progressive dividend policy
We are also committed to continuing our existing sustainable and progressive
dividend policy to 2029/30. This policy targets annual dividend per share
growth of between 5 - 10% from an unaltered 64.2 pence 2024/25 baseline. We
have continued to retain the existing scrip dividend option for shareholders
whilst also restricting earnings dilution from the scrip by capping take-up at
25% through a share buyback if necessary.
Supplemental Financial Information
Exceptional items and certain re-measurements
Exceptional items
We recognised an exceptional charge within continuing operations of £162.6m
before tax in the current period. £84.7m of this relates to Group
restructuring costs (including £21.8m of asset impairments) with a further
£77.9m charge for UK onshore wind projects affected by grid connection
delays, partially offset by valuation uplifts across Gas Storage and Triton
Power.
Exceptional items £m
Group restructuring charges 84.7
Net asset impairments 77.9
Total exceptional charge 162.6
Further detail on exceptional items can be found within note 7 and the
definition of exceptional items can be found in note 4.2 of the Summary
Financial Statements.
Group-wide operating model and efficiency review
During 2025, in line with SSE's commitment to capital and operational
discipline, we commenced an Operating Model and Efficiency Review, intended to
ensure that SSE has the right structures, resourcing and accountabilities to
maximise the growth opportunities ahead.
This review is now largely complete, with the exception of the ongoing SSEN
Distribution transformative change programme. Actions taken as a result of
this review are expected to deliver recurring efficiency and cost control
savings across the Group.
Certain re-measurements
Certain re-measurements within continuing operations £m
Operating derivatives (including share from jointly controlled entities net of (168.1)
tax)
Commodity stocks held at fair value 10.4
Financing derivatives 17.9
Total net re-measurement charge (139.8)
Operating derivatives
SSE enters into forward purchase contracts (for power, gas and other
commodities) to meet the future demands of the energy supply businesses and to
optimise the value of its generation assets. Some of these contracts are
determined to be derivative financial instruments under IFRS 9 and as such are
required to be recorded at their fair value as at the date of the financial
statements.
We report the change in the fair value of these forward energy derivatives
separately as this mark-to-market movement does not reflect the realised
operating performance of the businesses in the year. The underlying value of
these contracts is recognised as the relevant commodity is delivered, which
for the majority of the position at 31 March 2026 is expected to be within the
next 18 months.
The change in the operating derivative mark-to-market valuation was an
£(168.1)m negative movement from the start of the period, reflecting a
£(152.0)m negative movement on fully consolidated operating derivatives
including affiliate and commercial Contracts for Difference (CfDs) combined
with a £(16.1)m negative share of movement on derivatives in jointly
controlled entities, net of tax.
As in prior years, the reported result does not include re-measurement of 'own
use' hedging agreements which do not meet the definition of a derivative
financial instrument under IFRS 9.
Commodity stocks held at fair value
Gas inventory purchased for secondary trading opportunities is held at fair
value with reference to the forward month market price. Given the low level of
gas storage held at year end, combined with trading churn, the book value of
commodity stocks were broadly in line with fair value.
Financing derivatives
In addition to the movements above, a positive movement of £17.9m was
recognised on financing derivatives in the year, including mark-to-market
movements on cross-currency swaps and floating rate swaps that are classed as
hedges under IAS 39. These hedges ensure that any fair value movement in net
debt is predominantly offset by a movement in the derivative position. The
positive movement was primarily driven by Sterling weakness on cross-currency
swap contracts.
These re-measurements are presented separately as they do not represent
underlying business performance in the year. The result on financing
derivatives will be recognised in adjusted profit before tax when the
derivatives are settled.
Hedging position
Our long-established approach to hedging looks to generally reduce broad
exposure to commodity price variation in advance of delivery. We continue to
monitor market developments and conditions and periodically alter our hedging
approach in response to changes in exposure profile.
SSE Renewables
Energy output hedges are progressively established through the forward sale of
either:
· Electricity - where market depth and liquidity allow;
· Gas and carbon equivalents - recognising that spark spread
exposures remain; or
· Gas equivalents only - recognising that carbon and spark spread
exposures remain.
This approach reflects that certain energy products have lower available
forward market depth and liquidity. Whilst some basis risk or commodity
exposure will remain, it facilitates the reduction of SSE Renewables' overall
exposure to potentially volatile spot market outcomes.
The table below notes both the proportion of hedges and prices of those hedges
for electricity and for gas alone. Due to market liquidity in later periods,
there are no gas and carbon equivalent hedges in place.
GB offshore wind, onshore wind and hydro 2025/26 2026/27 2027/28 2028/29
Total energy output volumes hedged - TWh 11.8 10.5 11.6 2.4
- Hedge in electricity & equivalents - TWh 6.2 8.4 4.2 0.2
- Electricity hedge price - £MWh £87 £76 £70 £73
- Hedge in Gas - TWh 5.6 2.1 7.4 2.2
- Gas hedge price - £MWh £78 £67 £72 £45
Note: where gas and carbon trades have been used as a proxy for electricity, a
constant 1MWh:69.444 th and 1MWh:0.3815 te/MWh conversion ratio between
commodities has been applied. These same ratios have been used to convert
underlying commodity prices into electricity £MWh and therefore no
assumptions have been made on either spark or carbon.
The table above excludes any volumes and income under separate contracts such
as CfDs, Renewables Obligation Certificates (ROCs) and Balancing Mechanism
activity. No hedging activity is undertaken for assets in early-stage
construction, with hedging activity gradually built up over the construction
period as greater certainty over operational dates is received.
Our established approach seeks to minimise the volumetric downside risk for
renewable energy output by targeting a hedge of less than 100% of its
anticipated wind energy output for the coming 12 months. The targeted hedge
percentage is reviewed and adjusted as necessary to reflect any changes in
market and wind capture insights. Forward hedges for both wind and hydro are
progressively established over a 36-month period, although the extent of
hedging activity will depend on the available market depth and liquidity.
Target hedge levels are achieved through the forward sale of either
electricity or a combination of gas or carbon equivalents as outlined above.
Any non-electricity forward contracts will be converted into electricity
hedges ahead of delivery, which may lead to increases or decreases in the
average hedge price achieved.
SSE Thermal
Hedging for the flexible thermal fleet is by its nature dynamic, changing as
market values vary with a constant process of re-optimisation to accrue future
value for SSE Thermal assets. At negative spark spreads this hedge volume is
therefore likely to be very low; and at higher prices the hedge will be much
larger.
At all times the thermal portfolio offers the wider Group protection from
price spikes, renewables shortfall or asset availability issues and therefore
provides material risk management value to the Company.
SSE Energy Markets
This business provides the route to market and manages the execution for all
of SSE's commodity trading outlined above (spark spread, power, gas and
carbon). This includes monitoring market conditions and liquidity and
reporting net Group exposures. The business operates under strict position
limits and VAR controls.
There is some scope for position-taking to permit this business to manage
around shape and liquidity and providing market insight whilst taking
optimisation opportunities. This is contained within a total daily Value at
Risk (VAR) limit of £9m.
Financial management and balance sheet
Key metrics Mar 2026 Mar 2025(1)
£m £m
Net Debt / EBITDA(2) 3.3 3.1
Adjusted net debt and hybrid capital (£m) 10,095.0 10,066.7
Average debt maturity (years)(3) 5.7 5.6
Average cost of debt at period end (including all hybrid coupon payments) 4.1% 4.0%
Adjusted net finance costs 211.8 274.7
1 Comparative financial information restated, please see note 2.3 to the
Summary Financial Statements.
2 Net debt represents the Group adjusted net debt and hybrid capital. EBITDA
represents the full year Group adjusted EBITDA, less £157.4m at March 2026
for the proportion of adjusted EBITDA from equity-accounted Joint Ventures
relating to project financed debt.
3 The average debt maturity assumes Hybrids are refinanced on their first call
date
Principal sources of debt funding Mar 2026 Mar 2025
Bonds 56% 60%
Hybrid debt and equity securities 24% 16%
European investment bank loans 6% 4%
US private placement 7% 7%
Short-term funding 4% 10%
Index-linked debt 3% 3%
% of which has been secured at a fixed rate 92% 91%
Rating Agency Rating Criteria Date of Issue
Moody's Baa1 'stable outlook' 'Low teens' Retained Cash Flow/Net Debt 13 February 2026
Standard and Poor's BBB+ 'stable outlook' About 18% Funds from Operations/Net Debt 13 November 2025
Fitch BBB+ 'stable outlook' 23 February 2026
Maintaining a strong balance sheet
A key objective of our long-term approach to balancing capital investment,
debt issuance and securing value and proceeds from disposals is to maintain a
strong net debt/EBITDA ratio. We calculate this ratio based on a methodology
that best reflects our activities and commercial structure, in particular to
securing value and protecting our balance sheet through prudent risk sharing
by using Joint Ventures and non-recourse project financing.
We have the capacity (if required) to exceed a 4.5x net debt/EBITDA ratio,
whilst remaining above the equivalent ratios required for a strong investment
grade credit rating. Reflecting the strength of the Group's balance sheet, the
net debt / EBITDA ratio at 31 March 2026 was 3.3x and it is expected that this
ratio will trend upwards as our significant investment programme is delivered.
Adjusted net debt and hybrid capital
SSE's adjusted net debt and hybrid capital was £10.1bn at 31 March 2026 which
is consistent with the £10.1bn at 31 March 2025. Cash inflows from the £2bn
equity placing in November 2025 and strong operating cashflows have been
offset by our capital investment programme, dividend and interest payments.
Debt summary
SSE plc together with its subsidiary, Scottish Hydro Electric Transmission
(SHET) plc, issued £2.5bn of new long-term debt and hybrid capital in the
year to March 2026 whilst also continuing to roll short-term Commercial Paper
at similar levels to March 2025. The debt issues include:
· In June 2025, SSE plc issued €1.3bn (£1.1bn) dual tranche
equity accounted hybrid bonds being a €800m (£0.7bn) hybrid bond at 4.00%
and a €500m (£0.4bn) hybrid bond at 4.50%, both of which remain denominated
in Euro.
· In September 2025 Scottish Hydro Electric Transmission plc issued
a €750m (£647m) eight-year Eurobond maturing November 2033 with a coupon of
3.375% and an all-in GBP cost of 5.20% once swapped back to Sterling.
· In September 2025 Scottish Hydro Electric Transmission plc raised
€100m (£86m) by increasing the size of its existing Eurobond repayable on
September 2032, with a coupon of 3.375% and an all-in GBP cost of 5.06% once
swapped back to Sterling.
· In October 2025 Scottish Hydro Electric Transmission plc executed
a £250m 5-year term loan with a 1-year extension option at a cost of SONIA
+75bps.
· In February 2026 Scottish Hydro Electric Transmission plc issued
a1.5bn NOK (£113m) 10-year private placement maturing 11 February 2036 with a
coupon of 4.98% and an all-in GBP cost of SONIA +125bps once swapped back to
Sterling
· On 27 March 2026, SSE plc executed a €400m (£346m) 2-year
Floating Rate Note at a cost of EURIBOR + 47bps which has been swapped to
Sterling at a cost of SONIA +75bps. Proceeds from the Floating Rate Note were
received on 7 April 2026.
Over the next 12 months there is £1.2bn of medium- to long-term debt and
£0.5bn of short-term debt maturing. SSE had access to £6.5bn (gross of the
Minority Interest in SHET plc) of committed bank facilities at 31 March 2026.
Hybrid bonds summary
Hybrid bonds are a core part of our capital structure, helping to diversify
the investor base, supporting credit ratings and providers of senior debt, as
their 50% equity treatment by the rating agencies is positive for credit
metrics. A summary of SSE's hybrid bonds as at 31 March 2026 can be found
below:
Issued Hybrid Bond Value(1) All-in rate(2) First Call Date Accounting Classification
July 2020 £600m 3.74% Apr 2026 Equity
July 2020 €500m (£453m) 3.68% Jul 2027 Equity
April 2022 €1bn (£831m) 4.00% Apr 2028 Equity
June 2025 €800m (£679m) 4.00% Sep 2030 Equity
June 2025 €500m (£425m) 4.50% Jun 2033 Equity
1 Sterling equivalents shown reflect the fixed exchange rate on date of
receipt of proceeds and is not subsequently revalued.
2 All-in rate reflects coupon on bonds plus any cost of swap into sterling
which currently only applies to July 2020 Hybrid.
A table detailing coupon payments on existing hybrids is shown below:
Hybrid coupon payments 2025/26 2026/27 2027/28
HYa FYa HYe FYe HYe FYe
Total equity hybrid coupon (cash accounted)(1) £73m £73m £127m £127m £97m £97m
1 Coupon payments on €2.8bn of hybrid bonds remain denominated in Euros and
are therefore subject to foreign exchange adjustments.
Summarising cash and cash equivalents
At 31 March 2026, we had cash and cash equivalents of £1.5bn, which is higher
than the £1.1bn at March 2025 due to timing of new debt issues and the £2bn
equity raise which has resulted in a higher surplus cash position being held
during the second half of the financial year.
Cash collateral is only required for forward commodity contracts traded
through commodity exchanges, with the level of cash collateral either provided
or received depending on the volume of trading through the exchanges, the
periods being traded and the associated price volatility.
At 31 March 2026 the collateral balance and other deposits were a net
liability (i.e. collateral received) of £246m (2025: £63m net liability).
The collateral movement in the current year reflects an increase in the
variation margin on 'in the money' positions due to higher commodity prices
partially offset by increase in initial margins following an increase in
volatility.
Short-term funding
We had £6.5bn (gross of the Minority Interest in SHET plc) of committed bank
facilities in place at 31 March 2026 to ensure the Group has sufficient
liquidity to allow day-to-day operations and investment programmes to continue
in the event of disruption to Capital Markets preventing the issuance of new
debt for a period of time. The below table sets out the facilities that have
been entered as at 31 March 2026:
Date Issuer Debt type Term Value
Oct 24 SSE plc Syndicated Revolving Credit Facility with 15 Relationship Banks 2030 £1.5bn
Oct 24 SHET plc Syndicated Revolving Credit Facility with 15 Relationship Banks 2030 £1.5bn
Dec 25 SHET plc Bank facility guaranteed by National Wealth Fund 2029 £1.0bn
Dec 25 SHET plc Export Credit Facility guaranteed by EKN 2029 £0.5bn
Mar 26 SHET plc Export Credit Facility guaranteed by SACE 2030 £0.5bn
In addition to the facilities set out in the table above, SSE plc signed a
commitment letter on 31 March 2026 which gives us the right to enter a £1.5bn
committed facility between 31 March 2026 and 30 June 2026.
The revolving credit facilities can also be utilised to cover short-term
funding requirements. There were no drawings on any of the committed
facilities at 31 March 2026. Both the Syndicated Revolving Credit Facilities
have one-year extension options and are classified as sustainability linked
with interest rate and fees paid dependant on various ESG-related metrics
being achieved.
Maintaining a prudent treasury policy
Our treasury policy is designed to maintain a prudent and flexible funding
position. Cash from operations is first used to finance regulatory and
maintenance capital expenditure and then dividend payments, with investment
and capital expenditure for growth financed by a combination of cash from
operations, bank borrowings, and bond issuance.
SSE borrows as required on different interest bases with financial instruments
being used to achieve the desired out-turn interest rate profile. At 31 March
2026, 92% of borrowings were at fixed rates.
Borrowings are mainly in Sterling and Euros to reflect the underlying currency
denomination of assets and cash flows within SSE. All other foreign currency
borrowings are swapped back into either Sterling or Euros. Transactional
foreign exchange risk arises in respect of procurement contracts, fuel and
carbon purchasing, commodity hedging and energy portfolio management
operations, and long-term service agreements for plant. Our policy is to hedge
any material transactional foreign exchange risks using forward currency
purchases and/or financial instruments. Translational foreign exchange risk
arises in respect of overseas investments; hedging in respect of such
exposures is considered on a case-by-case basis.
Operating a Scrip Dividend Scheme
As part of the Group's dividend plan to 2029/30, take-up from the Scrip
Dividend Scheme is capped at 25%. This cap is implemented by means of a share
repurchase programme, or 'buyback', following payment of the final dividend.
The scale of any share repurchase programme would be determined by
subscription to the Scrip Dividend Scheme across the full year, taking into
account the interim and final dividend elections.
Overall Scrip Dividend take-up for the 2024/25 financial year was 9.7%, and
therefore no buyback was required.
Joint Venture and associate non-recourse project financing
SSE's financial results include contributions from equity interests in Joint
Ventures ("JVs") and associates, all of which are equity accounted. The
details of the most significant of these are included in the table below. This
table also highlights the non-recourse project finance debt within each Joint
Venture, in proportion to SSE's equity ownership. The total proportion of
external non-recourse project finance debt was around £3.8bn at 31 March
2026.
JVs and associates(1) Asset type SSE holding Proportional non-recourse external debt SSE Shareholder loans
Marchwood Power 920MW CCGT 50% No external debt No loans outstanding
Seabank Power 1,234MW CCGT 50% No external debt No loans outstanding
Slough Multifuel 55MW energy-from-waste 50% No external debt £173m
Triton Power Holdings 1,200MW CCGT / 140MW OCGT 50% No external debt No loans outstanding
Beatrice Offshore Windfarm 588MW offshore wind farm 40% £512m Project financed
Dogger Bank A Wind Farm 1,200MW offshore wind farm 40% £974m £313m
Dogger Bank B Wind Farm 1,200MW offshore wind farm 40% £1,002m £16m
Dogger Bank C Wind Farm 1,200MW offshore wind farm 40% £931m Project financed
Ossian Offshore Windfarm ScotWind seabed 40% No external debt No loans outstanding
Seagreen Wind Energy 1,075MW offshore wind farm 49% £386m £972m(2)
Seagreen 1A Offshore wind farm extension 49% No external debt £33m
Clyde Windfarm 522MW onshore wind farm 50.1% No external debt £127m
Dunmaglass Wind Farm 94MW onshore wind farm 50.1% No external debt £47m
Stronelairg Wind Farm 228MW onshore wind farm 50.1% No external debt £89m
Cloosh Valley Wind Farm 105MW onshore wind farm 25% No external debt £23m
Neos Networks Private telecoms network 50% No external debt £87m
1 Greater Gabbard, a 504MW offshore wind farm, is proportionally consolidated
and reported as a Joint Operation with no loans outstanding.
2 For accounting purposes, £324m of the £972m of SSE shareholder loans
advanced to Seagreen Wind Energy are classified as equity.
Pensions
Contributing to employees' pension schemes - IAS 19 Mar 2026 Mar 2025
£m £m
Net pension scheme asset recognised before deferred tax 459.8 501.8
Employer cash contributions Scottish Hydro Electric scheme 0.9 0.9
Employer cash contributions SSE Southern scheme 25.6 25.5
Deficit repair contribution included above 16.0 15.5
In the year to 31 March 2026, the Group's pension surplus decreased by
£42.0m, from £501.8m to £459.8m, primarily due to actuarial loss of £80.7m
offset by the contributions to the schemes.
The SSE Southern scheme's surplus decreased by £52.6m in the year due
primarily to a £78.6m actuarial loss, offset by contributions to the scheme
of £25.6m. The Scottish Hydro Electric scheme is partially insured against
volatility in its pensioner members through the purchase of 'buy-in' contracts
meaning a significant portion of scheme liabilities are protected from
volatility. During the year the Scottish Hydro Electric scheme's surplus
increased by £10.6m.
Additional information on employee pension schemes can be found in note 15 to
the summary financial statements.
Sustainability and Safety Summary
Performance against 2030 Goals Mar 2026 Mar 2025
Cut carbon intensity by 80%
- Scope 1 GHG intensity (gCO2e/kWh) 194 218
Increase renewable energy output fivefold
- Renewable generation output (TWh)(1) 14.5 13.3
Enable low-carbon generation and demand
- Renewables connected in SSEN Transmission network area (GW) (2) 10.8 10.6
Champion a fair and just energy transition
- Contribution to GDP UK/Ireland (£bn / €bn)(3) 9.66/1.36 7.88/0.95
- Jobs supported in UK and Ireland(2) 83,360/4,990 62,000/5,190
1 Includes pumped storage, battery energy storage systems, biomass and
constrained-off wind in GB.
2 Prior period comparators restated to reflect data refinement. Transmission
and distribution connected capacity within the SSEN Transmission Network area,
includes pumped storage and battery storage.
3 Direct, indirect and induced Gross Value Added and jobs supported, from
third-party analysis.
Safety Performance Mar 2026 Mar 2025
Total Recordable Injury Rate per 100k hours worked (SSE and contractors) 0.17 0.16
Measuring performance against SSE's 2030 Goals
SSE's sustainability strategy supports the five year investment plan,
underpinning the transition to net zero and driving long-term value creation.
SSE's four 2030 Goals, directly linked to the UN Sustainable Development
Goals, ensure it tackles the challenge of climate change in a way that is fair
and just for workers and communities.
Cut carbon intensity by 80%: SSE's scope 1 GHG intensity of electricity
generated in 2025/26 was 194gCO2e/kWh, compared to 218gCO2e/kWh last year, and
the lowest SSE has recorded. This reflects increased renewables output from
new assets alongside lower thermal generation due to maintenance outages.
While SSE's carbon intensity has reduced by 37% since 2017/18, as outlined
last year, in the context of the current market and policy environment, SSE's
carbon intensity goal is on target but with risk.
Renewable Output goal: Output during the year increased to 14.5TWh primarily
driven by increased capacity from initial commissioning of Dogger Bank A and
Yellow River which was partially offset by mixed weather conditions
particularly in hydro. As outlined in the full year, given the challenging
market and policy environment, SSE is unlikely to meet its ambitious goal of
50TWh of renewable generation output by 2030.
Enable low-carbon generation goal: As of 31 March 2026, SSE's north of
Scotland Transmission network had 10.8GW of installed renewable capacity
connected, having surpassed its RIIO-T2 target of 10GW by 2024. The slight
increase in renewable capacity connected since last year reflects an increase
in large embedded renewable generation schemes at the distribution level.
Champion a fair and just energy transition: SSE continued with its strategy to
share value with society through the energy transition. In 2025/26, SSE
contributed £10.84bn to UK and Ireland GDP - up from £8.68bn last year and
our highest contribution since 2018/19 (adjusted for current prices). We also
supported 88,350 jobs across the UK and Ireland, up significantly from 67,190
in 2024/25. 2024/25 was a record year for community investment, with nearly
£25m awarded through SSE's community funds, supporting over 300 local
communities.
Safety performance: SSE's combined employee and contractor TRIR remained
steady at 0.17, compared to 0.16 the previous year. Over 14,000 employees and
contract partners have completed immersive safety training since it was
introduced in 2022, supporting stronger safety behaviours.
Business Operating Review
SSEN Transmission
SSEN Transmission operates one of the fastest growing regulated electricity
networks in Europe. It owns, operates and develops the high voltage
electricity transmission system in the north of Scotland and its islands and
is owned 75% by SSE plc and 25% by Ontario Teachers' Pension Plan Board. All
references to performance indicators relate to 100% of the business unless
otherwise stated.
Key Performance Indicators March 26 March 25
Adjusted operating profit(1) - £m 562.6 322.5
Reported operating profit - £m 750.1 430.0
Adjusted investment and capital expenditure(1) - £m 1,717.6 953.5
Gross Regulated Asset Value (RAV) - £m(2) 8,955 7,171
SSE Share Regulated Asset Value (RAV)(1,2) - £m 6,716 5,378
Renewable Capacity connected within SSEN Transmission area - GW(3) 10.8 10.6
1 Excludes 25% minority interest
2 Estimated and subject to outturn of annual regulatory process
3 Prior period comparator restated to reflect data refinement. Transmission
and distribution connected capacity within the SSEN Transmission Network area,
includes pumped storage and battery storage.
Financial performance
Adjusted operating profit, which is presented net of the business's 25%
non-controlling interest, increased by 74% to £562.6m from £322.5m in the
prior year. Revenue growth is driven by allowances agreed with the regulator
to fund increasing investment, a proportion of which is returned in the
corresponding financial year. This investment has been funded by SSEN
Transmission and its shareholders and is quoted before debt interest and tax
payments are deducted. In addition, the prior year included a one-off negative
timing adjustment relating to tax relief.
Reported operating profit increased to £750.1m compared to £430.0m as a
result of the movements above but reflecting that non-controlling interests
are fully consolidated for all profit metrics under IFRS.
Net capex totalled £1,717.6m, an increase of 80% on the comparative year,
supporting the UK's grid upgrade, and included £219m on the Orkney link
project where major substation progress has been made, and £212m on the
Argyll and Kintyre upgrade where substation and overhead line work has
progressed. Capex of £137m was invested at the Eastern Green Link 2 (EGL2)
project where Peterhead converter station work has advanced and the
manufacturing of the submarine cable is under way. Remaining capex was
delivered primarily across the other large capital projects.
Operational delivery
SSEN Transmission continues to deliver sector-leading operational performance,
securing the full reward through Ofgem's 'Energy Not Supplied' incentive, the
third year the business has achieved this throughout the RIIO-T2 price
control, underpinning its goal of zero interruptions to homes and businesses.
Delivery of the capital investment programme has continued at pace during the
year. With progress on the 11 major projects detailed below, other progress in
the year included the Kergord to Gremista 132kV connection and Gremista Grid
Supply Point, which was completed in April 2026. Full energisation will follow
completion of SSEN Distribution's 'Shetland Standby Project', anticipated
later in 2026.
The East Coast 400kV upgrade between Kintore and Kincardine also continues to
make good progress. Several sections will be replaced with higher capacity
conductors than initially planned, with completion and full energisation of
this programme now expected in 2027.
In March 2026, SSEN Transmission confirmed its acceptance of Ofgem's Final
Determination for the RIIO-T3 period, which commenced on 1 April 2026,
recognising it as an investable and deliverable settlement overall.
Delivering on key consents
Our 11 major projects, six of which are onshore and five offshore, continue to
make good progress.
SSEN Transmission is sensitive to the views of the communities hosting its
major projects, which is why, based on one of the largest public consultation
exercises Scotland has ever seen, substations have been relocated and routes
have been altered. The business is also providing new community benefit
funding - projected to be over £100m - alongside supporting the delivery of
1,000 new homes.
With all regulatory approvals of need secured and supply chain frameworks for
delivery in place, securing all necessary planning consents remains a top
priority. Of the 34 major consents required, 25 have been secured. These
includes five substation sites, two overhead lines and two marine licence
consents achieved during 2025/26.
All outstanding consent decisions are expected within the next 12 months. This
includes four substation consents that have been appealed to the Scottish
Government following refusal by local Planning Authorities, decisions that
went against the independent expert advice of Planning Authority planning
officers.
Cambushinnie substation was previously approved by Perth and Kinross Council,
but following legal challenge that decision was rescinded. The Cambushinnie
consent is expected to be re-determined by Perth and Kinross Council this
Summer.
Delivering on construction
Timely delivery on all 11 major projects remains a priority - including those
which are classed as ASTI projects. These remain on track to be delivered in
line with their regulatory licence output dates - starting with EGL2 in
2029.
In Argyll, the first steel lattice tower on the 9km Creag Dhubh-Inveraray
overhead line has been erected, with all earthworks and the main substation
buildings at Creag Dhubh also complete ahead of the electrical installation
works.
The Orkney link has also made strong progress, with major earthworks and
steelworks complete at Dounreay and Finstown substations.
Early construction works have progressed on the Skye Reinforcement.
The EGL2 project, the first subsea link to be jointly delivered with National
Grid Electricity Transmission, marked 18 months in construction in March 2026,
with significant progress at both the Peterhead and Wren Hall sites.
Following receipt of its marine licence in November 2025, the
Spittal-Peterhead HVDC link became the fifth major project to enter
construction.
On the Eastern Green Link 3 (EGL3) project, contracts have been signed with
key supply chain partners including Hitachi Energy for the HVDC convertor
stations and NKT for manufacture and installation of the 690km cable.
Longer-term opportunities
In summer 2026, NESO is expected to update its second transition Centralised
Strategic Network Plan (tCSNP), Beyond 2030. This is expected to identify and
progress further onshore reinforcements and subsea links for delivery during
the next decade.
SSEN Distribution
SSEN Distribution, operating under licence as Southern Electric Power
Distribution plc (SEPD) and Scottish Hydro Electric Power Distribution plc
(SHEPD), serves around 4m homes and businesses across two licence areas in
central southern England and the north of Scotland.
Key Performance Indicators Mar 26 Mar 25
Adjusted operating profit - £m 335.3 736.0
Reported operating profit - £m 296.9 736.0
Adjusted investment and capital expenditure - £m 851.8 635.8
Regulated Asset Value (RAV) - £m 6,611 5,737
Customer Satisfaction score 9.05/10 8.81/10
Customer Minutes Lost (SHEPD) average per customer 79 69
Customer Minutes Lost (SEPD) average per customer 54 51
Customer Interruptions (SHEPD) per 100 customers 71 59
Customer Interruptions (SEPD) per 100 customers 47 42
RAV, Customer minutes lost and Customer interruptions figures estimated and
subject to outturn of annual regulatory process
Financial performance
Adjusted operating profit decreased by 54% to £335.3m compared to £736.0m in
the prior year. This large decrease was expected and driven by a non-recurring
timing effect in the prior year predominantly for cost inflation from 2022 to
2024, which significantly increased prior year allowed revenues.
Reported operating profit decreased to £296.9m compared to £736.0m in the
prior year, reflecting the movements above in addition to £(38.4)m of
exceptional restructuring costs.
Capex investment of £851.8m increased by 34% compared with the prior year,
reflecting the continued delivery aligning with the RIIO-ED2 investment plan.
In the north, £288m was invested, including commencement of major subsea
cable works at Loch A'Choire and Skye-Uist, pole-mounted transformer
replacements, and other network reinforcement work. In the south, £520m of
investment supported pole- mounted transformer replacements and key network
reinforcement schemes at Iver (West London), Fleet-Aldershot (Hampshire) and
Bramley-Thatcham (near Reading).
Operational delivery
SSEN Distribution has completed the third year of the RIIO‑ED2 price control
period, which runs to March 2028 and includes £3.6bn of baseline expenditure
(2020/21 prices), while more than £157m in additional funding has been
secured through Uncertainty Mechanisms so far.
Overall customer satisfaction scores have increased compared with 2024/25 to a
reward position in 2025/26 with a score of 9.05/10. This represents SSEN
Distribution's strongest performance since Ofgem introduced the Broad Measure
Incentive in 2015. Improvements in Time to Connect and Time to Quote also
exceeded Ofgem targets. However, storms in the north of Scotland affected
Customer Interruptions and Customer Minutes Lost.
Storm Floris was the most significant summer storm the business has ever faced
and was classed as a Category Two exceptional event, affecting almost 85,000
customers. Power was restored to 98% of customers within 48 hours. October's
Storm Amy was an exceptional '1-in-20' event, making it the third-most
damaging named storm in the north of Scotland on record. Supplies were
restored within six days, a day earlier than Storm Eowyn in January 2025,
despite Amy causing around 100 more faults.
SSEN Distribution gained £1m in reward through the Consumer Vulnerability
Incentive. Almost 400,000 tailored Power Cut Plans have been sent to customers
and - in an industry first - the business has delivered the first of 20,000
home battery packs to medically-dependent Priority Services customers most in
need.
The business's Distribution System Operator function earned an over £5m
return through Ofgem's DSO Incentive in 2024/25, up from £2m the previous
year, reflecting better stakeholder feedback and panel assessment.
Strategic progress
SSEN Distribution continues to make strong progress against its RIIO‑ED2
plan while laying the foundations for ED3. The capital delivery programme has
accelerated, including completion of a £38m project to install and energise
five new subsea cables connecting Scotland's islands.
A new £950m framework has been established to support long-term subsea
upgrades, complementing £1.4bn of existing Capital Delivery agreements for
on-land infrastructure. These are enabling major upgrades such as £155m in
Southampton, £100m in Swindon and £20m in south-west Dorset.
More than £150m of additional funding has been secured in 2025/26 through
Uncertainty Mechanisms, including £77m for the Hebrides and Orkney (HOWSUM)
re‑opener to support economic growth and increase capacity. A further £80m
relates to subsea infrastructure and cyber security. Ofgem is assessing an
additional ~£770m of UM requests, including ~£725m in Load-Related
Expenditure to support network development through the remainder of ED2 and
early ED3 mobilisation.
Connections remain a priority, with ramped offers giving a proportion of
requested capacity to customers to help manage increasing demand over time.
The business continues to support NESO's Connections Reform programme, meeting
all deadlines and guiding customers through the process. For domestic
customers seeking to connect, a new 'self-serve' tool has already generated
initial cost estimates in as little as two minutes for 2,928 customers, while
the advent of smartphone video surveys is further improving customer
experience.
SSEN Distribution plays a leading role in developing the Electricity Networks
Sector Growth Plan, which focuses on maximising the benefits to the wider
economy of ongoing electrification and decarbonisation, through the creation
of more sustainable UK-based supply chains and new skilled jobs.
RIIO-ED3 Price Control
Strategic Development Plans, now published for the entirety of SSEN
Distribution's licence areas, underpin long-term planning to 2050 and will
inform the ED3 business plan, which is due for submission in December 2026. A
period of extensive engagement is currently under way as the ED3 plan is
formed.
Ofgem's Sector Specific Methodology Decision sets out the important role for
DNOs in enabling the benefits of increased electrification and supporting
economic growth, through a combination of increased network investment
supported by flexibility. It further outlines a number of financial
considerations which will require detailed assessment, development and
decision, including potential adjustments to the Totex Incentive Mechanism
(TIM) and options to reduce gearing to address inflation impacts, alongside
confirmation of the "enhanced coordinator" role for DNOs in the rollout of
low-carbon technologies.
Through ED3 and beyond, SSEN Distribution is facing into a multi-decade growth
opportunity. To optimise the business for delivery, work continues on a
transformative change programme that is taking cost out of the business and
putting it into the systems, tools and processes needed to excel over the long
term.
SSE Renewables
SSE Renewables is a leading developer and operator of renewable energy
generation, focusing on onshore and offshore wind, hydro and battery storage
across the UK and Ireland, and in carefully selected international markets.
Key Performance Indicators Mar 26 Mar 25
Adjusted operating profit - £m 1,076.4 1,038.8
Reported operating profit - £m 725.3 617.6
Adjusted investment & capital expenditure - £m 739.0 1,001.8
Generation capacity - MW(1)
Onshore wind capacity - MW 2,570 2,454
Offshore wind capacity - MW 1,014 1,014
Conventional hydro capacity - MW 1,164 1,164
Pumped storage capacity - MW 300 300
Solar & Battery capacity - MW 231 50
Total renewable generation capacity (inc. storage) - MW(2) 5,279 4,982
Contracted capacity(3) 3,293 3,189
Generation output - GWh (including compensated constraints)
Onshore wind output - GWh(4) 6,813 6,012
Offshore wind output - GWh(4) 4,573 3,878
Conventional hydro output - GWh 2,795 2,946
Pumped storage output - GWh 280 324
Solar & Battery output - GWh 46 46
Total renewable generation (inc. storage) - GWh(5) 14,507 13,206
1. Capacity and output based on 100% of wholly owned sites and share of Joint
Ventures.
2. Total renewable generation capacity is increased by 297MW. This
principally reflects 101MW from Yellow River wind farm, Littleton solar farm
31MW and Ferrybridge BESS 150MW.
3. Contracted capacity includes sites with a CfD, RESS contract, eligible for
ROCs, or contracted under REFIT (CfD contracts may be still to commence).
4. Onshore wind output includes 1.7TWh of compensated constrained-off
generation in 2025/26 and 1.3TWh in 2024/25; Offshore wind output includes
1.4TWh of compensated constrained-off generation in 2025/26 and 1.7TWh in
2024/25.
5. Biomass capacity of 15MW and output of 78GWh in 2025/26 and 69GWh 2024/25
is excluded, with the associated operating profit or loss reported within SSE
Thermal.
Financial performance
Adjusted operating profit increased by 4% to £1,076.4m from £1,038.8m in the
prior year. Earnings reflected higher output delivered into a lower hedged
price environment, with 2025/26 hedge prices around 20% lower than the prior
year. Output was supported by generation from initial commissioning at Dogger
Bank A (1.2GW, SSE share 40%) and the delivery of Yellow River (101MW),
partially offset by mixed weather conditions particularly in hydro.
Reported operating profit increased by 17% to £725.3m from £617.6m in the
prior year. This reflects the above and other movements including
restructuring costs associated with the Group's Operating Model and Efficiency
Review and a non-cash impairment of £155.8m relating to Aberarder (50MW) and
Strathy South (208MW) onshore wind farms in Scotland, reflecting construction
programmes impacted by delayed grid access.
Capex of £739.0m was invested during the period, including £157m of equity
for Dogger Bank. Meanwhile £146m was invested in onshore wind in Scotland and
Ireland. £48m of capex was delivered in Southern Europe, with progress made
at onshore wind projects across Spain and Italy. On Battery Energy Storage
System (BESS) projects, £96m was incurred in progressing the delivery of
Derrymeen, Ferrybridge, Fiddlers Ferry and Monk Fryston.
Operational delivery
Onshore wind volumes increased by 13% from 6.0TWh to 6.8TWh, reflecting
increased capacity including the addition of Yellow River. This was partially
offset by variable weather conditions and increased levels of system-driven
curtailment in Ireland alongside planned and unplanned maintenance including
an ongoing outage at Hadyard Hill.
In offshore wind, output increased by 18% from 3.9TWh to 4.6TWh driven by
ongoing turbine commissioning work at Dogger Bank A. Hydro production
decreased by 5% from 2.9TWh to 2.8TWh reflecting mixed precipitation across
the year.
In the GB T-4 Capacity Market auction (2029/30 delivery year) SSE Renewables
secured one-year agreements for 935MW of de-rated capacity across hydro
(925MW) including 137MW for Sloy hydro scheme and 10MW of onshore wind at a
clearing price of £27.10/kW.
In Ireland's T-4 auction, a one-year agreement for 20MW of de-rated onshore
wind capacity for delivery year 2029/30 was secured at a clearing price of
€135.5/kW.
Strategic progress
SSE Renewables continues to progress the delivery of Dogger Bank wind farm
(3.6GW, SSE share 40%). Following the completion of turbine installation at
Dogger Bank A in February 2026, commissioning continues and is expected to be
substantially complete by the end of calendar year 2026. Turbine installation
is progressing strongly at Dogger Bank B (1.2GW, SSE share 40%) with the
installation run-rate far exceeding that achieved on the first phase,
resulting in 20 turbines currently installed and first power achieved in early
March. On Dogger Bank C (1.2GW, SSE share 40%) installation of transition
pieces was completed in November 2025, marking the successful installation of
foundations across all three phases. When fully complete Dogger Bank will be
capable of producing 6% of UK current demand, delivering substantial value for
consumers from this nationally significant infrastructure.
Berwick Bank wind farm, consented in July 2025 for up to 4.1GW of offshore
capacity, represents the potential of further critical infrastructure delivery
by SSE for the UK, contributing to long-term energy security and clean power
targets. If built to its full potential capacity, Berwick Bank could become
the world's largest offshore wind farm on completion. In January 2026, Berwick
Bank B secured a valuable route to market via a 20-year contract for 1.4GW of
offshore capacity at a competitive strike price for consumers of £89.49/MWh
through CfD Allocation Round 7. A final investment decision is expected in
2027.
The UK's intention to run Allocation Round 8 in the second half of 2026 is a
positive step for the energy transition. As with AR7, ambition on capacity
will be critical to sustaining offshore delivery and value for consumers. In
April 2026, further information on the offshore planning consent application
for Arklow Bank Wind Park 2 (800MW) was submitted to Ireland's statutory
planning body and a determination is anticipated by the end of the year. In
May 2026, North Falls (up to 900MW, SSE share 50%) was granted development
consent for its offshore array.
Onshore wind construction at Aberarder and Strathy South in Scotland has been
impacted by delayed grid access, resulting in the reported non-cash
impairment. Construction continues at the RESS4-contracted Drumnahough wind
farm in Ireland (58MW, SSE share 50%).
In England, Ferrybridge BESS (150MW) and Littleton solar (31MW) entered
commercial operations in March 2026. Battery installation continues at the
Monk Fryston (320MW) and Fiddlers Ferry (150MW) BESS projects. In Northern
Ireland, following a final investment decision in December 2025, construction
has started on the Derrymeen BESS (100MW) project.
In Southern Europe, Jubera wind farm (64MW) in Spain entered commercial
operations in May 2026 and construction of a further 72MW of onshore wind
capacity is under way at sites in Spain and Italy.
In hydro, repowering of Lochay power station (45MW) to extend its useful life
by at least 40 years continues. The first of the two new turbine generating
units is currently being installed and is expected to be commissioned later
this year. The Coire Glas pumped storage hydro project (1.4GW) has progressed
to the Project Assessment stage of Ofgem's Cap and Floor scheme for
long-duration electricity storage, with the minded-to decision on successful
projects expected in summer 2026.
SSE Thermal
SSE Thermal owns and operates conventional flexible thermal generation in GB
and Ireland and gas storage in GB. It is developing options for lower carbon
power generation and hydrogen storage, while maintaining its existing flexible
and efficient fleet which continues to play a critical role in the transition
to net zero.
Key Performance Indicators Mar 26 Mar 25(1)
Adjusted operating profit - £m 195.4 211.4
Reported operating profit - £m 243.0 195.3
Adjusted investment and capital expenditure - £m 197.5 183.8
Generation capacity(2) - MW
Gas-fired generation capacity - MW 6,210 6,210
Energy from waste capacity & Biomass - MW 43 43
Total thermal generation capacity - MW 6,253 6,253
Generation output(3) - GWh
Gas-fired output - GWh 14,829.9(4) 17,641.6
Energy from waste & Biomass output - GWh 186.2 182.4
Total thermal generation - GWh 15,016.1 17,824.0
Gas storage levels Mar 26 Mar 25
Gas storage level at year end - mTh 33.1 79.3
Gas storage level at year end - % 18 47
1 2025/26 reporting merges SSE Thermal and Gas Storage segments. Comparative
performance has been restated.
2 Capacity is wholly owned and share of joint ventures, and reflects
Transmission Entry Capacity.
3 Output is based on SSE 100% share of wholly owned sites and 100% share of
Marchwood PPAs due to the contractual arrangement.
4 Gas -fired output includes 56GWh Oil-fired output
Financial performance
The net adjusted operating profit for SSE Thermal fell slightly to £195.4m
compared to £211.4m in the prior year. This decrease was largely driven by
lower market performance, due to lower plant availability and periods of low
volatility.
Reported operating profitability increased to £243.0m compared to £195.3m in
the prior year. This reflects the movements above including restructuring
costs associated with the Group's Operating Model and Efficiency Review,
non-cash impairment reversals of £48.5m relating to operational Gas Storage
assets and £29.4m relating to the carrying value of the Group's investment in
Triton Power.
Operational delivery
SSE Thermal's overriding objective is to maintain commercial availability of
its existing fleet and develop investment options to support security of
supply into the 2030s and beyond. Flexible power stations continue to secure
value through a diversified stack of revenues, including the Capacity Market,
intrinsic forward spark spread, the Balancing Mechanism and other ancillary
contracts.
SSE applies rigorous commercial discipline through any auctions and remains
confident that the value of SSE Thermal assets will be realised through this
approach. Keadby 1 Power Station secured a provisional Capacity Market
agreement for 686MW de-rated electricity generation capacity, running from 1
October 2029 to 30 September 2030. Agreements were not taken for Peterhead,
Medway, Burghfield and Chickerell power stations due to the non-commerciality
of the clearing price. These assets remain contracted to 30 September 2029,
with options to secure agreements in future auctions. SSE Thermal assets in
Ireland secured agreements for 543MW of de-rated capacity, valued at a total
of around €288m, including a five-year agreement for Great Island.
SSE Thermal delivered a successful summer outage programme across the flexible
generation fleet. However, unplanned outages at Keadby 2, Medway and Great
Island impacted availability outside of the summer period.
SSE Thermal's gas storage assets remain an important risk management tool for
the Group's generation portfolio, with fast-cycle assets an important part of
a resilient energy system. Favourable summer/winter spreads enabled injection
and withdrawal in the first half of the year. Cavern Eight at Atwick returned
to service at the beginning of October 2025, delivering additional value.
Strategic progress
Construction is under way at the 300MW Tarbert Next Generation power station,
targeting full commercial operation from October 2027. The station has secured
€335m of revenues through a 10-year capacity agreement. Final investment
decision was taken on Platin, a 170MW power station in County Meath, in July
2025, and preparatory works are under way with full site mobilisation expected
in the coming months, targeting full commercial operation from October 2028.
This project is also underpinned by a 10-year capacity agreement, with a total
value of around €250m. An amendment to the planning consent was since
secured to enable Platin to run on natural gas as well as sustainable
biofuels. A further 10-year capacity agreement was secured to support this at
a value of around €20m.
SSE Thermal has developed shovel-ready programmes to extend the lives of its
existing, wholly-owned CCGTs in GB. Subject to securing multi-year Capacity
Market agreements, these investments would help ensure that existing
generation assets remain ready to respond to system need, providing the
enduring flexibility which is critical to enabling a renewables-led system.
In the UK, further detail is pending on the mechanisms to procure new-build
dispatchable capacity, including the Hydrogen to Power Business Model, any
adaptations to the Capacity Market and further allocation of Dispatchable
Power Agreements for CCS projects. These options could support investment in
SSE Thermal's flexible generation pipeline, including Keadby Next Generation
and Ferrybridge Next Generation, Keadby CCS and Peterhead CCS. For Peterhead
CCS, SSE is continuing to work with Scottish Cluster partners and UK
Government to agree a programme of funded development work.
During the course of 2025, SSE reviewed its hydrogen development strategy and,
in response to material policy delays to the roll-out of low-carbon hydrogen,
took the decision to pause its standalone hydrogen production projects.
Near-term efforts are focused on enabling hydrogen in the Humber region, and
SSE Thermal's role as an offtaker or low-carbon hydrogen for future
hydrogen-to-power projects.
Energy Customer Solutions
Energy Customer Solutions delivers a range of energy products and services to
the non-domestic market in GB and both the domestic and non-domestic markets
in the island of Ireland. It creates routes to market including Corporate
Power Purchase Agreements and green supply contracts and offers energy
solutions and distributed energy products that stabilise costs, provide speed
to power and reduce carbon emissions.
Key Performance Indicators(1) Mar 26 Mar 25
Adjusted operating profit - £m 136.9 192.1
Reported operating profit - £m 136.2 189.2
Adjusted investment and capital expenditure - £m 34.8 80.0
Aged debt (60 days past due) - £m 289.8 298.6
Bad debt expense £m 27.3 42.5
Electricity and Gas sold
Electricity Sold - Airtricity - GWh 10,577 6,704
Electricity Sold - Business Energy - GWh 8,394 9,840
Gas Sold - Airtricity - mtherms 232 237
Gas Sold - Business Energy - mtherms 85 120
Customer numbers
All Ireland energy market customers - Airtricity - m 0.72 0.77
Energy customers' accounts - Business Energy - m 0.24 0.31
1 Segmental reporting for SSE Airtricity and Business Energy have been merged
for 2025/26. Comparative performance has been restated.
Financial performance
Adjusted operating profit declined by 29% to £136.9m from £192.1m in the
prior year primarily driven by lower wind related revenues and lower supply
volumes. This was partially offset by improved debt performance and
operational efficiencies. The year saw lower customer numbers, reflecting
tighter market competition and a decision to focus on stabilisation of the new
billing system in GB.
Reported operating profit decreased to £136.2m compared to £189.2m in the
previous year, reflecting the movements above.
Operational delivery
In the last 12 months an acceleration in the development of data centres has
created opportunities for Energy Customer Solutions (ECS). In Ireland, where
the data centre sector is well established, energy sold to the data centre
sector increased by 4TWh to 6TWh, taking the total power supplied to domestic
and non-domestic customers on the island to 10.6TWh. SSE Airtricity now
supplies around 80% of the energy to data centres in Ireland.
In GB, where data centre build-out is less advanced, the focus has been on
building strategic relationships with key market players, for example through
the delivery of a private network solution to a Microsoft data centre
development in South Wales and the expansion of network capacity to Europe's
largest data centre conurbation in Slough.
ECS's supply businesses have faced difficult market conditions over the last
year. SSE Airtricity saw modest customer losses after reluctantly deciding to
increase tariffs by an average of 9.5% from October (4% Northern Ireland),
balanced with customer support initiatives. Business Energy saw a reduction in
customer numbers due to market competition and the knock-on impact of
previously paused sales.
Energy affordability remains a key concern in both GB and Ireland with
governments implementing policy measures to support customers. ECS continues
to engage with governments and other stakeholders to influence policy
direction, as well as providing a range of supports to customers.
ECS has supported customers to electrify and decarbonise their homes and
businesses in the last year. Notable achievements include installing solar
panels on 400 homes of medically vulnerable people in Ireland at no cost; and
in GB, an agreement with Transport for London to partner on delivery of solar
developments that will partially power the London Underground, with potential
for future expansion.
Strategic progress
The growing data centre sector will be an area of focus for ECS over the
coming year both in Ireland, where a long-awaited Large Energy Users policy
has essentially lifted a de facto moratorium on new facilities, and in GB,
where strong growth of the sector is expected in the UK Government's AI Growth
Zones.
Energy Customer Solutions is exploring 'speed to power' opportunities with
data centre hyperscalers and large data centre developers that face challenges
securing grid connections, including bridging solutions, private networks and
behind-the-meter generation.
SSE's existing and future pipeline of assets across SSE Renewables and SSE
Thermal, as well as existing relationships held by ECS, are strategic
strengths as the sector looks for partners to help develop large-scale energy
solutions.
With global energy cost volatility potentially continuing, SSE Airtricity and
SSE Business Energy are prepared for some challenges first few months of the
financial year. Experience of previous global energy volatility has informed
planning, and engagement with governments and regulators continues to help
shape consumer support measures. ECS seeks to support all customers,
particularly those that are vulnerable, and will continue to offer tariff
options that provide customers with choices to suit their circumstances.
SSE Energy Markets
SSE Energy Markets optimises all of SSE's market‑based assets by trading
across key commodity markets -power, gas and carbon -and managing associated
market risks to secure and enhance long‑term value.
Key Performance Indicators Mar 26 Mar 25
Adjusted operating profit - £m 43.2 30.0
Reported operating loss - £m (145.8) (42.9)
Financial performance
Adjusted operating profit increased by 44% to £43.2m from £30.0m in the
prior year. In addition to this relatively low level of baseline operating
earnings, SSE Energy Markets' trading activities also drive significant value
for the energy-exposed businesses. The increase in profitability is mainly
driven by optimisation trading on commodity positions and an increase in
volume and margin achieved on green certificate sales.
Reported operating loss increased to £(145.8)m compared to a loss of
£(42.9)m in the prior year. Despite favourable movements noted above,
reported operating results include a higher value of net remeasurement losses
on forward commodity derivatives relative to the previous year. These IFRS 9
re-measurements exclude any re-measurement of 'own use' contracts and are
unrelated to underlying operating performance.
Operational delivery
SSE Energy Markets has remained central to managing market volatility,
mitigating risk and maximising value for the Group's market based Business
Units. Operating as a single centre of excellence across all trading periods,
it secures value for SSE's asset portfolio, which continues to be reported
within individual Business Units.
Strategic progress
The business has continued to focus on optimisation activities and position
taking, all within SSE's strict position limit and Value at Risk (VAR)
controls, while also contracting third party Power Purchase Agreements and
wider route to market services.
At the full-year, SSE Energy Markets held 2.9GW of CfD-backed route-to-market
contracts, of which 2.4GW were third party including 15-year agreements with
two low-carbon solar farms. It also added 1.3GW of Combined Heat and Power
(CHP) and Open Cycle Gas Turbine (OCGT) sites from Triton Power to its
portfolio this year. The business continues to originate contracts and execute
structured products to optimise the SSE portfolio.
Trading activity in European power and gas markets continued to grow steadily,
deepening insight into the global energy complex. This capability is
increasingly important as the Group develops, constructs and operates assets
in carefully selected international markets. SSE Energy Markets will continue
to add value to the Group by providing a long-term view on market fundamentals
to inform SSE's strategic and investment decision making.
Immediate priorities for the business include the commencement of third-party,
large-scale battery energy storage systems (BESS) contracts in 2026, and
development of systematic trading functionality, using deep analytics to
maximise value for the Group's portfolio.
Alternative Performance Measures
When assessing, discussing, measuring and reporting the Group's financial
performance, management refer to measures used for internal performance
management. These measures are not defined or specified under International
Financial Reporting Standards ("IFRS") and as such are considered to be
Alternative Performance Measures ("APMs").
By their nature, APMs are not uniformly applied by all preparers including
other participants in the Group's industry. Accordingly, APMs used by the
Group may not be comparable to other companies within the Group's industry.
Purpose
APMs are used by management to aid comparison and assess historical
performance against internal performance benchmarks and across reporting
periods. These measures provide an ongoing and consistent basis to assess
performance by excluding items that are materially non-recurring,
uncontrollable or exceptional. These measures can be classified in terms of
their key financial characteristics:
Profit measures allow management to assess and benchmark underlying business
performance during the year. They are primarily used by operational management
to measure operating profit contribution and by the Board to monitor
performance against business plan. The Group has six profit measures, of which
Adjusted Operating Profit and Adjusted Profit Before Tax are the main focus of
management through the financial year and Adjusted Earnings Per Share is the
main focus of management on an annual basis. In order to derive Adjusted
Earnings Per Share, the Group has defined Adjusted Operating Profit, Adjusted
Net Finance Costs, and Adjusted Current Tax Charge as components of the
Adjusted Earnings Per Share calculation. Adjusted EBITDA is used by management
as a proxy for cash derived from ordinary operations of the Group.
Capital measures allow management to track and assess the progress of the
Group's significant capital investments and projects against their approved
investment cases, including the expected timing of their operational
deployment and to provide a measure of progress against the Group's strategic
objectives.
Debt measures allow management to record and monitor both operating cash
generation and the Group's ongoing financing and liquidity position.
During the year the Group refined its Adjusted Net Debt and Hybrid Capital
measure by removing a proportionate share of SSE plc's external debt invested
in subsidiaries with a non-controlling interest, along with any related net
finance costs from its Adjusted Net Finance Costs, Adjusted Profit Before Tax
and Adjusted Earnings Per Share measures. There have been no other changes to
the way the Group calculates its APMs in the current year.
The following section explains the key APMs applied by the Group and referred
to in these Summary Financial Statements:
Profit Measures
Group APM Purpose Closest equivalent IFRS measure Adjustments to reconcile to primary financial statements
Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) Measure which acts as proxy for cash generated from operating activities Operating profit Movement on operating and joint venture operating derivatives ("certain
re-measurements")
Exceptional items
Adjustments to Gas Production decommissioning provision
Share of joint ventures and associates' interest and tax
Depreciation and amortisation before exceptional charges (including
depreciation expense on fair value uplifts)
Share of joint ventures and associates' depreciation and amortisation
Operating profit attributable to non-controlling interest holders
Depreciation and amortisation attributable to non-controlling interest holders
Release of deferred income
Adjusted Operating Profit Measure of the underlying business performance excluding material Operating profit Movement on operating and joint venture operating derivatives ("certain
non-recurring and exceptional items re-measurements")
Exceptional items
Adjustments to Gas Production decommissioning provision
Depreciation expense on fair value uplifts
Share of joint ventures and associates' interest and tax
Operating profit attributable to non-controlling interest holders
Adjusted Profit Before Tax Measure of the underlying business performance excluding material Profit before tax Movement on operating and financing derivatives ("certain re-measurements")
non-recurring and exceptional items, before tax
Exceptional items
Adjustments to Gas Production decommissioning provision
Profit before tax attributable to non-controlling interest holders
Depreciation expense on fair value uplifts
Share of joint ventures and associates' tax
Adjusted Net Finance Costs Used to monitor the underlying cost of Group financing Net finance costs Exceptional items
Movement on financing derivatives
Share of joint ventures and associates' interest
Net financing costs attributable to non-controlling interest holders
Adjusted Current Tax Charge Measure of the current year tax charge excluding deferred and exceptional Tax charge Share of joint ventures and associates' tax
elements
Non-controlling share of current tax including tax on net finance costs
attributable to non-controlling interest holders
Deferred tax including share of joint ventures, associates and non-controlling
interests
Tax on exceptional items and "certain re-measurements"
Adjusted Earnings Per Share Measure of earnings available to ordinary shareholders on an adjusted basis Earnings per share Exceptional items
Adjustments to Gas Production decommissioning provision
Movements on operating and financing derivatives ("certain re-measurements")
Depreciation expense on fair value uplifts
Deferred tax including share of joint ventures, associates and non-controlling
interests
Net finance costs attributable to non-controlling interest holders
Rationale for Adjustments to Profit MeasureS
1. Movement on operating and financing derivatives ("certain
re-measurements")
This adjustment can be designated between operating and financing derivatives.
Operating derivatives
The Group's SSE Energy Markets function enters forward commitments or options
to buy or sell power, gas and other commodities. These contracts are used to:
meet the future demand requirements of Energy Customer Solutions, or
optimise the value of generation from SSE Renewables and SSE Thermal
generation assets; or
conduct trading activities within the value at risk limits set out by the
Energy Markets Risk Committee.
Certain of these contracts (predominantly purchase contracts) are determined
to be derivative financial instruments under IFRS 9 and as such are required
to be recorded at their fair value. Changes in the fair value of those
commodity contracts designated as IFRS 9 financial instruments are recognised
in the income statement (as part of "certain re-measurements").
The Group presents these fair value movements separately, as they introduce
volatility that does not reflect the underlying performance of its operating
segments. The underlying value of these contracts is recognised as the
relevant commodity is delivered, typically within the subsequent 12 to 24
months.
Conversely, commodity contracts that do not meet the definition of a financial
instrument under IFRS 9 (predominately sales contracts) are accounted for as
"own use" contracts and are consequently not recorded until the commodity is
delivered and the contract is settled.
Additionally, gas inventory purchased by the Group's Gas Storage business for
secondary trading opportunities is also held at fair value with gains and
losses on re-measurement recognised as part of "certain re-measurements" in
the income statement.
Finally, the mark-to-market valuation movements on SSE Renewables' contracts
for difference ("CfDs") that are not designated as government grants and are
measured as Level 3 fair value financial instruments are also included within
"certain re-measurements".
Financing derivatives
Financing derivatives include all fair value and cash flow interest rate
hedges, non-hedge accounted (mark-to-market) interest rate derivatives, cash
flow foreign exchange hedges and non-hedge accounted foreign exchange
contracts entered to manage the Group's banking, liquidity and risk management
exposures relating to interest rate and foreign exchange.
Changes in the fair value of the non-hedge account financing derivatives are
recognised in the income statement (within "certain re-measurements"). These
forward contracts are presented separately as this mark-to-market movement
does not reflect the underlying performance of the Group's operations.
Presentation
The re-measurements arising from both operating and financing derivatives,
together with their associated tax effects, are disclosed separately to aid
transparency and provide a clearer understanding of the Group's underlying
performance.
2. Exceptional items
Exceptional charges or credits, and the tax effects thereof, are considered
unusual by nature or scale and of such significance that separate disclosure
is required for the underlying performance of the Group to be properly
understood. Further explanation for the classification of an item as
exceptional is included in note 4.2.
3. Adjustments to Gas Production decommissioning provision
The Group retains an obligation for 60% of the decommissioning liabilities of
its former Gas Production business which was disposed in October 2021. The
revaluation adjustments relating to these decommissioning liabilities are
accounted for through the Group's consolidated income statement and are
removed from the Group's adjusted profit measures as the revaluation of the
provision is not considered to be part of the Group's core continuing
operations.
4. Share of joint ventures and associates' interest and tax
The Group's reported operating profit includes its share of post-tax results
from equity-accounted joint ventures and associates. For internal performance
management and for consistency, SSE excludes its share of associated interest
and tax from its Adjusted Operating Profit. On adoption of IFRS 18 the Group's
share of joint venture interest and tax will no longer be reported within
operating profit. It is expected that the Group's APM reconciliations will be
amended to maintain consistent reporting of Adjusted Profit Measures.
5. Share of joint ventures and associates' depreciation and amortisation
For management purposes, the Group considers Adjusted EBITDA ("earnings before
interest, tax, depreciation and amortisation") based on a sum-of-the-parts
derived metric which includes a share of the EBITDA from equity accounted
investments. While this is not equal to adjusted cash generated from operating
activities, it is considered useful by management in assessing a proxy for
such a measure, given the complexity of the Group structure and the range of
investment structures utilised. For the purpose of calculating the Net Debt to
EBITDA metric, Adjusted EBITDA is further refined to remove the proportion of
adjusted EBITDA from equity-accounted joint ventures relating to off-balance
sheet debt (see note 6.3).
6. Depreciation expense on fair value uplifts
When SSE reduces its ownership interest in a subsidiary through a part
disposal that results in the loss of control, the retained interest is
initially re measured at fair value. This can give rise to fair value uplifts
on the underlying assets. These uplifts are recognised as non cash exceptional
gains in the year of the transaction. The associated depreciation or
amortisation arising from these one-off uplifts is excluded from the Group's
Adjusted Profit Measures, as it does not reflect the ongoing underlying
performance of the business.
7. Release of deferred income
The Group deducts the release of deferred income in the year from its Adjusted
EBITDA metric as it principally relates to customer contributions against
depreciating assets. As the metric adds back depreciation, the income release
is also deducted.
8. Deferred tax
The Group adjusts for deferred tax when arriving at adjusted profit after tax,
Adjusted Earnings Per Share and its adjusted effective rate of tax. Deferred
tax arises as a result of differences in accounting and tax bases that give
rise to potential future accounting credits or charges. As the Group remains
committed to its ongoing capital programme, the liabilities associated are not
expected to reverse and accordingly the Group excludes these from its Adjusted
Profit Measures.
9. Results attributable to non-controlling interest holders
Certain Group subsidiaries, including SSEN Transmission, are controlled but
not wholly owned by the Group. The share of profit, depreciation,
amortisation, net finance costs, and tax attributable to non-controlling
interests is excluded from Adjusted Profit Measures to reflect only the
results attributable to the Group's ordinary shareholders. For consistency
with the refinement to the Group's adjusted debt measure, a proportionate
share of net finance costs relating to non-controlling interests is removed,
to better represent the Group's underlying economic interest. This refinement
represents a change to the derivation of the Adjusted Net Finance Costs
measure reported in the 31 March 2026 financial statements. The impact of this
change applied in the year ended 31 March 2026 has been to decrease Adjusted
Net Finance Costs from £219.8m to £211.8m (2025: £281.0m to £274.7m);
increase Adjusted Profit Before Tax from £2,016.8m to £2,024.8m (2025:
£2,138.2m to £2,144.5m); and increase Adjusted Earnings per Share from
153.0p to 153.5p (2025: 160.9p to 161.3p).
March 2026
(£m) Reported Movement on derivatives Exceptional items Reported before exceptional items and certain re-measure Adjustments to Gas Production decommissioning provision Joint venture interest and tax Depreciation expense on FV uplifts Deferred tax Results attributable to non-controlling interests Adjusted
ments
Operating profit 1,888.9 157.7 162.6 2,209.2 (12.6) 206.9 20.3 - (187.2) 2,236.6
Net finance (costs)/income (51.6) (17.9) - (69.5) - (155.7) - - 13.4 (211.8)
Profit before taxation 1,837.3 139.8 162.6 2,139.7 (12.6) 51.2 20.3 - (173.8) 2,024.8
Taxation (425.7) (16.9) (39.6) (482.2) - (51.2) - 354.2 (14.2) (193.4)
Profit after taxation 1,411.6 122.9 123.0 1,657.5 (12.6) - 20.3 354.2 (188.0) 1,831.4
Attributable to other equity holders (202.9) 1.9 - (201.0) - - - (64.5) 192.6 (72.9)
Profit attributable to ordinary shareholders 1,208.7 124.8 123.0 1,456.5 (12.6) - 20.3 289.7 4.6 1,758.5
Number of shares for EPS 1,145.4 1,145.4
Earnings per share (pence) 105.5 153.5
EBITDA
Adjusted operating profit Share of joint ventures and associates' depreciation and amortisation Depreciation expense on FV uplifts Release of deferred income Depreciation, impairment and amortisation before exceptional charges Depreciation, impairment and amortisation (before exceptional items) Adjusted EBITDA
attributable to non-controlling interests
£m £m £m £m £m
£m
£m
2,236.6 173.0 (20.3) (13.1) 879.3 (47.6) 3,207.9
March 2025 (*restated)
(£m) Reported Movement on derivatives Exceptional items Reported before exceptional items and certain re-measure Adjustments to Gas Production decommissioning provision Joint venture interest and tax Depreciation expense on FV uplifts Deferred tax Results attributable to non-controlling interests Adjusted
ments
Operating profit 1,962.2 78.5 309.7 2,350.4 (17.9) 173.3 20.1 - (106.7) 2,419.2
Net finance (costs)/income (111.3) (12.8) (0.3) (124.4) - (164.3) - - 14.0 (274.7)
Profit before taxation 1,850.9 65.7 309.4 2,226.0 (17.9) 9.0 20.1 - (92.7) 2,144.5
Taxation (518.0) (4.0) (29.7) (551.7) - (9.0) - 276.6 (13.8) (297.9)
Profit after taxation 1,332.9 61.7 279.7 1,674.3 (17.9) - 20.1 276.6 (106.5) 1,846.6
Attributable to other equity holders (143.5) - - (143.5) - - - (41.5) 111.3 (73.7)
Profit attributable to ordinary shareholders 1,189.4 61.7 279.7 1,530.8 (17.9) - 20.1 235.1 4.8 1,772.9
Number of shares for EPS 1,099.2 1,099.2
Earnings per share (pence) 108.2 161.3
*The comparative has been restated. See note 2.3.4.
EBITDA
Adjusted operating profit Share of joint ventures and associates' depreciation and amortisation Depreciation expense on FV uplifts Release of deferred income Depreciation, impairment and amortisation before exceptional charges Depreciation, impairment and amortisation (before exceptional items) Adjusted EBITDA
attributable to non-controlling interests
£m £m £m £m £m
£m
£m
2,419.2 226.0 (20.1) (14.1) 776.1 (37.8) 3,349.3
Debt Measure
Group APM Purpose Closest equivalent IFRS measure Adjustments to reconcile to primary financial statements
Adjusted Net Debt and Hybrid Capital Measure of the capital owed to investors and lenders Unadjusted net debt Cash held and posted as collateral and other deposits
Lease obligations
Borrowings and cash attributable to non-controlling interest holders
Hybrid equity
rationale for Adjustments to Debt measure
10. Cash held and posted as collateral and other deposits
Cash held and posted as collateral refers to cash balances received from and
deposited with counterparties including trading exchanges. Collateral balances
mostly represent initial and variation margin, required as part of the
management of the Group's exposures on commodity contracts, that will be
received on maturity of the related trades. Deposits with a maturity of more
than three months are also included in this adjustment. The Group includes
this adjustment to better reflect the cash resources to which it has access,
which in turn better reflects the Group's funding position.
11. Lease obligations
SSE's reported loans and borrowings include lease obligations recognised under
IFRS 16 "Leases". The Group excludes these liabilities from Adjusted Net Debt
and Hybrid Capital to better reflect the Group's underlying funding position
with its primary sources of capital.
12. Borrowings and cash attributable to non-controlling interest holders
Certain Group subsidiaries, including SSEN Transmission, are controlled but
not wholly owned by the Group. The share of external debt and cash
attributable to non-controlling interests is excluded from Adjusted Net Debt
and Hybrid Capital so that the debt metric reflects only amounts
proportionately attributable to the Group's ordinary shareholders.
Additionally, where external funding is raised by SSE plc and used to fund
investment in subsidiaries whose non-controlling interest holders do not
contribute capital on a proportionate basis, such as SSEN Transmission, the
Group has removed a proportionate share of external debt and related net
finance costs to better represent the Group's underlying economic interest.
This refinement represents a change to the Group's Adjusted Net Debt and
Hybrid Capital measure presented in the 31 March 2026 financial statements.
The impact of the change has been to decrease the Group's Adjusted Net Debt
and Hybrid Capital measure from £10,345.0m to £10,095.0m (2025: £10,186.7m
to £10,066.7m).
13. Hybrid equity
The characteristics of certain hybrid capital securities mean that they
qualify for recognition as equity rather than debt under applicable accounting
standards. Consequently, their coupon payments are presented within equity
rather than within finance costs and are not included in SSE's Adjusted Profit
Before Tax measure. To present total funding provided from sources other than
ordinary shareholders, SSE presents its adjusted net debt measure inclusive of
hybrid capital to better reflect the Group's funding position.
March 2026 March 2025
£m £m
(restated*)
Unadjusted net debt (8,578.3) (9,513.9)
Cash (held) and posted as collateral and other deposits (246.0) (63.3)
Lease obligations 456.7 455.0
Borrowings and cash attributable to non-controlling interest holders 1,258.4 937.9
Adjusted Net Debt (7,109.2) (8,184.3)
Hybrid equity (2,985.8) (1,882.4)
Adjusted Net Debt and Hybrid Capital (10,095.0) (10,066.7)
*The comparative has been restated. See note 2.3.4.
Capital Measures
Group APM Purpose Closest equivalent IFRS measure Adjustments to reconcile to primary financial statements
Adjusted Investment and Capital Expenditure Measures the Group's underlying investment in capital assets, excluding Capital additions to intangible assets and property, plant and equipment Joint ventures and associates' additions funding
non-cash or third-party funded additions
Allowances and certificates
Customer or third party funded additions
Lease asset additions
Capital expenditure attributable to non-controlling interests
Additions acquired through business combinations
Adjusted Investment, Capital and Acquisition Expenditure Expands the above measure to include acquisition related cash consideration, Capital additions to intangible assets and property, plant and equipment Joint ventures and associates' additions funding
providing a broader view of total investment growth
Allowances and certificates
Customer or third party funded additions
Lease asset additions
Capital expenditure attributable to non-controlling interests
Additions acquired through business combinations
Acquisition cash consideration
rationale for Adjustments to Capital Measures
14. Joint ventures and associates' additions funding
Joint ventures and associates' additions included in the Group's capital
measures represent the direct loan or equity funding provided by the Group to
joint venture and associate arrangements in relation to capital expenditure
projects. This has been included to better reflect the Group's use of directly
funded equity accounted vehicles to grow the Group's asset base. Asset
additions funded by project finance raised within the Group's joint ventures
and associates are not included in this adjustment.
15. Allowances and certificates
Allowances and certificates consist of purchased carbon emissions allowances
and generated or purchased renewable source of generation certificates such as
renewable obligations certificates ("ROCs"). Additions of allowances and
certificates in the year are not included in the Group's "capital expenditure
and investment" APM to better reflect the Group's investment in enduring
operational assets.
16. Customer or third party funded additions
Customer or third party funded additions represents additions to the Group's
electricity and other networks that are financed by cash provided by third
parties. Given these are directly funded by customers or third parties, these
additions have been excluded to better reflect the Group's underlying
investment position.
17. Lease asset additions
Additions of right of use assets under the Group's IFRS 16 compliant policies
for lease contracts are excluded from the Group's adjusted capital measures as
they do not represent directly funded capital investment. This is consistent
with the treatment of lease obligations explained at 11, above.
18. Capital expenditure attributable to non-controlling interests
The Group's structure includes controlled but non-wholly owned subsidiaries
which are consolidated within the financial statements under relevant IFRS.
The Group has removed the share of capital additions attributable to these
equity holders from its Adjusted Investment and Capital Expenditure and
Adjusted Investment, Capital and Acquisition Expenditure measures. This is
consistent with the adjustments noted elsewhere related to these
non-controlling interests.
19. Additions through business combinations
Where the Group acquires an early-stage development company, which is
classified as the acquisition of an asset, or group of assets and not the
acquisition of a business, the acquisition is treated as an addition to
intangible assets or property, plant and equipment and is included within
Adjusted Investment and Capital Expenditure. Where the Group acquires an
established business or interest in an equity-accounted joint venture
requiring a fair value assessment in line with the principles of IFRS 3
"Business Combinations", the fair value of acquired consolidated tangible or
intangible assets is excluded from the Group's Adjusted Investment and Capital
Expenditure, as they are not direct capital expenditure by the Group. However,
the fair valuation of consideration paid for the business or investment is
included in the Group's Adjusted Investment, Capital and Acquisition
Expenditure measure.
During the current and prior year there were no significant acquisitions.
20. Cash consideration in relation to business combinations
The Group has outlined a significant investment programme which will partly be
achieved through the acquisition of businesses with development opportunities
for the Group. The cash consideration paid for these entities is included
within the Group's Adjusted Investment, Capital and Acquisition Expenditure
measure as it provides stakeholders an accurate basis of cash investment into
the Group's total development pipeline and is consistent with the reporting of
the Group's projected capital investment expectations.
During the current and prior year there were no significant acquisitions.
March 2026 March 2025
£m £m
Capital additions to intangible assets 797.2 1,045.5
Capital additions to property, plant and equipment 3,983.5 2,791.5
Capital additions to intangible assets and property, plant and equipment 4,780.7 3,837.0
Joint ventures and associates' additions 189.0 288.0
Allowances and certificates (500.6) (603.7)
Customer or third party funded additions (215.7) (163.4)
Lease asset additions (93.3) (126.7)
Capital expenditure attributable to non-controlling interests (574.5) (320.8)
Adjusted Investment and Capital Expenditure 3,585.6 2,910.4
Adjusted Investment, Capital and Acquisition Expenditure 3,585.6 2,910.4
Summary Financial Statements
Consolidated Income Statement
for the year ended 31 March 2026
2026 2025
Before Exceptional items and Total Before Exceptional items and Total
exceptional certain exceptional certain
items and re-measure-ments items and re-measure-ments
certain (note 7) certain (note 7)
re-measure ments re-measure-ments
Note £m £m £m £m £m £m
Revenue 6 10,186.5 - 10,186.5 10,131.9 - 10,131.9
Cost of sales (6,270.7) (141.6) (6,412.3) (6,210.9) (57.4) (6,268.3)
Gross profit/(loss) 3,915.8 (141.6) 3,774.2 3,921.0 (57.4) 3,863.6
Operating costs (1,818.6) (162.6) (1,981.2) (1,742.0) (309.7) (2,051.7)
Debt impairment charges (29.4) - (29.4) (47.1) - (47.1)
Other operating income 37.3 - 37.3 107.5 - 107.5
Operating profit/(loss) before joint ventures and associates 2,105.1 (304.2) 1,800.9 2,239.4 (367.1) 1,872.3
Joint ventures and associates:
Share of operating profit 311.0 - 311.0 284.3 - 284.3
Share of interest (155.7) - (155.7) (164.3) - (164.3)
Share of movement in derivatives - (21.4) (21.4) - (28.1) (28.1)
Share of tax (51.2) 5.3 (45.9) (9.0) 7.0 (2.0)
Share of profit/(loss) on joint ventures and associates 104.1 (16.1) 88.0 111.0 (21.1) 89.9
Operating profit/(loss) 6 2,209.2 (320.3) 1,888.9 2,350.4 (388.2) 1,962.2
Finance income 8 240.9 17.9 258.8 194.8 13.1 207.9
Finance costs 8 (310.4) - (310.4) (319.2) - (319.2)
Profit/(loss) before taxation 2,139.7 (302.4) 1,837.3 2,226.0 (375.1) 1,850.9
Taxation 9 (482.2) 56.5 (425.7) (551.7) 33.7 (518.0)
Profit/(loss) for the year 1,657.5 (245.9) 1,411.6 1,674.3 (341.4) 1,332.9
Attributable to:
Ordinary shareholders of the parent 1,456.5 (247.8) 1,208.7 1,530.8 (341.4) 1,189.4
Non-controlling interests 128.1 1.9 130.0 69.8 - 69.8
Other equity holders 72.9 - 72.9 73.7 - 73.7
Earnings per share
Basic (pence) 11 105.5 108.2
Diluted (pence) 11 105.4 108.1
Dividends
Interim dividend paid per share (pence) 10 21.4 21.2
Proposed final dividend per share (pence) 10 47.3 43.0
68.7 64.2
The accompanying notes are an integral part of the financial information in
this announcement.
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2026
2026 2025
£m £m
Profit for the year 1,411.6 1,332.9
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
Net (losses)/gains on cash flow hedges (14.2) 48.1
Transferred to assets and liabilities on cash flow hedges 3.2 10.0
Taxation on cashflow hedges 3.8 (11.3)
(7.2) 46.8
Share of other comprehensive loss of joint ventures and associates, net of (35.0) (16.7)
taxation
Exchange difference on translation of foreign operations 64.4 (42.9)
(Loss)/ gain on net investment hedge (87.5) 36.0
(65.3) 23.2
Items that will not be reclassified to profit or loss:
Actuarial (loss)/gain on retirement benefit schemes, net of taxation (60.6) 39.6
Share of other comprehensive (loss)/income of joint ventures and associates, (15.8) 15.8
net of taxation
Gains/(losses) on revaluation of investments in equity instruments, net of 0.1 (0.3)
taxation
(76.3) 55.1
Other comprehensive (loss)/gain, net of taxation (141.6) 78.3
Total comprehensive income for the year 1,270.0 1,411.2
Attributable to:
Ordinary shareholders of the parent 1,074.3 1,263.6
Non-controlling interests 122.8 73.9
Other equity holders 72.9 73.7
1,270.0 1,411.2
The accompanying notes are an integral part of the financial information in
this announcement.
Consolidated Balance Sheet
as at 31 March 2026
Note 2026 2025
£m £m
Assets (restated*)
Property, plant and equipment 22,022.3 18,824.1
Goodwill and other intangible assets 2,249.1 2,170.5
Equity investments in joint ventures and associates 1,945.1 1,987.3
Loans to joint ventures and associates 1,621.2 1,510.3
Other investments 7.6 8.8
Other non-current assets 604.0 447.7
Derivative financial assets 193.9 63.5
Retirement benefit assets 15 459.8 501.8
Non-current assets 29,103.0 25,514.0
Intangible assets 527.3 392.7
Inventories 434.2 462.9
Trade and other receivables 3,030.3 2,695.4
Current tax asset 18.2 29.7
Cash and cash equivalents 1,542.9 1,090.5
Derivative financial assets 651.4 178.4
Assets held for sale 12 46.3 -
Current assets 6,250.6 4,849.6
Total assets 35,353.6 30,363.6
Liabilities
Loans and other borrowings 13 1,204.4 1,964.0
Trade and other payables 3,286.9 2,708.2
Current tax liabilities 17.8 -
Financial guarantee liabilities 2.4 2.4
Provisions 59.6 80.5
Derivative financial liabilities 641.1 126.3
Liabilities directly associated with the assets held for sale 12 3.0 -
Current liabilities 5,215.2 4,881.4
Loans and other borrowings 13 8,916.8 8,640.4
Deferred tax liabilities 2,141.5 1,844.5
Trade and other payables 1,658.7 1,437.6
Financial guarantee liabilities 19.0 23.1
Provisions 711.9 676.1
Derivative financial liabilities 289.2 167.7
Non-current liabilities 13,737.1 12,789.4
Total liabilities 18,952.3 17,670.8
Net assets 16,401.3 12,692.8
Equity
Share capital 14 607.7 555.6
Share premium 2,738.9 812.6
Capital redemption reserve 52.6 52.6
Hedge reserve 397.0 432.7
Translation reserve (31.0) (8.6)
Retained earnings 8,898.7 8,336.7
Equity attributable to ordinary shareholders of the parent 12,663.9 10,181.6
Hybrid equity 14 2,985.8 1,882.4
Attributable to non-controlling interests 751.6 628.8
Total equity 16,401.3 12,692.8
*The comparative has been restated. See note 2.3.2 and 2.3.3.
The accompanying notes are an integral part of the financial information in
this announcement.
Consolidated Statement of Changes in Equity
for the year ended 31 March 2026
Share capital Share premium Capital redemption reserve Hedge reserve Translation reserve Retained earnings Total attributable to ordinary shareholders Hybrid equity Total equity before non-controlling interests Non-controlling interests Total equity
£m £m £m £m £m £m £m £m £m £m £m
At 1 April 2025 555.6 812.6 52.6 432.7 (8.6) 8,336.7 10,181.6 1,882.4 12,064.0 628.8 12,692.8
Profit for the year - - - - - 1,208.7 1,208.7 72.9 1,281.6 130.0 1,411.6
Other comprehensive loss - - - (35.7) (22.4) (76.3) (134.4) - (134.4) (7.2) (141.6)
Total comprehensive income for the year - - - (35.7) (22.4) 1,132.4 1,074.3 72.9 1,147.2 122.8 1,270.0
Dividends to shareholders - - - - - (734.1) (734.1) - (734.1) - (734.1)
Scrip dividend related share issue 3.2 (3.2) - - - 133.0 133.0 - 133.0 - 133.0
Issue of shares net of costs 48.9 1,929.5 - - - - 1,978.4 - 1,978.4 - 1,978.4
Issue of treasury shares - - - - - 17.4 17.4 - 17.4 - 17.4
Distributions to Hybrid equity holders - - - - - - - (72.9) (72.9) - (72.9)
Issue of Hybrid equity - - - - - - - 1,103.4 1,103.4 - 1,103.4
Credit in respect of employee share awards - - - - - 38.7 38.7 - 38.7 - 38.7
Investment in own shares - - - - - (25.4) (25.4) - (25.4) - (25.4)
At 31 March 2026 607.7 2,738.9 52.6 397.0 (31.0) 8,898.7 12,663.9 2,985.8 15,649.7 751.6 16,401.3
Consolidated Statement of Changes in Equity
for the year ended 31 March 2025
Share capital Share premium Capital redemption reserve Hedge reserve Translation reserve Retained earnings Total attributable to ordinary shareholders Hybrid equity Total equity before non-controlling interests Non-controlling interests Total equity
£m £m £m £m £m £m £m £m £m £m £m
At 1 April 2024 548.1 820.1 52.6 407.6 (2.6) 7,540.0 9,365.8 1,882.4 11,248.2 554.9 11,803.1
Profit for the year - - - - - 1,189.4 1,189.4 73.7 1,263.1 69.8 1,332.9
Other comprehensive income/(loss) - - - 25.1 (6.0) 55.1 74.2 - 74.2 4.1 78.3
Total comprehensive income for the year - - - 25.1 (6.0) 1,244.5 1,263.6 73.7 1,337.3 73.9 1,411.2
Dividends to shareholders - - - - - (671.0) (671.0) - (671.0) - (671.0)
Scrip dividend related share issue 7.5 (7.5) - - - 268.9 268.9 - 268.9 - 268.9
Issue of treasury shares - - - - - 17.8 17.8 - 17.8 - 17.8
Distributions to Hybrid equity holders - - - - - - - (73.7) (73.7) - (73.7)
Share buyback - - - - - (71.7) (71.7) - (71.7) - (71.7)
Credit in respect of employee share awards - - - - - 22.3 22.3 - 22.3 - 22.3
Investment in own shares - - - - - (14.1) (14.1) - (14.1) - (14.1)
At 31 March 2025 555.6 812.6 52.6 432.7 (8.6) 8,336.7 10,181.6 1,882.4 12,064.0 628.8 12,692.8
Consolidated Cash Flow Statement
for the year ended 31 March 2026
Note 2026 2025
£m £m
(restated*)
Operating profit 6 1,888.9 1,962.2
Less share of profit of joint ventures and associates (88.0) (89.9)
Operating profit before jointly controlled entities and associates 1,800.9 1,872.3
Pension service charges less contributions paid (9.3) (6.7)
Movement on operating derivatives 149.8 60.1
Depreciation, amortisation, write downs and impairments 979.0 1,057.1
Charge in respect of employee share awards 29.6 22.3
Profit on disposal of assets and businesses (7.3) (47.9)
(Credit)/charge in respect of provisions (8.8) 6.4
Credit in respect of financial guarantees (1.7) (1.9)
Release of deferred income (13.1) (14.1)
Cash generated from operations before working capital movements 2,919.1 2,947.6
Decrease/(increase) in inventories 17.9 (109.5)
(Increase)/decrease in receivables (0.1) 2.6
Increase/(decrease) in payables 474.8 (196.0)
Decrease in provisions (36.8) (23.7)
Cash generated from operations 3,374.9 2,621.0
Dividends received from investments 184.1 200.6
Interest paid (243.3) (260.1)
Interest received 180.8 155.9
Taxes paid (61.3) (240.6)
Net cash from operating activities 3,435.2 2,476.8
Purchase of property, plant and equipment 6 (4,147.0) (2,689.2)
Purchase of intangible assets 6 (296.6) (441.8)
Receipt of government grant income 6 41.7 55.7
Deferred income received 0.3 20.2
Proceeds from disposals 7.8 25.2
Purchases of businesses, joint ventures and subsidiaries (22.7) -
Loans and equity provided to joint ventures and associates (288.3) (408.3)
Loans and equity repaid by joint ventures 79.4 121.7
Decrease/(increase) in other investments 1.3 (1.9)
Net cash used in investing activities (4,624.1) (3,318.4)
Proceeds from issue of share capital, net of costs 14 1,995.8 17.8
Dividends paid to company's equity holders 10 (601.1) (402.1)
Share buybacks - (71.7)
Hybrid equity dividend payments 14 (72.9) (73.7)
Employee share awards share purchase 14 (25.4) (14.1)
Issue of Hybrid instruments 14 1,103.4 -
New borrowings 1,595.3 2,592.2
Repayment of borrowings (2,357.0) (1,162.2)
Settlement of cashflow hedges 3.2 10.0
Net cash from financing activities 1,641.3 896.2
Net increase in cash and cash equivalents 452.4 54.6
Cash and cash equivalents at the start of year 1,090.5 1,035.9
Net increase in cash and cash equivalents 452.4 54.6
Cash and cash equivalents at the end of year 1,542.9 1,090.5
* The comparative has been restated. See note 2.3.5.
The accompanying notes are an integral part of the financial information in
this announcement.
Notes to the Summary Financial Statements
for the year ended 31 March 2026
1. Financial Information
The financial information set out in this announcement does not constitute the
Group's consolidated financial statements for the years ended 31 March 2026 or
2025 but is derived from those accounts. Consolidated financial statements for
the year ended 31 March 2025 were delivered to the Registrar of Companies, and
those for the year ended 31 March 2026 will be delivered in due course. The
auditors have reported on the consolidated financial statements for each of
the years ended 31 March 2025 and 31 March 2026 and their reports were (i)
unqualified; (ii) did not include a reference to any matters to which the
auditors drew attention by way of emphasis without qualifying their report;
and (iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006. This preliminary announcement was authorised by the
Board on 27 May 2026.
2. Basis of preparation and presentation
2.1 Basis of preparation
The financial information set out in this announcement has been extracted from
the consolidated financial statements of SSE plc for the year ended 31 March
2026. These consolidated financial statements were prepared on the historical
cost basis except for certain gas inventory, derivative financial instruments,
financial instruments designated at fair value through profit or loss or other
comprehensive income on initial recognition, assets of the Group pension
schemes, all of which are measured at their fair value, and liabilities of the
Group's pension schemes which are measured using the projected unit credit
method, in conformity with the requirements of the Companies Act 2006 and in
accordance with UK-adopted International Accounting Standards ("IAS"). This
consolidated financial information has been prepared on the basis of
accounting policies consistent with those applied in the consolidated
financial statements for the year ended 31 March 2026 unless expressly stated
otherwise.
The Directors consider that the Group has adequate resources to continue in
operational existence for the period to 31 December 2027. The consolidated
financial statements are therefore prepared on a going concern basis with the
basis for that conclusion explained in the consolidated financial statements
at note A6.3.
The Summary Financial Statements are presented in pounds Sterling and all
values are rounded to the nearest million to one decimal place (£m), unless
otherwise stated.
2.2 Basis of presentation
The Group applies the use of adjusted accounting measures or Alternative
Performance Measures ("APMs") throughout these statements. These measures
enable the Directors to present the underlying performance of the Group and
its segments to the users of the statements in a consistent and meaningful
manner. The adjustments applied and certain terms such as Adjusted Operating
Profit, Adjusted Earnings Per Share, Adjusted EBITDA, Adjusted Investment and
Capital Expenditure, Adjusted Investment, Capital and Acquisition Expenditure
and Adjusted Net Debt and Hybrid Capital that are not defined under IFRS and
are explained in more detail in note 4.
2.3 Changes to presentation and prior year adjustments
The prior year comparatives at 31 March 2025 have been restated as follows:
2.3.1 Segments
In accordance with the requirements of IFRS 8 "Operating Segments" the Group
aligns its segmental disclosures with its internal reporting to the Group
Executive Committee (the Chief Operating Decision Maker). The reporting of
these operating segments is used to assess operating performance and to make
decisions on how to allocate capital. During the year to 31 March 2026,
reporting to the Group Executive Committee was amended so that SSE Thermal
includes Gas Storage; Energy Customer Solutions includes SSE Business Energy
and SSE Airtricity; and Corporate unallocated includes the loss on the Group's
joint venture investment in Neos Networks Limited. The segmental results
reported within these financial statements have been restated from 1 April
2024 (note 6), which had no impact on the consolidated results of the Group in
all periods presented.
2.3.2 Capital prepayments
Due to the long-term nature of capital projects within the Group, a greater
proportion of prepayments to suppliers to secure materials and production
capacity in advance are extending beyond 12 months. Under the Group's previous
accounting policy, all capital prepayments were shown as current assets.
However, the Group has elected to amend its accounting policy for disclosure
of capital prepayments to split prepayments between current and non-current
maturity. In accordance with IAS 8 "Accounting Policies, Changes in Accounting
Estimates and Errors" the balance sheet for the year ended 31 March 2025 has
been restated to present £247.8m of capital prepayments as non-current assets
(2026 equivalent: £372.0m). This change in policy had no impact on net
assets, the income statement, statement of cashflows or Alternative
Performance Measures of the Group at any reporting date.
2.3.3 Deferred income
A prior period adjustment has been made to restate deferred income split
between current and non-current maturity following incorrect classification at
31 March 2025. Deferred income due after more than one year has increased from
£1,247.9m to £1,437.6m (2026 equivalent: from £1,468.6m to £1,658.7m)
within non-current "Trade and other payables"; and current "Trade and other
payables" has decreased from £2,897.9m to £2,708.2m at 31 March 2025 (2026
equivalent: £3,477.0m to £3,286.9m). This adjustment has no impact on
retained earnings, net assets or the consolidated Alternative Performance
Measures of the Group, at any reporting date.
2. Basis of preparation and presentation (CONTINUED)
2.3.4 Alternative Performance Measures - adjustment for net debt and
cash attributable to non-controlling interests and related net finance costs
Where external funding is raised by SSE plc and used to fund investment in
subsidiaries whose non-controlling interest holders do not contribute capital
on a proportionate basis, such as SSEN Transmission, the Group has removed a
proportionate share of external debt and related net finance costs to better
represent the Group's underlying economic interest. This refinement represents
a change to the derivation of the adjusted debt measure applied in the 31
March 2026 financial statements and comparatives at 31 March 2025 have been
restated accordingly. This adjustment has no impact on reported net assets,
income statement or statement of cashflows of the Group, at any reporting
date. The restatement results in a decrease of Adjusted Net Debt and Hybrid
Capital by £120.0m from £10,186.7m to £10,066.7m, a decrease in Adjusted
Net Finance Costs from £281.0m to £274.7m, an increase in Adjusted Profit
Before Tax from £2,138.2m to £2,144.5m and an increase in Adjusted Earnings
per Share by 0.4 pence from 160.9 pence to 161.3 pence.
There have been no other changes to the Group's APMs in the current year.
2.3.5 Cash flow statement
A prior year restatement has been made to present interest paid of £260.1m
(2026 equivalent: £243.3m) and interest received of £155.9m (2026
equivalent: £180.8m) gross (previously presented net) in the cash flow
statement in accordance with the requirements of IAS 7 "Statement of Cash
Flows". This restatement had no impact on net cash from operating activities
in the cash flow statement, retained earnings, net assets or the consolidated
Alternative Performance Measures of the Group, at any reporting date.
3. New accounting policies and reporting changes
The basis of consolidation and principal accounting policies applied in the
preparation of these Summary Financial Statements are set out below and
included within A1 Accompanying Information to the Group's consolidated
financial statements.
3.1 New standards, amendments and interpretations effective or
adopted by the Group
During the year ended 31 March 2026, the Group adopted the Lack of
Exchangeability amendments to IAS 21 "The Effects of Changes in Foreign
Exchange Rates". Adoption of the amendment had no impact on the financial
statements.
There were no other standards, amendments to standards or interpretations
relevant to the Group's operations which were adopted during the year.
3.2 New standards, amendments and interpretations issued, but not
yet adopted by the Group
Following adoption of IFRS 9 on 1 April 2019, the Group elected to continue to
apply IAS 39 for hedge accounting. From 1 April 2026, the Group will adopt the
hedge accounting requirements of IFRS 9 to align its hedge accounting more
closely with the Group's risk management objectives. In the period to 31 March
2026, the Group assessed its existing IAS 39 hedging relationships and
concluded that those relationships continue to meet the IFRS 9 hedge
accounting criteria. These hedging relationships will be designated as
continuing hedges upon adoption of IFRS 9.
The Group will apply the prospective basis of adoption as permitted by IFRS 9,
whereby comparative information is not restated. The impact on the income
statement is immaterial.
The Group has elected to apply the cost of hedging approach, under which
certain elements of the fair value of hedging instruments (such as forward
points and currency basis spread) are recognised in other comprehensive income
rather than profit or loss. These amounts will be accumulated in a cost of
hedge equity reserve within equity and subsequently reclassified to profit or
loss in the period the hedged item affects profit or loss. On adoption, the
cost of hedge reserve will be £23.5m. There is no impact on total equity as a
result of this reclassification.
IFRS 18 "Presentation and Disclosure in Financial Statements" was issued in
April 2024 and will be effective for accounting periods beginning on or after
1 January 2027 (1 April 2027 for the Group). The standard replaces IAS 1
"Presentation of Financial Statements". The new standard does not amend the
principles of recognition and measurement and so will not impact the financial
results of the Group. However, it will impact the presentation of the
consolidated financial statements, in particular the consolidated income
statement.
The Group is continuing to assess the full impact of adoption of the standard.
However, it is expected that the consolidated income statement will be amended
to include the new subtotals prescribed in the standard, and the share of
profit recognised from equity accounted investments will be classified within
investing activities instead of operating activities. It is expected that
certain notes to the consolidated financial statements will also be amended to
comply with aggregation and disaggregation principles.
Amendments to IFRS 9 "Financial Instruments" and IFRS 7 "Financial
Instruments: Disclosures" in relation to the classification and measurement of
financial instruments have been issued. An additional amendment has also been
made to both standards in relation to contracts referencing nature-dependent
electricity. These amendments will be effective from 1 January 2026 (1 April
2026 for the Group). The amendments will not have a material impact on the
Group's consolidated financial statements.
4. Adjusted accounting measures
The Group applies the use of adjusted accounting measures or Alternative
Performance Measures ("APMs") throughout the Annual Report and Financial
Statements. These measures enable the Directors to present the underlying
performance of the Group and its segments to the users of the statements in a
consistent and meaningful manner. The adjustments applied and certain terms
such as Adjusted Operating Profit; Adjusted Earnings Per Share; Adjusted
EBITDA; Adjusted Investment and Capital Expenditure; Adjusted Investment,
Capital and Acquisition Expenditure; and Adjusted Net Debt and Hybrid Capital
are not defined under IFRS and are explained in more detail below. In
addition, the section Alternative Performance Measures at page 30 provides
further context and explanation of these terms.
4.1 Adjusted measures
The Directors assess the performance of the Group and its reportable segments
based on adjusted measures. These measures are used for internal performance
management and are believed to be appropriate for explaining underlying
performance to users of the accounts. These measures are also deemed to be the
most useful for ordinary shareholders of the Company and for other
stakeholders.
The performance of the reportable segments is reported based on adjusted
profit before interest and tax (Adjusted Operating Profit). This is reconciled
to reported profit before interest and tax by adding back exceptional items
and certain re-measurements (see note 4.2 below), depreciation expense on fair
value uplifts, the share of operating profit attributable to non-controlling
interests, adjustments to the Gas Production decommissioning provision and
after the removal of interest and taxation on profits from equity-accounted
joint ventures and associates.
The performance of the Group is reported based on Adjusted Profit Before Tax
which excludes exceptional items and certain re-measurements (see note 4.2
below), depreciation expense on fair value uplifts, the share of profit before
tax attributable to non-controlling interests, adjustments to the Gas
Production decommissioning provision and taxation on profits from
equity-accounted joint ventures and associates.
The Group also uses adjusted earnings before interest, taxation, depreciation
and amortisation ("Adjusted EBITDA") as an alternative operating performance
measure which acts as a management proxy for cash generated from operating
activities. This does not take into account the rights and obligations that
SSE has in relation to its equity-accounted joint ventures and associates.
This measure excludes exceptional items and certain re-measurements (see note
4.2 below), the depreciation charged on fair value uplifts, the share of
EBITDA attributable to non-controlling interests, adjustments to the Gas
Production decommissioning provision, depreciation and amortisation from
equity-accounted joint ventures and associates and interest and taxation on
profits from equity-accounted joint ventures and associates. For the purpose
of calculating the Net Debt to EBITDA metric, Adjusted EBITDA is further
adjusted to remove the proportion of adjusted EBITDA from equity-accounted
joint ventures relating to off-balance sheet debt (see note 6.3).
The Group's key performance measure is Adjusted Earnings Per Share ("Adjusted
EPS"), which is based on basic earnings per share before exceptional items and
certain re-measurements (see note 4.2 below), depreciation on fair value
uplifts, adjustments to the Gas Production decommissioning provision, the
removal of the interest on external debt invested in subsidiaries with a
non-controlling interest and after the removal of deferred taxation and
certain other taxation items. Deferred taxation is excluded from the Group's
Adjusted EPS because of the Group's significant ongoing capital investment
programme, which means that the deferred tax is unlikely to reverse. Adjusted
profit after tax is presented on a basis consistent with Adjusted EPS except
for the non-inclusion of payments to holders of hybrid equity.
The Summary Financial Statements also include an Adjusted Net Debt and Hybrid
Capital measure. This presents financing information on the basis used for
internal liquidity risk management. This measure excludes obligations due
under lease arrangements, the share of net debt attributable to
non-controlling interests (including debt held at SSE plc level, which is a
change in the current year), and includes cash held and posted as collateral
on commodity trading exchanges, and other deposits with a maturity of more
than three months. The measure represents the capital owed to investors,
lenders and equity holders other than the ordinary shareholders. As with
Adjusted Earnings Per Share, this measure is considered to be of relevance to
the ordinary shareholders of the Group as well as other stakeholders and
interested parties. The impact of the change to the definition of debt
attributable to non-controlling interest holders has been to increase the
adjustment for these items at 31 March 2025 from £817.9m to £937.9m and
therefore reduce the Adjusted Net Debt and Hybrid Capital by £120.0m from
£10,186.7m to £10,066.7m.
Finally, the financial statements include an Adjusted Investment and Capital
Expenditure and an Adjusted Investment, Capital and Acquisition Expenditure
measure. These metrics represent the capital invested by the Group in projects
that are anticipated to provide a return on investment over future years, or
which otherwise support Group operations and are consistent with internally
applied metrics. They therefore include capital additions to property, plant
and equipment and intangible assets and the Group's direct funding of joint
venture and associates' capital projects. The Group has considered it
appropriate to report these values both internally and externally in this
manner due to its use of equity-accounted investment vehicles to grow the
Group's asset base and to highlight where the Group is providing funding to
the vehicle through either loans or equity. The Group does not include project
funded capital additions in these metrics, nor does it include other capital
invested in joint ventures and associates. In addition, the Group excludes
additions to its property, plant and equipment funded by customer
contributions, lease additions and additions to intangible assets associated
with allowances and certificates. The Group also excludes the share of
investment and capital expenditure attributable to non-controlling interests
in controlled but not wholly owned subsidiaries. The Adjusted Investment,
Capital and Acquisition Expenditure measure also includes cash consideration
paid by the Group for business combinations which contribute to growth of the
Group's capital asset base and are considered to be relevant to the Group's
strategic objectives. As with Adjusted Earnings Per Share, these measures are
considered to be of relevance to management and to the ordinary shareholders
of the Group as well as to other stakeholders and interested parties.
Reconciliations from reported measures to adjusted measures along with further
description of the rationale for those adjustments are included in the
Alternative Performance Measures section at pages 30 to 36 before the Summary
Financial Statements.
4. ADJUSTED ACCOUNTING MEASURES (CONTINUED)
4.2 Exceptional items and certain re-measurements
Exceptional items are those charges or credits that are considered unusual by
nature and/or scale and of such significance that separate disclosure is
required for the financial statements to be properly understood. The trigger
points for recognition of items as exceptional items will tend to be
non-recurring, although exceptional charges (or credits) may impact the same
asset class or segment over time.
Examples of items that may be considered exceptional include material asset,
investment or business impairment charges; reversals of historic exceptional
impairments; business restructuring and reorganisation costs relating to
strategic change initiatives; significant realised gains or losses on
disposal; unrealised fair value adjustments on acquisition or disposals; and
provisions in relation to significant disputes and claims.
The Group operates a policy framework for establishing whether items should be
considered exceptional. This framework, which is reviewed annually, is based
on the materiality of the item, by reference to the Group's key performance
measure of Adjusted Earnings Per Share. This framework estimates that any
qualifying item greater than £40.0m (2025: £40.0m) will be considered
exceptional, with the exception of any strategic restructuring or
transformational activities or discontinued operations, which will be
considered on a case-by-case basis. The only further exception to this
threshold is for gains or losses on disposal, or divestment of early-stage
international or offshore wind farm development projects within SSE
Renewables, which are considered non-exceptional in line with the Group's
strategy to generate recurring gains from developer divestments. Where a
qualifying gain arises on a non-cash transaction, the gain is still treated as
exceptional.
Certain re-measurements are re-measurements arising on certain commodity,
interest rate and currency contracts which are accounted for as held for
trading or as fair value hedges in accordance with the Group's policy for such
financial instruments; re-measurements on stocks of commodities held at the
balance sheet date; or movements in fair valuation of contracts for difference
not designated as government grants. The amount recorded in the adjusted
results for these contracts is the amount settled in the year as disclosed in
note 16.
This excludes commodity contracts not treated as financial instruments under
IFRS 9 where the contracts are held for the Group's own use requirements. The
fair value of these contracts is not recorded and the value associated with
the contract is not recognised until the underlying commodity is delivered.
The impact of changes in corporation tax rates on deferred tax balances is
also included within certain re-measurements.
4.3 Other additional disclosures
As permitted by IAS 1 "Presentation of Financial Statements", the Group's
income statement discloses additional information in respect of joint ventures
and associates, exceptional items and certain re-measurements to aid
understanding of the Group's financial performance and to present results
clearly and consistently.
5. Accounting judgements and estimation uncertainty
In the process of applying the Group's accounting policies, management is
required to make judgements and estimates that will have a significant effect
on the amounts recognised in the financial statements. Changes in the
assumptions underlying the estimates could result in a significant impact to
the financial statements. The Group's key accounting judgement and estimation
areas are noted below, with the most significant and material financial
judgement areas that are specifically considered by the Audit Committee
highlighted separately.
The Group has made no changes to its material accounting judgements and
identified no new areas of estimation uncertainty during the year.
5.1 Significant financial judgements and estimation uncertainties
The preparation of the Group's Summary Financial Statements has specifically
considered the following significant financial judgements, some of which are
also areas of estimation uncertainty as noted below.
i) Impairment testing and valuation of certain non-current
assets - financial judgement and estimation uncertainty
The Group reviews the carrying amounts of its goodwill, other intangible
assets, specific property, plant and equipment and investment assets to
determine whether any impairments or reversal of impairments to the carrying
value of those assets requires to be recorded. Where an indicator of
impairment or impairment reversal exists, the recoverable amount of those
assets is reassessed by reference to either value in use or fair value less
cost to sell assessments. As well as its goodwill balances, the specific
assets under review in the year ended 31 March 2026 are intangible development
assets in Southern Europe and Japan; specific property, plant and equipment
assets related to Gas Storage; specific onshore Renewables assets; and the
Group's thermal power station at Great Island in Ireland. In addition, the
Group performed impairment reviews over the carrying value of its equity
investments in the Dogger Bank Wind Farm joint ventures; Neos Networks
Limited; and Triton Power Holdings Limited.
In conducting its reviews, the Group makes judgements and estimates
determining both the level of cash generating unit ("CGU") at which common
assets such as goodwill are assessed against, as well as the estimates and
assumptions behind the calculation of recoverable amount of the respective
assets or CGUs.
5. ACCOUNTING JUDGEMENTS AND ESTIMATION UNCERTAINTY
(continued)
5.1 Significant financial judgements and estimation uncertainties
(continued)
i) Impairment testing and valuation of certain non-current
assets - financial judgement and estimation uncertainty (continued)
Changes to the estimates and assumptions on factors such as regulation and
legislation changes (including relevant climate change related regulation),
power, gas, carbon and other commodity prices, volatility of gas prices, plant
running regimes and load factors, discount rates and other inputs could impact
the assessed recoverable value of assets and CGUs and consequently impact the
Group's income statement and balance sheet.
Further detail of the calculation basis and key assumptions used in the
impairment reviews, impairment test results and the sensitivity of these
assessments to key assumptions is disclosed at note 15 in the Group's
consolidated financial statements.
ii) Retirement benefit obligations - estimation uncertainty
The Group sets its assumptions in relation to the cost of providing
post-retirement benefits after consultation with qualified actuaries. While
these assumptions are believed to be appropriate, a change in these
assumptions would impact the level of the retirement benefit obligation
recorded and the cost to the Group of administering the schemes.
Further detail of the calculation basis and key assumptions used, the
resulting movements in obligations, and the sensitivity of key assumptions to
the obligation is disclosed at note 23 in the Group's consolidated financial
statements.
iii) Revenue recognition - Customers unbilled supply of
energy - estimation uncertainty
Revenue from energy supply activities undertaken by the Group's Energy
Customer Solutions businesses includes an estimate of the value of electricity
or gas supplied to customers between the date of the last meter reading and
the year end. This estimation comprises both billed revenue and unbilled
revenue and is calculated based on applying the tariffs and contract rates
applicable to customers against aggregated estimated customer consumption,
taking account of various factors including tariffs, consumption patterns,
customer mix, metering data, operational issues relating to the billings
process and externally notified aggregated volumes supplied to customers from
national settlements bodies.
This unbilled estimation is subject to an internal corroboration process which
compares calculated unbilled volumes to a theoretical "perfect billing"
benchmark measure of unbilled volumes (in GWh and millions of therms) derived
from historical consumption patterns and aggregated metering data used in
industry reconciliation processes. Unbilled revenue is compared to billings in
the period between the balance sheet date and the finalisation of the
financial statements which has provided evidence of post report date billings
and hence support to the accrual recognised.
Given the requirement of management to apply judgement, the estimated revenue
accrual remains a significant estimate made by management in preparing the
financial statements. A change in the assumptions underpinning the unbilled
calculation would have an impact on the amount of revenue recognised in any
given period.
iv) Valuation of other receivables - financial judgement and
estimation uncertainty
The Group holds a £100m loan note due from OVO Group Limited ("Ovo")
following the disposal of SSE Energy Services on 15 January 2020. The loan is
repayable in full by 31 December 2029, carries interest at 13.25% and is
presented cumulative of accrued interest payments, discounted at 13.25%. At 31
March 2026, the carrying value (net of expected credit loss provision of
£2.0m (2025: £1.8m)) is £220.0m (2025: £193.5m).
The Group has assessed recoverability of the loan note receivable and has
recognised a provision for expected credit loss in accordance with the
requirements of IFRS 9. The Group has taken appropriate steps to assess all
available information in respect of the recoverability of the loan note.
Procedures included reviewing recent financial information of Ovo and
discussions with Ovo management. While the carrying value is considered to be
appropriate, changes in economic conditions could lead to a change in the
expected credit loss incurred by the Group in future periods. On 11 May 2026,
subsequent to the balance sheet date, E.On announced the acquisition of Ovo's
Retail business, subject to regulatory approval. Completion of the acquisition
would result in the principal and accumulated interest becoming repayable in
full. While considered a non-adjusting post balance sheet event in terms of
classification, the Group has considered the transaction as part of its
recoverability assessment. No changes to the recoverable value were made
following announcement of the transaction.
v) Impact of climate change and the transition to net zero -
financial judgement and estimation uncertainty
Climate change and the transition to net zero have been considered in the
preparation of these financial statements. Where relevant, assumptions have
been applied that are consistent to a Paris-aligned 1.5(O)C net zero pathway
by 2050. The Group has a clearly articulated strategy to lead the UK's
transition to clean power and aligns its investment plans and business
activities to that strategy. These plans continue to be supported by the
Group's Sustainability Financing Framework, with ten green bonds outstanding
at 31 March 2026 and £2bn of export credit agency-backed facilities in place,
which are classified as "Green Loans" when drawn.
The nature and timing of future climate-related regulation, market
developments and technological change are inherently uncertain and could have
a material impact on the carrying values of the Group's assets and
liabilities. In preparing these Summary Financial Statements, the Group has
considered the potential impacts of climate change and the transition to net
zero in the application of accounting judgements and estimates, including the
following areas:
5. Accounting judgements and estimation uncertainty
(continued)
5.1 Significant financial judgements and estimation uncertainties
(continued)
v) Impact of climate change and the transition to net zero -
financial judgement and estimation uncertainty (continued)
Valuation of property, plant and equipment, and impairment assessment of
goodwill
The Group's view is that flexible generation capacity, including the Group's
fleet of CCGT power stations, will continue to play an essential role in
maintaining the security of supply during the transition to clean power,
supporting a system with increasing levels of intermittent renewable
generation. Accordingly, the Group has not shortened the useful economic lives
of its gas-fired-CCGTs fleet, reflecting their expected role as flexible
back-up capacity over the transition period.
A significant increase in renewable generation capacity in the Group's core
markets in the UK and Ireland could, in the longer term, result in periods of
oversupply of electricity, potentially placing downward pressure on achievable
power prices for renewable generation assets. The Group has not assessed that
this constitutes an indicator of impairment at 31 March 2026, as the Group's
baseline investment case models assume a centrally approved volume of new
build capacity consistent with system requirements and policy objectives over
the lives of the Group's existing assets. In accordance with IAS 36
"Impairment of Assets", the Group performs an annual impairment test of the
goodwill balances associated with its wind generation portfolio. As part of
this, sensitivities to key assumptions, including power prices, have been
considered. A sensitivity analysis assuming a 10% reduction in power prices,
which could arise in a market with significant new build renewable capacity,
indicated that significant headroom remains relative to the carrying value of
the Group's wind generating assets.
Valuation of decommissioning provisions
The Group recognises decommissioning provisions in respect of its Renewable
and Thermal generation assets and retained 60% share of the decommissioning
obligations relating to its disposed Gas Production business. The Group
considered the impacts of climate change and the transition to clean power in
estimating these provisions. Given the essential back-up role thermal
generation assets are expected to play during the transition period, no change
to accelerate decommissioning timelines has been assumed at 31 March 2026.
Similarly, the Group does not expect changes in weather patterns or increased
levels of new wind generation capacity to bring forward the decommissioning of
the Group's wind farm portfolio.
The discounted share of the Gas Production provision is £191.1m (2025:
£201.6m). At 31 March 2026, the impact of discounting of this retained
provision is £106.5m (2025: £80.8m), which is expected to be recognised
across the period to 31 March 2044. If the decommissioning activity was
accelerated due to changes in legislation, the costs of unwinding the
discounting of the provision would be recognised earlier.
Defined benefit scheme assets
The Group holds defined benefit pension scheme assets at 31 March 2026 which
could be impacted by climate-related risks. The trustees of the schemes have a
long-term investment strategy that seeks to reduce investment risk as and when
appropriate and takes into consideration the impact of climate-related risk.
Going Concern and viability statement
The implications of near-term climate-related risks have been considered in
the Group's Going Concern assessment and viability statement assessment.
5.2 Accounting judgements and estimation uncertainties - changes
from prior year
There were no changes to accounting judgements and estimation uncertainties
during the year.
5.3 Other areas of estimation uncertainty
Decommissioning costs
The calculation of the Group's decommissioning provisions involves the
estimation of quantum and timing of cash flows to settle the obligation. The
Group engages independent valuation experts to estimate the cost of
decommissioning its Renewable, Thermal and Gas Storage assets every three
years based on current technology and prices. The last independent assessment
for the majority of the Group's Renewable and Thermal generation assets was
performed in the prior year to 31 March 2025. The last formal assessment for
Gas Storage assets was performed in the year to 31 March 2026. Retained
decommissioning costs in relation to the disposed Gas Production business are
periodically agreed with the field operators and reflect the latest expected
economic production lives of the fields.
The dates for settlement of future decommissioning costs are uncertain,
particularly for the disposed Gas Production business where reassessment of
gas and liquids reserves and fluctuations in commodity prices can lengthen or
shorten the field life.
Further detail on the assumptions applied, including expected decommissioning
dates, and movement in decommissioning costs during the year are disclosed at
note 20 in the Group's consolidated financial statements.
6. Segmental information
IFRS 8 requires operating segments to be identified based on the Group's
internal reporting to its Chief Operating Decision Maker to assess operating
performance and to make decisions on how to allocate capital. The Group's
Chief Operating Decision Maker has been identified as the Group Executive
Committee. The changes to the Group's segments in the year are explained in
note 2.3.1 and reflect how operating performance is reported to the Group
Executive Committee for SSE Thermal (previously reported as SSE Thermal and
Gas Storage) and Energy Customer Solutions (previously reported as SSE
Business Energy and SSE Airtricity). Comparative information has been
re-presented to reflect the change to these segments. The Group's Corporate
unallocated segment is the Group's residual corporate central costs which are
not allocated to individual segments and includes the contribution from its
Enerveo business and the Group's joint venture investment in Neos Networks
Limited - neither of which are reported separately to the Group Executive
Committee.
The types of products and services from which each reportable segment derives
its revenues are:
Business Area Reported Segments Description
Transmission SSEN Transmission The economically regulated high voltage transmission of electricity from
generating plant in the North of Scotland to the distribution network or to
interconnected transmission networks. Revenue earned from constructing,
maintaining and renovating the transmission network is determined in
accordance with the regulatory licence, based on an Ofgem approved revenue
model and is recognised as charged to National Grid. The revenue earned from
other transmission services such as generator plant connections is recognised
in line with delivery of that service over the expected contractual period and
at the contracted rate. On 25 November 2022 the Group sold a 25.0%
non-controlling interest in this business to the Ontario Teachers' Pension
Plan.
Distribution SSEN Distribution The economically regulated lower voltage distribution of electricity to
customer premises in the North of Scotland and the South of England. Revenue
earned from delivery of electricity supply to customers is recognised based on
the volume of electricity distributed to those customers and the set customer
tariff. The revenue earned from other distribution services such as domestic
customer connections is recognised in line with delivery of that service over
the expected contractual period and at the contracted rate.
Renewables SSE Renewables The generation of electricity from renewable sources, such as onshore and
offshore wind farms and run of river and pumped storage hydro assets primarily
in the UK and Ireland, and the optimisation and trading of Battery Energy
Storage Systems capacity. This segment also includes the development of wind
assets in Japan and The Netherlands; solar assets in Poland; and the
development of wind, solar and battery opportunities in the UK and Southern
European markets including Spain, Italy, France and Greece. Revenue from
physical generation of electricity in Great Britain is sold to SSE Energy
Markets and in Ireland is sold to the Airtricity business in Energy Customer
Solutions and is recognised as generated, based on the contracted or market
price at the time of delivery. Revenue from national support schemes (such as
Renewable Obligation Certificates or the Capacity Market in Great Britain or
REFIT in Ireland) may either be recognised in line with electricity being
physically generated or over the contractual period, depending on the
underlying performance obligation.
SSE Thermal SSE Thermal The generation of electricity from flexible generation plants including CCGTs
in the UK and Ireland and the Group's interests in multifuel assets in the UK.
Revenue from physical generation of electricity in Great Britain and Ireland
is sold to SSE Energy Markets and is recognised as generated, based on the
contract or spot price at the time of delivery. Revenue from support schemes
(such as Capacity Market) and ancillary generation services may either be
recognised in line with electricity being physically generated or over the
contractual period, depending on the underlying performance obligation. The
operation of Gas Storage facilities in Great Britain, which utilise capacity
to optimise trading opportunity associated with the assets. Contribution
arising from trading activities is recognised as realised based on executed
trades or the withdrawal of gas from caverns.
Following the change in segmental reporting noted at note 2.3.1, SSE Thermal
comprises the Group's Thermal Generation and Gas Storage activities which were
previously reported separately.
6. Segmental information (continued)
Business Area Reported Segments Description
Energy Customer Solutions Energy Customer Solutions The supply of electricity and gas to business customers in Great Britain and
the supply of electricity, gas and energy related services to residential and
business customers in the Republic of Ireland and Northern Ireland. Activities
also include low carbon solutions activity; behind-the-meter funded solar and
battery solutions; equity investment in the Source EV joint venture; private
electric networks and heat network activities. Revenue earned from the supply
of energy is recognised in line with the volume delivered to the customer,
based on actual and estimated volumes, and reflecting the applicable customer
tariff after deductions or discounts and revenue earned from energy related
services may either be recognised over the expected contractual period or
following performance of the service, depending on the underlying performance
obligation.
Following the change in segmental reporting noted at note 2.3.1, Energy
Customer Solutions comprises the Group's SSE Business Energy and SSE
Airtricity activities which were previously reported separately.
SSE Energy Markets SSE Energy Markets The provision of a route to market for the Group's Renewable and Thermal
generation businesses and commodity procurement for the Group's energy supply
businesses and proprietary trading in line with the Group's stated hedging and
risk management policies. Revenue from physical sales of electricity, gas and
other commodities is recognised as supplied to either the national settlements
body or the customer, based on either the spot price at the time of delivery
or trade price where that trade is eligible for "own use" designation. The
sale of commodity optimisation trades is presented net in cost of sales
alongside purchase commodity optimisation trades.
The internal measure of profit reported to the Group Executive Committee is
Adjusted Profit Before Interest and Tax or Adjusted Operating Profit which is
arrived at before exceptional items, the impact of financial instruments
measured under IFRS 9, share of profits attributable to non-controlling
interests, adjustments to the Gas Production decommissioning provision, the
impact of depreciation on fair value uplifts and after the removal of taxation
and interest on profits from joint ventures and associates.
Analysis of revenue, operating profit, capital expenditure and earnings before
interest, taxation, depreciation and amortisation ("EBITDA") by segment is
provided on the following pages. Revenue and profit before taxation arise
primarily from operations within the UK and Ireland.
6. Segmental information (continued)
6.1 Revenue by segment
Reported revenue Inter-segment revenue (i) Segment revenue Reported revenue Inter- Segment revenue
segment revenue(i)
2026 2026 2026 2025 (restated(ii)) 2025 (restated(ii)) 2025 (restated(ii))
£m £m £m £m £m £m
SSEN Transmission 1,210.3 - 1,210.3 807.0 - 807.0
SSEN Distribution 1,116.5 38.6 1,155.1 1,513.6 66.9 1,580.5
SSE Renewables 412.0 1,167.6 1,579.6 354.9 1,243.8 1,598.7
SSE Thermal(ii) 669.8 4,417.9 5,087.7 650.6 4,556.7 5,207.3
Energy Customer Solutions (ii) 4,704.7 196.5 4,901.2 4,601.5 239.3 4,840.8
SSE Energy Markets:
Gross trading 18,732.1 5,729.1 24,461.2 16,542.4 6,074.6 22,617.0
Optimisation trades (16,797.0) (192.8) (16,989.8) (14,547.0) 36.8 (14,510.2)
SSE Energy Markets 1,935.1 5,536.3 7,471.4 1,995.4 6,111.4 8,106.8
Corporate unallocated 138.1 347.4 485.5 208.9 294.5 503.4
Total SSE Group 10,186.5 11,704.3 21,890.8 10,131.9 12,512.6 22,644.5
(i) Significant inter-segment revenue is derived from the sale of power
and stored gas from SSE Renewables and SSE Thermal to SSE Energy Markets;
use of system income received by SSEN Distribution from Energy Customer
Solutions; Energy Customer Solutions provides internal heat and light power
supplies to other Group companies; SSE Energy Markets provides power, gas and
other commodities to Energy Customer Solutions; and Corporate unallocated
provides corporate and infrastructure services to all segments as well as
third parties. All are provided at arm's length.
(ii) The comparative segment revenue has been restated to combine Gas
Storage (2025: £17.6m) and SSE Thermal (2025: £633.0m) into SSE Thermal
(2025: £650.6m) and SSE Business Energy (2025: £2,692.4m) and SSE Airtricity
(2025: £1,909.1m) into Energy Customer Solutions (2025: £4,601.5m).
Revenue by geographical location is as follows:
2026 2025
£m £m
UK 7,942.9 8,490.3
Ireland 2,237.8 1,641.6
Southern Europe 5.8 -
10,186.5 10,131.9
6. Segmental information (continued)
6.2 Operating profit/(loss) by segment
2026
Adjusted operating profit/ (loss) reported to the Board Depreciation expense on fair value uplifts Joint venture/ associate share of interest and tax Adjustments to Gas Production decommissioning provision Non-controlling interests Before exceptional items and certain re-measurements Exceptional items and certain re-measurements
Total
£m £m £m £m £m £m £m £m
SSEN Transmission 562.6 - - - 187.5 750.1 - 750.1
SSEN Distribution 335.3 - - - - 335.3 (38.4) 296.9
SSE Renewables 1,076.4 (19.6) (187.9) - (0.3) 868.6 (143.3) 725.3
SSE Thermal 195.4 (0.7) (19.2) - - 175.5 67.5 243.0
Energy Customer Solutions 136.9 - 0.7 - - 137.6 (1.4) 136.2
SSE Energy Markets 43.2 - - - - 43.2 (189.0) (145.8)
Corporate unallocated (113.2) - (0.5) 12.6 - (101.1) (15.7) (116.8)
Total SSE Group 2,236.6 (20.3) (206.9) 12.6 187.2 2,209.2 (320.3) 1,888.9
2025 (restated(i))
Adjusted operating profit/(loss) reported to the Board Depreciation expense on fair value uplifts Joint venture/ associate share of interest and tax Adjustments to Gas Production decommissioning provision Non-controlling interests Before exceptional items and certain re-measurements Exceptional items and certain re-measurements
Total
£m £m £m £m £m £m £m £m
SSEN Transmission 322.5 - - - 107.5 430.0 - 430.0
SSEN Distribution 736.0 - - - - 736.0 - 736.0
SSE Renewables 1,038.8 (19.7) (155.3) - (0.8) 863.0 (245.4) 617.6
SSE Thermal(i) 211.4 (0.4) (6.0) - - 205.0 (9.7) 195.3
Energy Customer Solutions(i) 192.1 - (0.9) - - 191.2 (2.0) 189.2
SSE Energy Markets 30.0 - - - - 30.0 (72.9) (42.9)
Corporate unallocated(i) (111.6) - (11.1) 17.9 - (104.8) (58.2) (163.0)
Total SSE Group 2,419.2 (20.1) (173.3) 17.9 106.7 2,350.4 (388.2) 1,962.2
(i) The comparative operating profit/(loss) by segment information
has been restated to aggregate the adjusted operating result of Gas Storage
(2025: £37.1m loss) and SSE Thermal (2025: £248.5m) into SSE Thermal (2025:
£211.4m), SSE Business Energy (2025: £32.7m) and SSE Airtricity (2025:
£159.4m) into Energy Customer Solutions (2025: £192.1m) and Neos Networks
(2025: £22.2m loss) into Corporate unallocated. The reported operating profit
by segment has been similarly restated to aggregate Gas Storage (2025: £45.5m
loss) and SSE Thermal (2025: £240.8m) into SSE Thermal (2025: £195.3m), SSE
Business Energy (2025: £32.2m) and SSE Airtricity (2025: £157.0m) into
Energy Customer Solutions (2025: £189.2m) and Neos Networks (2025: £33.3m
loss) into Corporate unallocated.
6. Segmental information (continued)
6.3 Earnings before interest, taxation, depreciation and
amortisation ('EBITDA')
2026
Adjusted operating profit/(loss) reported to the Board Depreciation/ impairment/ Joint venture/ associate share of depreciation and amortisation Release of deferred income Share of non-controlling interest depreciation and amortisation Adjusted EBITDA
amortisation before exceptional charges
(note 6.2) Depreciation expense on fair value uplifts
£m £m £m £m £m £m £m
SSEN Transmission 562.6 - 190.3 - (2.4) (47.6) 702.9
SSEN Distribution 335.3 - 236.1 - (9.3) - 562.1
SSE Renewables 1,076.4 (19.6) 216.1 137.0 (0.1) - 1,409.8
SSE Thermal 195.4 (0.7) 89.0 34.8 - - 318.5
Energy Customer Solutions 136.9 - 39.1 1.2 (0.8) - 176.4
SSE Energy Markets 43.2 - 9.2 - - - 52.4
Corporate unallocated (113.2) - 99.5 - (0.5) - (14.2)
Total SSE Group 2,236.6 (20.3) 879.3 173.0 (13.1) (47.6) 3,207.9
Note that the Group's Net Debt to EBITDA metric is derived after removing the
proportionate EBITDA from Beatrice, Seagreen and Dogger Bank A debt-financed
joint ventures. This adjustment is £157.4m (2025: £153.3m) resulting in
EBITDA for inclusion in the Net Debt to EBITDA metric of £3,050.5m (2025:
£3,196.0m).
For 31 March 2026 the £879.3m (2025: £776.1m) combined depreciation,
impairment and amortisation charges included non-exceptional impairments net
of reversals totalling £12.7m (2025: £20.7m).
2025 (restated(i))
Adjusted operating profit/(loss) reported to the Board Depreciation/ impairment/ Joint venture/ associate share of depreciation and amortisation Release of deferred income Share of non-controlling interest depreciation and amortisation Adjusted EBITDA
amortisation before exceptional charges
(note 6.2) Depreciation expense on fair value uplifts
£m £m £m £m £m £m £m
SSEN Transmission 322.5 - 151.1 - (2.3) (37.8) 433.5
SSEN Distribution 736.0 - 214.2 - (10.8) - 939.4
SSE Renewables 1,038.8 (19.7) 202.7 132.5 - - 1,354.3
SSE Thermal(i) 211.4 (0.4) 90.4 42.9 - - 344.3
Energy Customer Solutions(i) 192.1 - 32.2 1.3 (0.5) - 225.1
SSE Energy Markets 30.0 - 6.8 - - - 36.8
Corporate unallocated(i) (111.6) - 78.7 49.3 (0.5) - 15.9
Total SSE Group 2,419.2 (20.1) 776.1 226.0 (14.1) (37.8) 3,349.3
(i) The comparatives have been restated to combine the adjusted
EBITDA of Gas Storage (2025: £36.3m loss) and SSE Thermal (2025: £380.6m)
into SSE Thermal (2025: £344.3m); SSE Business Energy (2025: £58.2m) and SSE
Airtricity (2025: £166.9m) into Energy Customers Solutions (2025: £225.1m);
and Neos Networks (2025: £27.1m) and Corporate unallocated (2025: £11.2m
(loss)) into Corporate unallocated (2025: £15.9m).
6. Segmental information (continued)
6.4 Capital and investment expenditure by segment
Capital additions to intangible assets Capital additions to property, plant and equipment Capital additions to intangible assets Capital additions to property, plant and equipment
2026 2026 2025 2025
£m £m £m £m
(restated(i)) (restated(i))
SSEN Transmission 31.1 2,272.9 20.3 1,253.8
SSEN Distribution 39.8 1,012.3 35.8 743.9
SSE Renewables 165.0 408.0 291.3 545.8
SSE Thermal(i) 43.7 186.0 56.9 139.3
Energy Customer Solutions(i) 27.9 11.5 36.0 33.5
SSE Energy Markets 484.5 - 585.1 -
Corporate unallocated 5.2 92.8 20.1 75.2
Total SSE Group 797.2 3,983.5 1,045.5 2,791.5
Increase in prepayments related to capital expenditure - 468.1 - 254.9
Government funded additions - 41.7 - 55.7
Decrease/(increase) in trade payables related to capital expenditure - 3.8 - (122.8)
Customer or third party funded additions - (215.7) - (163.4)
Lease asset additions - (93.3) - (126.7)
Less non-cash items:
Allowances and certificates (235.9) - (335.7) -
Property, plant and equipment - (41.1)
Net cash outflow 561.3 4,147.0 709.8 2,689.2
(i) The comparatives have been restated to aggregate capital
additions to intangible assets of SSE Business Energy (2025: £28.9m) and SSE
Airtricity (2025: £7.1m) into Energy Customer Solutions (2025: £36.0m) and
capital additions to property, plant and equipment of Gas Storage (2025:
£0.7m) and SSE Thermal (2025: £138.6m) into SSE Thermal (2025: £139.3m).
Capital additions do not include assets acquired in acquisitions, assets
acquired under leases or assets constructed that the Group were reimbursed by
way of a government grant. During the year the Group received reimbursements
totalling £41.7m (2025: £55.7m) from government bodies relating to
construction of a temporary generation plant at the Group's Tarbert site,
which have been presented separately on the cashflow statement. Capital
additions to intangible assets includes the cash purchase of emissions
allowances and certificates (2026: £264.7m; 2025: £268.0m). These purchases
are presented in the cash flow statement within operating activities as they
relate to the obligation to surrender the allowances and certificates in line
with operating volumes of emissions. Other non-cash additions comprise
self-generated renewable obligation certificates and asset additions from the
acquisition of a further 50% equity interest in Lenalea Wind Farm DAC, since
the acquisition is shown separately in the cashflow statement.
6. Segmental information (continued)
6.4 Capital and investment expenditure by segment (continued)
2026
Capital additions to intangible assets Capital additions to property, plant and equipment Capital investment relating to joint ventures and associates (i) Allowances and certificates Customer funded additions Lease asset additions (iv) Share of non-controlling interests Adjusted
£m £m £m (ii) (iii) £m (v) Investment and Capital Expenditure
£m £m £m £m
SSEN Transmission 31.1 2,272.9 - - - (13.9) (572.5) 1,717.6
SSEN Distribution 39.8 1,012.3 - - (199.9) (0.4) - 851.8
SSE Renewables 165.0 408.0 183.5 - - (15.5) (2.0) 739.0
SSE Thermal 43.7 186.0 - (16.7) (15.3) (0.2) - 197.5
Energy Customer Solutions 27.9 11.5 5.5 (9.6) (0.5) - - 34.8
SSE Energy Markets 484.5 - - (474.3) - - - 10.2
Corporate unallocated 5.2 92.8 - - - (63.3) - 34.7
Total SSE Group 797.2 3,983.5 189.0 (500.6) (215.7) (93.3) (574.5) 3,585.6
(i) Represents equity or debt funding provided to joint ventures or
associates in relation to capital expenditure projects.
(ii) Allowances and certificates consist of purchased carbon emissions
allowances and generated or purchased renewable obligations certificates and
are not included in the Group's Capital Expenditure and Investment alternative
performance measure.
(iii) Represents removal of additions to electricity and other networks
funded by customer or third party contributions.
(iv) Represents removal of additions in respect of right of use assets
recognised on the commencement date of a lease arrangement.
(v) Represents the share of capital additions attributable to
non-controlling interests.
6. Segmental information (continued)
6.4 Capital and investment expenditure by segment (continued)
2025 (restated(i))
Capital additions to intangible assets Capital additions to property, plant and equipment Capital investment relating to joint ventures and associates Allowances and certificates Customer funded additions Lease asset additions Share of non-controlling interests Adjusted
£m £m £m £m £m £m £m Investment and Capital Expenditure
£m
SSEN Transmission 20.3 1,253.8 - - - (2.8) (317.8) 953.5
SSEN Distribution 35.8 743.9 - - (143.3) (0.6) - 635.8
SSE Renewables 291.3 545.8 227.8 - - (60.1) (3.0) 1,001.8
SSE Thermal(i) 56.9 139.3 31.3 (27.3) (16.2) (0.2) - 183.8
Energy Customer Solutions(i) 36.0 33.5 15.1 - (3.9) (0.7) - 80.0
SSE Energy Markets 585.1 - - (576.4) - - - 8.7
Corporate unallocated 20.1 75.2 13.8 - - (62.3) - 46.8
Total SSE Group 1,045.5 2,791.5 288.0 (603.7) (163.4) (126.7) (320.8) 2,910.4
(i) The comparatives have been restated, as noted above for the
capital additions to intangible assets and capital additions to property plant
and equipment.
7. Exceptional items and certain re-measurements
2026 2025
£m £m
Exceptional items
Asset impairments and reversals (99.7) (293.6)
Provisions for restructuring and other liabilities (62.9) (16.1)
Net gains on disposals of businesses and other assets - 0.3
Total exceptional items (162.6) (309.4)
Certain re-measurements
Movement on operating derivatives (note 16) (152.0) (49.0)
Movement in fair value of commodity stocks 10.4 (8.4)
Movement on financing derivatives (note 16) 17.9 12.8
Share of movement on derivatives in jointly controlled entities (net of tax) (16.1) (21.1)
Total certain re-measurements (139.8) (65.7)
Exceptional items and certain re-measurements before taxation (302.4) (375.1)
Taxation
Taxation on other exceptional items 39.6 29.7
Taxation on certain re-measurements 16.9 4.0
Total taxation on exceptional items and certain re-measurements 56.5 33.7
Total exceptional items and certain re-measurements after taxation (245.9) (341.4)
Exceptional items and certain re-measurements are disclosed across the
following categories within the income statement:
2026 2025
£m £m
Cost of sales:
Movement on operating derivatives (note 16) (152.0) (49.0)
Movement in fair value of commodity stocks 10.4 (8.4)
(141.6) (57.4)
Operating costs:
Asset impairments and reversals (99.7) (293.6)
Exceptional restructuring provisions and other liabilities (62.9) (16.1)
(162.6) (309.7)
Joint ventures and associates:
Share of movement on derivatives in jointly controlled entities (net of tax) (16.1) (21.1)
Operating loss (320.3) (388.2)
Finance income
Movement on financing derivatives (note 16) 17.9 12.8
Interest income on deferred consideration receipt - 0.3
17.9 13.1
Loss before tax (302.4) (375.1)
7.1 Exceptional items
7.1.1 Exceptional items in the year ended 31 March 2026
In the year to 31 March 2026, the Group recognised a pre-tax exceptional
charge of £162.6m (2025: £309.4m), which is primarily due to exceptional
pre-tax impairment charges totalling £155.8m relating the Group's onshore
windfarms at Strathy South (£96.0m) and Aberarder (£59.8m); and exceptional
Group restructuring costs of £84.7m (including £21.8m of asset impairments).
These exceptional costs are partially offset by exceptional pre-tax impairment
reversals totalling £77.9m relating to the Group's gas storage assets
(£48.5m) and joint venture investment in Triton Power Holdings Limited
("Triton") (£29.4m).
7. EXCEPTIONAL ITEMS AND CERTAIN RE-MEASUREMENTS (CONTINUED)
7.1 Exceptional items (continued)
7.1.1 Exceptional items in the year ended 31 March 2026 (continued)
The net exceptional (charges)/credits recognised can be summarised as follows:
Intangible assets Property, plant and equipment Joint venture investments Other assets/ Net (charges) and credits
£m £m £m (liabilities) £m
£m
Renewables - impairment charges (i) - (155.8) - - (155.8)
Gas Storage - impairment reversal (ii) - 48.5 - - 48.5
Triton Power 50% joint venture - investment impairment reversal (iii) - - 29.4 - 29.4
Restructuring costs (iv) (4.2) - (17.6) (62.9) (84.7)
Total exceptional items (4.2) (107.3) 11.8 (62.9) (162.6)
i) Renewables - impairment charges
The Group performed formal impairment reviews over the carrying value of its
mid-construction onshore windfarm developments at Strathy South and Aberarder
following grid connection delays notified during the year. As a result of
these assessments, the Group recognised exceptional impairment charges of
£96.0m to Strathy South and £59.8m to the carrying value of Aberarder.
ii) Gas Storage - impairment reversal
At 31 March 2026, the Group performed a formal impairment review of the
carrying value of its operational Gas Storage assets due to global commodity
market volatility in the period prior to the Group's balance sheet date. As a
result of the assessment, the Group recognised an exceptional impairment
reversal of £48.5m to the carrying value of the Group's Gas Storage assets.
iii) Triton Power 50% joint venture - investment impairment reversal
The Group recognised an impairment reversal of £29.4m against the carrying
value of the Group's investment in Triton Power Holdings Limited, following
updates to projected running schedules and future market price assumptions.
iv) Restructuring costs
During the year the Group continued its Group Operating Model and Efficiency
Review and related restructuring programmes, resulting in the recognition of
exceptional restructuring costs totalling £84.7m. Costs recognised during the
year included the impairment of £21.8m of standalone hydrogen production
development projects and joint venture investments in SSE Thermal; consultancy
fees of £22.0m; £20.9m of IT customisation and integration charges and
£20.0m of redundancy costs. While the wider Group Operating Model and
Efficiency Review is now largely complete, the Group will continue to incur
exceptional restructuring costs related to the ongoing transformation of SSEN
Distribution, which is expected to continue into the 31 March 2028 financial
year.
7.1.2 Exceptional items in the year ended 31 March 2025
i) Southern Europe goodwill and development assets - impairment charge
The Group recognised a pre-tax impairment charge of £249.5m against the
carrying value of its Southern Europe goodwill and intangible assets, offset
by the release of a deferred tax liability of £23.2m.
ii) Restructuring costs
Costs of £46.7m in relation to the Group Operating Model and Efficiency
Review were recognised during the year ended 31 March 2025. The costs included
the impairment of £19.8m of goodwill associated with The Energy Solutions
Group Limited; the impairment of £11.1m of stranded IT assets; and £13.8m of
redundancy costs.
In addition, the Group recognised further exceptional charges of £13.5m in
relation to the ongoing disposal of its non-core Enerveo subsidiary.
iii) Other credits
The Group recognised a final exceptional credit of £0.3m relating to the
unwind of discounting on deferred consideration recognised on the part
disposal of SSE Slough Multifuel Limited in the year ending 31 March 2021.
7.1.3 Taxation
The Group has separately recognised the tax effect of the exceptional items
summarised above.
7. EXCEPTIONAL ITEMS AND CERTAIN RE-MEASUREMENTS (CONTINUED)
7.2 Certain re-measurements
The Group, through its SSE Energy Markets business, enters into forward
commodity purchase (and sales) contracts to
meet the future demand requirements of its Energy Customer Solutions
businesses,
optimise the value of its SSE Renewables and SSE Thermal power generation
assets, or
conduct trading subject to the value at risk limits set out by the Energy
Markets Risk Committee.
Certain of these contracts (predominately power, gas and other commodity
purchase contracts) are determined to be derivative financial instruments
under IFRS 9 "Financial Instruments" and therefore are required to be recorded
at their fair value. Conversely, commodity contracts that are not financial
instruments under IFRS 9 (predominately electricity sales contracts) are
accounted for as "own use" contracts and are not recorded at fair value.
Inventory held by the SSE Thermal business for optimisation and trading
purposes is measured at fair value, with changes in value recognised within
"certain re-measurements". In addition, the mark-to-market valuation movements
on the Group's CfDs entered into by SSE Renewables that are not designated as
government grants, and which are measured as Level 3 fair value financial
instruments, are also included within "certain re-measurements".
Changes in the fair value of those commodity contracts designated as financial
instruments and trading inventory are therefore reflected in the income
statement. The Group recognises the change in the fair value of these forward
contracts and trading inventory separately as "certain re-measurements", as
the Group does not believe this mark-to-market movement is relevant to the
underlying performance of its businesses.
At 31 March 2026, changes in commodity prices and in SSE's contractual
positions have resulted in a net mark-to-market re-measurement on commodity
contracts designated as financial instruments, contracts for difference
contracts and trading inventory of £141.6m (loss) (2025: £57.4m (loss)). The
net IFRS 9 position on operating derivatives at 31 March 2026 is a liability
of £158.9m (2025: £3.9m liability).
The mark-to-market loss in the year has resulted in a deferred tax credit of
£18.5m (2025: £9.3m credit), which has been reported separately as part of
certain re-measurements. In addition, the Group has recognised gains of
£17.9m (2025: £12.8m gain) on the re-measurement of certain interest rate
and foreign exchange contracts through the income statement.
The following mark-to-market losses/gains were recorded in the statement of
other comprehensive income:
£14.2m of losses (2025: £48.1m gain) on the re-measurement of cash flow
hedge accounted contracts, and
£35.0m of losses (2025: £16.7m loss) on the equity share of the
re-measurement of cash flow hedge accounted contracts in joint ventures
The re-measurements arising from IFRS 9 together with the associated deferred
tax are disclosed separately to aid understanding of the underlying
performance of the Group.
8. Finance income and costs
2026 2025
Before exceptional items and certain re-measurements Exceptional items and certain re-measurements Total Before exceptional items and certain re-measurements Exceptional items and certain re-measurements Total
£m £m £m £m £m £m
Finance income:
Interest income from short term deposits 46.9 - 46.9 24.8 - 24.8
Interest on pension scheme assets (i) 29.4 - 29.4 20.7 - 20.7
Other interest receivable:
Joint ventures and associates 119.4 - 119.4 118.8 - 118.8
Other receivable 45.2 - 45.2 30.5 0.3 30.8
164.6 - 164.6 149.3 0.3 149.6
Total finance income 240.9 - 240.9 194.8 0.3 195.1
Finance costs:
Bank loans and overdrafts (69.7) - (69.7) (61.1) - (61.1)
Other loans and charges (362.7) - (362.7) (309.9) - (309.9)
Notional interest arising on discounted provisions (34.3) - (34.3) (27.2) - (27.2)
Foreign exchange translation of monetary assets and liabilities (4.4) - (4.4) (0.2) - (0.2)
Lease charges (24.1) - (24.1) (26.9) - (26.9)
Less: interest capitalised (ii) 184.8 - 184.8 106.1 - 106.1
Total finance costs (310.4) - (310.4) (319.2) - (319.2)
Changes in fair value of financing derivative assets or liabilities at fair - 17.9 17.9 - 12.8 12.8
value through profit or loss
Net finance costs (69.5) 17.9 (51.6) (124.4) 13.1 (111.3)
Presented as:
Finance income 240.9 17.9 258.8 194.8 13.1 207.9
Finance costs (310.4) - (310.4) (319.2) - (319.2)
Net finance costs (69.5) 17.9 (51.6) (124.4) 13.1 (111.3)
(i) The interest income on net pension assets for the year ended 31
March 2026 of £29.4m (2025: £20.7m) represents the interest earned on the
Group's net retirement benefits assets.
(ii) The capitalisation rate applied in determining the amount of
borrowing costs to capitalise in the year was 4.29% (2025: 4.12%).
Adjusted Net Finance Costs are arrived at after the following adjustments:
2026 2025
£m £m
(restated*)
Net finance costs (51.6) (111.3)
(Add)/less:
Share of interest from joint ventures and associates (155.7) (164.3)
Movement on financing derivatives (note 16) (17.9) (12.8)
Exceptional item - (0.3)
Share of net finance cost attributable to non-controlling interests 13.4 14.0
Adjusted Net Finance Costs (211.8) (274.7)
Notional interest arising on discounted provisions 34.3 27.2
Lease charges 24.1 26.9
Hybrid coupon payment (note 14) (72.9) (73.7)
Finance costs incurred by non-controlled interests on debt instruments (8.0) (6.3)
provided by SSE plc
Adjusted Net Finance Costs for interest cover calculations (234.3) (300.6)
*The comparatives have been restated. See note 2.3.4.
9. Taxation
Analysis of charge recognised in the income statement
2026 2025
Before exceptional items and certain re-measure-ments Exceptional items and certain re-measure-ments Total Before exceptional items and certain re-measure-ments Exceptional items and certain re-measure-ments Total
£m £m £m £m £m £m
Current tax
Corporation tax 141.8 (33.2) 108.6 247.3 (5.3) 242.0
Adjustments in respect of previous years (11.2) - (11.2) (8.3) - (8.3)
Total current tax 130.6 (33.2) 97.4 239.0 (5.3) 233.7
Deferred tax
Current year 345.3 (23.3) 322.0 293.6 (28.4) 265.2
Adjustments in respect of previous years 6.3 - 6.3 19.1 - 19.1
Total deferred tax 351.6 (23.3) 328.3 312.7 (28.4) 284.3
Total taxation charge/(credit) 482.2 (56.5) 425.7 551.7 (33.7) 518.0
Adjusted Current Tax Charge
The Adjusted Current Tax Charge and the adjusted effective rate of tax, which
are presented in order to best represent underlying performance by making
similar adjustments to the adjusted profit before tax measure, are arrived at
after the following adjustments:
2026 2026 2025 2025
£m % £m %
(restated*)
Group tax charge and effective rate 425.7 24.3 518.0 29.4
Add: reported deferred tax charge and effective rate (328.3) (18.8) (284.3) (16.1)
Reported current tax charge and effective rate 97.4 5.5 233.7 13.3
Effect of adjusting items (0.7) (2.4)
Reported current tax charge and effective rate on adjusted basis 97.4 4.8 233.7 10.9
Add:
Share of current tax from joint ventures and associates 48.6 2.5 45.1 2.2
Current tax credit on exceptional items 33.2 1.6 5.3 0.2
Share of current tax attributable to non-controlling interests 14.2 0.7 13.8 0.6
Adjusted Current Tax Charge and effective rate 193.4 9.6 297.9 13.9
*The comparatives have been restated. See note 2.3.4.
10. Dividends
10.1 Ordinary dividends
2026 Total Settled via scrip Pence per ordinary share 2025 Total Settled via scrip Pence per ordinary share
£m £m £m £m
Interim - year ended 31 March 2026 258.3 107.7 21.4 - - -
Final - year ended 31 March 2025 475.8 25.3 43.0 - - -
Interim - year ended 31 March 2025 - - - 233.7 43.4 21.2
Final - year ended 31 March 2024 - - - 437.3 225.5 40.0
734.1 133.0 671.0 268.9
The final dividend of 43.0p per ordinary share declared in respect of the
financial year ended 31 March 2025 (2024: 40.0p) was approved at the Annual
General Meeting on 17 July 2025 and was paid to shareholders on 18 September
2025. Shareholders were able to elect to receive ordinary shares credited as
fully paid instead of the cash dividend under the terms of the Company's scrip
dividend scheme.
The scrip dividend scheme allows investors the option to receive ordinary
shares for every cash dividend entitlement where offered. Where the scrip
take-up exceeds 25% of the full year dividend in any given year, the Group's
policy is to repurchase shares to reduce the dilutive effects to a maximum of
25%. This policy is expected to be extended for the years to 31 March 2030
subject to shareholder approval at the Group's 2026 Annual General Meeting.
The scrip dividend take-up for the prior financial year was 9.7%, which was
below the 25.0% required by the share buyback programme, therefore no share
buybacks occurred during the current year. In the year ended 31 March 2025
3.8m shares were repurchased for total consideration of £71.7m (including
stamp duty and commission).
An interim dividend of 21.4p per ordinary share (2025: 21.2p) was declared and
paid on 30 January 2026 to those shareholders on the SSE plc share register on
5 December 2025. Shareholders were able to elect to receive ordinary shares
credited as fully paid instead of the interim cash dividend under the terms of
the Company's scrip dividend scheme.
10. Dividends (CONTINUED)
10.1 Ordinary dividends (continued)
The proposed final dividend of 47.3p per ordinary share based on the number of
issued ordinary shares at 31 March 2026 is subject to approval by shareholders
at the Annual General Meeting and has not been included as a liability in
these Summary Financial Statements. Based on shares in issue at 31 March 2026,
this would equate to a final dividend of £574.9m.
11. Earnings per Share
11.1 Basic earnings per share
The calculation of basic earnings per ordinary share at 31 March 2026 is based
on the net profit attributable to ordinary shareholders and a weighted average
number of ordinary shares outstanding during the year ended 31 March 2026.
11.2 Adjusted Earnings Per Share
Adjusted Earnings Per Share has been calculated by excluding the charge for
deferred tax, retained Gas Production decommissioning costs, the depreciation
charged on fair value uplifts, the share of profit attributable to
non-controlling interests and the impact of exceptional items and certain
re-measurements (note 7).
2026 2026 2025 2025
Earnings Earnings per share Earnings Earnings per share
£m pence £m pence
(restated*) (restated*)
Basic earnings attributable to ordinary shareholders used to calculate 1,208.7 105.5 1,189.4 108.2
Adjusted EPS
Exceptional items and certain re-measurements attributable to ordinary 247.8 21.6 341.4 31.1
shareholders
Basic excluding exceptional items and certain re-measurements 1,456.5 127.1 1,530.8 139.3
Adjusted for:
Decommissioning Gas Production (12.6) (1.1) (17.9) (1.6)
Depreciation charge on fair value uplifts 20.3 1.8 20.1 1.8
Deferred tax (note 9) 351.6 30.7 312.7 28.4
Deferred tax from share of joint ventures and associates 2.6 0.2 (36.1) (3.2)
Deferred tax on non-controlling interest (64.5) (5.7) (41.5) (3.8)
Interest attributable to non-controlling interest holders, net of tax 4.6 0.5 4.8 0.4
Adjusted 1,758.5 153.5 1,772.9 161.3
Basic 1,208.7 105.5 1,189.4 108.2
Dilutive effect of outstanding share options - (0.1) - (0.1)
Diluted 1,208.7 105.4 1,189.4 108.1
The weighted average number of shares used in each calculation is as follows:
31 March 2026 31 March 2025
Number of shares Number of shares
(millions) (millions)
For basic and Adjusted Earnings Per Share 1,145.4 1,099.2
Effect of exercise of share options 1.8 1.1
For diluted earnings per share 1,147.2 1,100.3
11.3 Dividend cover
The Group's adjusted dividend cover metric is calculated by comparing Adjusted
Earnings Per Share to the projected dividend per share payable to ordinary
shareholders.
2026 2026 2026 2025 2025 2025
Earnings per share Dividend per share Dividend Cover Earnings per share Dividend per share Dividend cover
(pence) (pence) (times) (pence) (pence) (times)
Reported earnings per share 105.5 68.7 1.54 108.2 64.2 1.69
Adjusted Earnings Per Share (restated*) 153.5 68.7 2.23 161.3 64.2 2.51
*The comparatives have been restated see note 2.3.4.
12. Acquisitions AND disposals
12.1 Acquisitions
12.1.1 Current year acquisitions
There have been no significant acquisitions in the current year.
12.1.2 Prior year acquisitions
During the year ended 31 March 2025, the Group made small asset acquisitions
(of special purpose vehicles as opposed to businesses) for cash consideration
of £17.1m.
12.2 Disposals
12.2.1 Current and prior year disposals
There have been no significant disposals in the current and prior year.
12.3 Held for sale assets and liabilities
During the year ended 31 March 2026, the Group commenced a process to divest
its renewable platform in France and a solar development asset in Greece. The
Group has assessed that these divestments meet the held for sale IFRS 5
definition and accordingly the below associated assets and liabilities are
presented as held for sale:
31 March 2026
£m
Property, plant and equipment 34.1
Intangible assets 8.3
Inventories 0.4
Trade and other receivables 3.5
Total assets 46.3
Trade and other payables (0.2)
Provisions (1.3)
Loans and other borrowings (1.5)
Total liabilities (3.0)
Net assets 43.3
The aggregate pre-tax profit contribution of the held for sale businesses in
the year to 31 March 2026 was a profit of £1.0m. There are no accumulated
gains or losses recognised in other comprehensive income related to assets and
liabilities held for sale.
13. Sources of finance
13.1 Capital management
The Group's objective is to maintain a strong balance sheet and credit rating
to support continued access to capital markets and fund its investment
programme, underpinning delivery of the Group's strategy and long term value
creation. The Group monitors its capital structure using key financial metrics
including, Adjusted Net Debt and Hybrid Capital together with credit metrics
consistent with those used by external rating agencies.
At 31 March 2026, the Group's long term credit rating was BBB+ stable outlook
for Standard and Poor's; Baa1 stable outlook for Moody's; and BBB+ stable
outlook with Fitch, which is now provided on a solicited basis.
The maintenance of a medium-term corporate model is a key control in
monitoring the development of the Group's capital structure and enables
detailed scenario and sensitivity analysis. Key ratios derived from this
analysis underpin regular reporting to the Board and include the ratios used
by the rating agencies in assessing the Group's credit ratings.
The Group's debt requirements are principally met through bond issuances in
Sterling and Euros, private placements and medium-term bank loans. Details of
debt issued by the Group and maturity profile are included in note 21.3 to
the Group's consolidated financial statements. The Group's capital structure
is supported by a range of financial instruments, including bonds, private
placements, hybrid capital, equity issuances and short-term funding through
its commercial paper programme. Under SSE plc's articles of association, the
borrowings of the Company are limited so as to ensure that the aggregate
amount of all borrowings by the Group outstanding at any time is not more than
three times the capital and reserves of the Group. SSE's Adjusted Net Debt and
Hybrid Capital remained stable at £10.1bn at 31 March 2026 (2025: £10.1bn
(restated - see note 2.3.4)).
The Group seeks to balance returns to shareholders through dividends and
long-term capital investment for growth, while maintaining a disciplined
approach to capital management within the prevailing economic environment.
On 14 November 2025 the Group issued 97.9m ordinary shares at a placement
price of £20.50 per share, resulting in net proceeds of £1,978.4m (see note
14.1).
13. Sources of finance (CONTINUED)
13.1 Capital management (continued)
The Group's capital comprises:
2026 2025
£m £m
(restated*)
Total borrowings (excluding lease obligations) 9,664.5 10,149.4
Less: Cash and cash equivalents (1,542.9) (1,090.5)
Net debt (excluding Hybrid equity) 8,121.6 9,058.9
Hybrid equity 2,985.8 1,882.4
Borrowings and cash attributable to non-controlling interests (1,258.4) (937.9)
Cash held and posted as collateral and other deposits 246.0 63.3
Adjusted Net Debt and Hybrid Capital 10,095.0 10,066.7
Equity attributable to shareholders of the parent 12,663.9 10,181.6
Total capital excluding lease obligations 22,758.9 20,248.3
*The comparatives have been restated. See note 2.3.4.
The adjustment related to the non-controlling interest share of Scottish Hydro
Electric Transmission plc external net debt and related SSE plc external debt
is £1,258.4m at 31 March 2026 (2025: £937.9m restated) and relates to 25% of
external loans of £5,073.7m (2025: £3,758.8m restated) net of cash and cash
equivalents of £40.2m (2025: £7.3m). This adjustment was increased from
£817.9m to £937.9m at 31 March 2025, reflecting the change of definition
referred to at note 2.3.4.
13.2 Loans and other borrowings
2026 2025
£m £m
(restated*)
Current
Short-term loans 1,124.6 1,895.5
Lease obligations 79.8 68.5
1,204.4 1,964.0
Non-current
Loans 8,539.9 8,253.9
Lease obligations 376.9 386.5
8,916.8 8,640.4
Total loans and borrowings 10,121.2 10,604.4
Cash and cash equivalents (1,542.9) (1,090.5)
Unadjusted net debt 8,578.3 9,513.9
Add/(less):
Hybrid equity (note 14) 2,985.8 1,882.4
Borrowings and cash attributable to non-controlling interest holders (1,258.4) (937.9)
Lease obligations (456.7) (455.0)
Cash held and posted as collateral and other deposits 246.0 63.3
Adjusted Net Debt and Hybrid Capital 10,095.0 10,066.7
*The comparatives have been restated. See note 2.3.4.
13.2.1 Borrowing facilities
The Group maintains a diversified portfolio of funding sources, including
committed bank facilities, bond issuances, a €1.5bn commercial paper
programme and private placements to support its liquidity requirements and
investment programme. At 31 March 2026, £501.2m of the Group's €1.5bn
commercial paper programme was outstanding (2025: £890.5m).
At 31 March 2026, the Group had access to a total of £5.0bn of committed
facilities (2025: £3.0bn), comprising revolving credit facilities and other
committed arrangements. During the year, Scottish Hydro Electric Transmission
plc agreed £2.0bn of new ECA and National Wealth Fund guaranteed facilities.
As at 31 March 2026 there were no drawings on the revolving credit facilities
(2025: Scottish Hydro Electric Transmission plc utilisation £340m and SSE plc
utilisation £nil) or the new ECA and National Wealth Fund facilities.
The committed facilities are in place to ensure the Group has sufficient
liquidity headroom when making significant capital investment. The £1.5bn
revolving credit facility for SSE plc is in place to provide back-up to the
commercial paper programme and support the Group's capital expenditure plans.
The £3.5bn Scottish Hydro Electric Transmission plc facilities are in place
to support the capital expenditure and working capital during a period of
significant capital growth for the business.
On 31 March 2026, SSE plc signed an additional commitment letter which allows
SSE plc to enter a £1.5bn committed facility between 31 March 2026 and 30
June 2026.
The revolving credit facilities include sustainability-linked features which
may or may not adjust the interest margin applicable. The rate of interest is
calculated annually, subject to fulfilling certain ESG KPIs and applied
prospectively. At 31 March 2026, these features had no impact on the carrying
value of the borrowings.
13. Sources of finance (CONTINUED)
13.2.1 Borrowing facilities (continued)
Under the terms of its revolving credit and private placement borrowing
facilities, the Group is subject to the following financial covenants:
Interest Cover Ratio: The Group shall procure that the ratio of Operating
Profit to Net Interest Payable for any relevant period is not less than 2.5 to
1.
Net debt to Regulatory Asset Value: Scottish Hydro Electric Transmission plc
shall procure that the consolidated net debt to Regulatory Asset Value does
not at any time exceed 0.80 to 1.00 as assessed by their financial statements.
The Group and Scottish Hydro Electric Transmission plc complied with all
covenants throughout the year.
During the year to 31 March 2026, SSE plc issued a total of £1.6bn of new
borrowings, including £1.1bn of dual-tranche equity accounted hybrid bonds
(see note 14.2) and £0.5bn of commercial paper rolled at maturity. Scottish
Hydro Electric Transmission plc issued a total of £1.1bn of new external debt
instruments across four issuances. A total of £2.2bn of instruments matured
in the period, including £1.0bn of SSE plc Eurobonds, £0.9bn of SSE plc
commercial paper and £0.3bn of Scottish Hydro Electric Transmission plc debt
instruments.
On 7 April 2026, subsequent to the balance sheet date, SSE plc issued a
€400m (£346m) two-year floating rate note.
The weighted average incremental borrowing rate applied to lease liabilities
during the year was 5.12% (2025: 4.95%). Incremental borrowing rates applied
to individual lease additions in the year ranged between 3.75% to 7.34% (2025:
3.85% to 7.46%).
13.3 Reconciliation of net increase in cash and cash equivalents to
movement in Adjusted Net Debt and Hybrid Capital
2026 2025
£m £m
(restated*)
Increase in cash and cash equivalents 452.4 54.6
(Less)/add:
New borrowing proceeds (1,595.3) (2,592.2)
New Hybrid equity proceeds (1,103.4) -
Repayment of borrowings 2,294.2 1,055.3
Non-cash movement on borrowings (214.0) 113.7
Increase in borrowings and cash attributable to non-controlling interest 320.5 252.7
holders
(Increase)/decrease in cash held and posted as collateral and other deposits (182.7) 289.9
Increase in Adjusted Net Debt and Hybrid Capital (28.3) (826.0)
*The comparatives have been restated. See note 2.3.4.
14. Equity
14.1 Share capital
Number
(millions) £m
Allotted, called up and fully paid:
At 1 April 2025 1,111.2 555.6
Issue of shares 104.3 52.1
At 31 March 2026 1,215.5 607.7
The Company has one class of ordinary share which carries no right to fixed
income. The holders of ordinary shares are entitled to receive dividends as
declared and are entitled to one vote per share at meetings of the Company.
On 14 November 2025 the Group issued 97.9m ordinary shares at a placement
price of £20.50 per share, resulting in gross proceeds of £2,007.3m.
Transaction costs, which were directly attributable to the issuance, have been
deducted from share premium in line with IAS 32 and therefore the Group
recognised net proceeds of £1,978.4m from this share issuance.
Shareholders were able to elect to receive ordinary shares in place of the
final dividend of 43.0p per ordinary share (in relation to year ended 31 March
2025) and the interim dividend of 21.4p (in relation to the current year)
under the terms of the Company's scrip dividend scheme. This resulted in the
issue of 1.4m and 5.0m new fully paid ordinary shares respectively (2025:
12.2m and 2.8m). In addition, the Company issued 1.4m (2025: 1.7m) shares
during the year to satisfy awards to employees under certain employee share
schemes (all of which were settled by shares held in Treasury) for a
consideration of £17.4m (2025: £17.8m).
The scrip dividend take-up for the prior financial year was 9.7%, which was
below the 25.0% required by the share buyback programme, therefore no share
buybacks occurred during the current year. In the year ended 31 March 2025
3.8m shares were repurchased for total consideration of £71.7m (including
stamp duty and commission).
Of the 1,215.5m shares in issue, 3.3m are held as treasury shares. These
shares will be held by SSE plc and used to satisfy awards to employees under
certain employee share schemes.
14. Equity (CONTINUED)
14.1 Share capital (continued)
During the year, on behalf of the Company, the employee share trust purchased
1.0m shares for a total consideration of £25.4m (2025: 0.8m shares,
consideration of £14.1m) to be held in trust for the benefit of employee
share schemes. At 31 March 2026, the trust held 6.1m shares (2025: 6.7m) which
had a market value of £159.5m (2025: £107.1m).
14.2 Hybrid Equity
2026 2025
£m £m
GBP 600m 3.74% perpetual subordinated capital securities (i) 598.0 598.0
EUR 500m 3.125% perpetual subordinated capital securities (i) 453.0 453.0
EUR 1,000m 4.00% perpetual subordinated capital securities (ii) 831.4 831.4
EUR 800m 4.00% perpetual subordinated capital securities (iii) 678.9 -
EUR 500m 4.50% perpetual subordinated capital securities (iii) 424.5 -
2,985.8 1,882.4
(i) 2 July 2020 £600m and €500m Hybrid Capital Bonds
The hybrid capital bonds issued in July 2020 have no fixed redemption date,
but the Company may, at its sole discretion, redeem all but not part of the
capital securities at their principal amount. The date for the first potential
discretionary redemption of the £600m hybrid bond is 14 April 2026 and then
every 5 years thereafter. The date for the first potential discretionary
redemption of the €500m hybrid capital bond is 14 July 2027 and then every 5
years thereafter. For the £600m hybrid the discretionary coupon payments are
made annually on 14 April and for the €500m hybrid the coupon payments are
made annually on 14 July.
(ii) 12 April 2022 €1,000m Hybrid Capital Bonds
The hybrid capital bond issued in April 2022 has no fixed redemption date, but
the Company may, at its sole discretion, redeem all but not part of the
capital securities at their principal amount. The date for the first potential
discretionary redemption is 21 April 2028 and then every 5 years thereafter.
The discretionary hybrid coupon payments are made annually on 22 April.
(iii) 2 June 2025 €800m and €500m Hybrid Capital Bonds
The hybrid capital bonds issued in June 2025 have no fixed redemption dates,
but the Company may, at its sole discretion, redeem all but not part of the
capital securities at their principal amount. The date for the first potential
redemption for the €800m hybrid capital bond is 19 September 2030, and for
the €500m bond is 19 June 2033, then every five years thereafter. The
discretionary hybrid coupon payments are made annually on 19 September and 19
June respectively.
Coupon payments
In relation to the £600m hybrid equity bond a discretionary coupon payment of
£22.4m (2025: £22.4m) was made on 14 April 2025, for the €500m hybrid
equity bond a discretionary coupon payment of £16.5m (2025: £16.5m) was made
on 14 July 2025 and for the €1bn hybrid equity bond a discretionary payment
of £34.0m was paid on 22 April 2025 (2025: £34.8m). The first discretionary
coupon payment on the new hybrid equity bonds will occur on 19 June 2026 for
the €500m hybrid equity bond and 19 September 2026 for the €800m hybrid
equity bond.
The coupon payments in the year to 31 March 2026 consequently totalled £72.9m
(2025: £73.7m).
The Company has the option to defer coupon payments on the bonds on any
relevant payment date, as long as a dividend on the ordinary shares has not
been declared. Deferred coupons shall be satisfied only on redemption; or on a
dividend payment on ordinary shares, both of which occur at the sole option of
the Company. Interest will accrue on any deferred coupon.
14.3 Equity attributable to non-controlling interests
This relates to equity attributable to non-wholly owned but controlled
subsidiaries which are consolidated within the financial statements of the
Group. At 31 March 2026 the amount attributable to non-controlling interests
is £751.6m (2025: £628.8m), which relates to Scottish Hydro Electric
Transmission of £713.4m (2025: £589.6m) and SSE Pacifico £38.2m (2025:
£39.2m). The profit attributable to non-controlling interests for the year
ended 31 March 2026 is £130.0m (2025: £69.8m), which relates to Scottish
Hydro Electric Transmission £130.3m (2025: £70.6m) and SSE Pacifico £0.3m
loss (2025: £0.8m loss). The comparative has been restated. See note 2.3.4.
15. Retirement Benefit Obligations
15.1 Valuation of combined pension schemes
Quoted Unquoted Value Quoted Unquoted Value
at 31 March 2026 at 31 March 2025
£m £m £m £m £m £m
Equities 148.7 - 148.7 173.2 - 173.2
Government bonds 998.3 - 998.3 1,180.6 - 1,180.6
Insurance contracts - 432.4 432.4 - 454.4 454.4
Other investments 1,138.5 - 1,138.5 942.1 - 942.1
Total fair value of plan assets 2,285.5 432.4 2,717.9 2,295.9 454.4 2,750.3
Present value of defined benefit obligation (2,258.1) (2,248.5)
Surplus in the schemes 459.8 501.8
Deferred tax thereon (i) (115.0) (125.5)
Net pension asset 344.8 376.3
(i) Deferred tax rate of 25% (2025: 25%) applied to net pension
surplus position.
Balance sheet presentation Balance sheet presentation
2025
2026
£m £m
Retirement benefit asset 459.8 501.8
Pension asset 459.8 501.8
Movements in the combined defined benefit assets and obligations during the
year:
2026 2025
Assets Obligations Total Assets Obligations Total
£m £m £m £m £m £m
At 1 April 2,750.3 (2,248.5) 501.8 3,015.2 (2,593.6) 421.6
Included in income statement
Current service cost - (14.4) (14.4) - (15.0) (15.0)
Past service cost - (1.4) (1.4) - (4.7) (4.7)
Interest income/(cost) 154.0 (124.6) 29.4 141.3 (120.6) 20.7
154.0 (140.4) 13.6 141.3 (140.3) 1.0
Included in other comprehensive income
Actuarial (loss)/gain arising from:
Demographic assumptions - (11.2) (11.2) - 20.9 20.9
Financial assumptions - 46.5 46.5 - 288.5 288.5
Experience assumptions - (82.2) (82.2) - 1.9 1.9
Return on plan assets excluding interest income (33.8) - (33.8) (258.5) - (258.5)
(33.8) (46.9) (80.7) (258.5) 311.3 52.8
Other
Contributions paid by the employer 26.5 - 26.5 26.4 - 26.4
Scheme participant's contributions 0.1 (0.1) - 0.1 (0.1) -
Benefits paid (179.2) 177.8 (1.4) (174.2) 174.2 -
(152.6) 177.7 25.1 (147.7) 174.1 26.4
Balance at 31 March 2,717.9 (2,258.1) 459.8 2,750.3 (2,248.5) 501.8
Charges/(credits) recognised:
2026 2025
£m £m
Service costs (charged to operating profit) 15.8 19.7
(Credited)/charged to finance costs:
Interest from pension scheme assets (154.0) (141.3)
Interest on pension scheme liabilities 124.6 120.6
(29.4) (20.7)
16. Financial risk management
16.1 Financial risk management
The Board has overall responsibility for the establishment and oversight of
the Group's risk management framework. The Group's policies for risk
management are established to identify the risks faced by the Group, to set
appropriate risk limits and controls, and to monitor risks and adherence to
limits. Exposure to commodity, currency and interest rate risks arise in the
normal course of the Group's business and derivative financial instruments are
entered into to manage exposure to these risks.
SSE has a Group wide Risk Committee reporting to the Group Executive
Committee, which is responsible for reviewing the risks and exposures across
the Group by overseeing the controls and strategies employed to manage these
risks and by ensuring and promoting an effective system of internal control.
In addition, the Group has two dedicated Energy Market risk committees
reporting to the Group Executive Committee and Board respectively, with the
Group Executive Sub-committee chaired by the Chief Executive Officer (the
"Group Energy Markets Exposures Risk Committee") and the Board Sub-committee
chaired by Non-Executive Director Tony Cocker (the "Energy Markets Risk
Committee (EMRC)"). These Committees oversee the Group's management of its
energy market exposures, including its approach to hedging.
During the year ended 31 March 2026, the Group continued to be exposed to the
economic conditions impacting the primary commodities to which it is exposed
(power, gas and carbon). The Group's approach to hedging, and the diversity of
its energy portfolios (across Wind, Hydro, Thermal and Customers) has provided
certain mitigation of these exposures.
Exposure to the commodity, currency and interest rate risks noted arise in the
normal course of the Group's business and derivative financial instruments are
entered into to manage exposure to these risks. The objectives and policies
for holding or issuing financial instruments and similar contracts, and the
strategies for achieving those objectives that have been followed during the
year are explained within A6 Accompanying Information to the Group's
consolidated financial statements.
The net movement reflected in the income statement can be summarised as
follows:
2026 2025
£m £m
Operating derivatives
Total result on operating derivatives (i) (24.5) 92.9
Less: amounts settled (ii) (127.5) (141.9)
Movement in unrealised derivatives (152.0) (49.0)
Financing derivatives (and hedged items)
Total result on financing derivatives (i) (113.2) 63.6
Less: amounts settled (ii) 131.1 (50.8)
Movement in unrealised derivatives 17.9 12.8
Financial guarantee liabilities
Total result on financial guarantee liabilities (iii) 1.7 1.9
Net income statement impact (132.4) (34.3)
(i) Total result on derivatives in the income statement represents the
total amounts credited (or charged) to the income statement in respect of
operating and financial derivatives.
(ii) Amounts settled in the year represent the result on derivatives
transacted which have matured or been delivered and have been included within
the total result on derivatives.
(iii) Total result on financial guarantee liabilities in the income
statement represents the total amounts credited or (charged) to the income
statement in respect of the unwind of the financial liabilities and
recognition of new or expiring contracts.
16.2 Fair value hierarchy
The following table provides an analysis of financial instruments that are
measured subsequent to initial recognition at fair value, grouped into Levels
1 to 3 based on the degree to which the fair value is observable.
Level 1 fair value measurements are those derived from unadjusted quoted
market prices for identical assets or liabilities.
Level 2 fair value measurements are those derived from inputs other than
quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices).
Level 3 fair value measurements are those derived from valuation techniques
that include inputs for the asset or liability that are not based on
observable market data.
16. Financial risk management (CONTINUED)
16.2 Fair value hierarchy (continued)
2026 2025
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£m £m £m £m £m £m £m £m
Financial assets
Energy derivatives 460.3 213.1 11.6 685.0 71.5 80.9 5.8 158.2
Interest rate derivatives - 116.8 - 116.8 - 68.9 - 68.9
Foreign exchange derivatives - 43.5 - 43.5 - 14.8 - 14.8
Unquoted equity investments - - 7.6 7.6 - - 8.8 8.8
460.3 373.4 19.2 852.9 71.5 164.6 14.6 250.7
Financial liabilities
Energy derivatives - (787.8) (56.1) (843.9) - (80.8) (81.3) (162.1)
Interest rate derivatives - (49.2) - (49.2) - (107.8) - (107.8)
Foreign exchange derivatives - (37.2) - (37.2) - (24.1) - (24.1)
Loans and borrowings * - (15.7) - (15.7) - 88.6 - 88.6
- (889.9) (56.1) (946.0) - (124.1) (81.3) (205.4)
* At 31 March 2025, the £88.6m relates to fair value hedges that are in place
against the Group's loans and borrowings and has been included in the table
above within financial liabilities, as it is presented in loans and borrowings
liabilities in the balance sheet.
There were no significant transfers out of Level 1 into Level 2 and out of
Level 2 into Level 1 during the current and prior year. There were no
significant transfers out of Level 2 into Level 3 or out of Level 3 into Level
2 during the current and prior year.
17. Capital commitments
2026 2025
£m £m
Capital expenditure:
Contracted for but not provided 7,627.5 4,438.3
Contracted for but not provided capital commitments include the fixed
contracted costs of the Group's major capital projects. In practice
contractual variations may arise on the final settlement of these contractual
costs. The increase from the prior year relates primarily to Transmission
projects.
18. Related party transactions
The following transactions took place during the year between the Group and
entities which are related to the Group, but which are not members of the
Group. Related parties are defined as those in which the Group has control,
joint control or significant influence over.
2026 2025
Sale of goods and services Purchase of goods and services Amounts owed from Amounts owed to Sale of goods and services Purchase of goods and services Amounts owed from Amounts owed to
£m £m £m £m £m £m £m £m
Joint arrangements:
Marchwood Power Limited 179.9 (100.8) - - 111.2 (116.1) - (5.0)
Clyde Windfarm (Scotland) Limited 2.9 (202.5) 0.8 (64.7) 5.6 (187.6) 0.1 (51.6)
Beatrice Offshore Windfarm Limited 6.9 (75.1) 0.6 (11.9) 6.3 (86.1) 1.2 (7.1)
Stronelairg Wind Farm Limited 1.3 (91.9) - (29.2) 2.6 (88.4) 0.1 (25.1)
Triton Power Holdings Limited - (30.3) - (5.4) - - - -
Dunmaglass Wind Farm Limited 0.6 (37.5) - (11.2) 1.2 (32.6) - (9.0)
Neos Networks Limited 4.0 (25.5) 2.3 (5.3) 6.8 (28.2) 2.1 (4.0)
Seagreen Wind Energy Limited 48.8 (167.6) 7.9 (20.8) 54.6 (171.5) 13.6 (16.8)
Doggerbank A, B, C and D 45.6 (21.6) 61.1 (1.5) 47.7 (2.8) 36.5 (1.0)
Greater Gabbard Offshore Winds Limited 7.1 (172.9) 0.5 (62.0) 7.5 (134.7) 0.6 (50.6)
Other joint arrangements 21.4 (49.8) 3.4 (5.1) 23.9 (37.4) 12.5 (3.7)
The transactions with Marchwood Power Limited relate to the contracts for the
provision of energy or the tolling of energy under power purchase
arrangements.
The amounts outstanding are trading balances, are unsecured and will be
settled in cash.
Disclaimer
This financial report contains forward-looking statements about financial and
operational matters. These statements are based on the current views,
expectations, assumptions, and information of management, and are based on
information available to the management as at the date of this financial
report. Because they relate to future events and are subject to future
circumstances, these forward-looking statements are subject to unknown risks,
uncertainties and other factors which may not have been in contemplation as at
the date of the financial report. As a result, actual financial results,
operational performance, and other future developments could differ materially
from those envisaged by the forward-looking statements. Neither SSE plc nor
its affiliates assumes any obligations to update any forward-looking
statements.
SSE plc gives no express or implied warranty, representation, assurance or
undertaking as to the impartiality, accuracy, completeness, reasonableness or
correctness of the information, opinions or statements expressed in the
financial report or any other information (whether written or oral) supplied
as part of it. Neither SSE plc, its affiliates nor its officers, employees or
agents will accept any responsibility or liability of any kind for any damage
or loss arising from any use of this financial report or its contents. All and
any such responsibility and liability is expressly disclaimed. In particular,
but without prejudice to the generality of the foregoing, no representation,
warranty, assurance or undertaking is given as to the achievement or
reasonableness of any future projections, forward-looking statements about
financial and operational matters, or management estimates contained in the
financial report.
This financial report does not constitute an offer or invitation to
underwrite, subscribe for, or otherwise acquire or dispose of any SSE plc
shares or other securities, or of any of the businesses or assets described in
the financial report, and the information contained herein cannot be relied
upon as a guide to future performance.
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