- PBT up two per cent
- EPS up five per cent
- Dividend up 2.9 per cent
After UK and US regulatory reviews in the previous year, National Grid made a solid start under the new regime, with earnings climbing and an increased dividend.
Adjusted operating profits rose 1% to £3.7bn and profit before tax by 2% to £2.6bn, with adjusted earnings per share up 5% to 54.0p.
The FTSE 100 company has recommended a final dividend of 27.54p a share, meaning the full year dividend will rise 2.9% in line with management's wish to grow the dividend at the rate of RPI inflation.
Chief Executive Steve Holliday said: "National Grid delivered a solid year of financial performance, led by a good start to our eight year price controls in the UK and consolidation of underlying operational improvements in our US operations."
During the year National Grid invested over £3.4bn in infrastructure while delivering one of its best ever years in terms of network reliability and resilience.
Holliday pointed out how strong cost efficiencies were pushed through, particularly in the UK where around £70m of the savings will benefit customer bills from 2015/16.
In the UK, investment in flood defences over the past few years helped a strong reliability performance, minimising cost and reliability impacts on National Grid's operations from the exceptionally wet weather and associated widespread flooding incidents.
A strong year in the UK, the first year under the new RIIO (Revenue = Incentives plus Innovation plus Outputs) performance-based regulatory model, saw total expenditure efficiencies earned in 2013/14 contribute 120 basis points (Bps) to overall UK Return on Equity outperformance of 260 Bps.
Regulated investment of £2bn contributed to 5% UK regulated asset value growth, up £1.1bn to £24.9bn.
In the US, benefits from new rate plans in New York and Rhode Island and focused cost control helped to offset general inflationary pressures on underlying costs, with a return on equity of 9.0% down from 9.2% the year before.
Capital investment of $2.0bn contributed to 9% US rate base growth of $1.3bn to $16.3bn.
On the company's outlook, Holliday added: "We finished the year in a strong position, delivering a robust cash flow performance, good growth in our asset base and lower gearing.
"This was supported by the increased clarity given by our new price controls and rate plans. By achieving strong efficiencies, we were able to offset the cost of US systems implementation and deliver good overall returns on equity.
"As a result, we continue to build a stronger business from which to deliver healthy returns, and good organic growth to support our commitment to sustainable dividend growth."