Annual Financial Report

RNS Number : 9576T

National Grid PLC

16 June 2009

 



16 June 2009

National Grid plc ('National Grid')

Publication of Annual Report and Accounts

National Grid has today issued the following documents:

Annual Report and Accounts 2008/09

Annual Review 2008/09

Performance Summary 2008/09

Notice of 2009 Annual General Meeting 

National Grid's Annual General Meeting ('AGM') will be held on Monday 27 July 2009 at The ICC, Birmingham. At the AGM, it is proposed that new Articles of Association be adopted i) from the close of the AGM and ii) on 1 October 2009 respectively, primarily in order to take account of the changes in company law brought about by the Companies Act 2006. A summary of the proposed changes is set out in the Notice of 2009 AGM. Copies of the New Articles and the Current Articles, marked up to show the changes being proposed, are available for inspection at the Company's registered office and on the Company's website.

All the above documents (along with associated proxy cards) will shortly be available to the public for inspection at the UKLA Document Viewing Facility at: 25 The North Colonnade, Canary Wharf, London E14 5HS.

In addition, the Annual Report on Form 20-F is being filed with the US Securities and Exchange Commission. Shareholders resident in the United States can receive a hard copy of the Company's audited financial statements free of charge on request by contacting The Bank of New York Mellon toll free at 1-800-466-7215. 

The documents listed above, and the Form 20-F, are also available electronically on National Grid's website at http://www.nationalgrid.com/annualreports/2009/.

In accordance with DTR6.3.5(2)(b), the following is provided in respect of information that was not previously made available in the Company's 2008/09 Preliminary Results Statement.

Statement of Directors' responsibilities

The Directors are responsible for preparing the Annual Report and Accounts, including the consolidated financial statements and the Company financial statements and the Directors' Remuneration Report, in accordance with applicable law and regulations. 

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have prepared the consolidated financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union, and the Company financial statements and the Directors' Remuneration Report in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice, UK GAAP). In preparing the consolidated financial statements, the Directors have also elected to comply with IFRS, issued by the International Accounting Standards Board (IASB). The consolidated financial statements and Company financial statements are required by law to give a true and fair view of the state of affairs of the Company on a consolidated and individual basis and of the consolidated profit of the Company for that period. 

In preparing these financial statements, the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and estimates that are reasonable and prudent; 

• state that the consolidated financial statements comply with IFRS as adopted by the European Union and with regard to the Company financial statements that applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and 

• prepare the consolidated financial statements and Company financial statements on a going concern basis unless it is inappropriate to presume that the Company, on a consolidated and individual basis, will continue in business, in which case there should be supporting assumptions or qualifications as necessary.

The Directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Company on a consolidated and individual basis and to enable them to ensure that the consolidated financial statements comply with the Companies Act 1985 and Article 4 of the IAS Regulation and the Company financial statements and the Directors' Remuneration Report comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the Company and its subsidiaries and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Each of the Directors, whose names and functions are listed in the Business Overview section of the Annual Report and Accounts on pages 16 and 17, confirms that, to the best of their knowledge:

• the consolidated financial statements and the Company financial statements, which have been prepared in accordance with IFRSs as adopted by the European Union and UK GAAP respectively, give a true and fair view of the assets, liabilities, financial position and profit of the Company on a consolidated and individual basis; and 

• the Annual Report includes a fair review of the development and performance of the business and the position of the Company on a consolidated and individual basis, together with a description of the principal risks and uncertainties that it faces.

By order of the Board

Helen Mahy

Company Secretary & General Counsel

13 May 2009

Risk management

Our approach to risk management is described in the Corporate Governance section on pages 96 and 97. This sets out how we have established an enterprise wide risk management process with the objective of identifying risks that could have an adverse impact on National Grid. 

In addition, information on how we have addressed certain of our financial risks is included in the financial position and financial management section of the Operating and Financial Review on pages 79 to 86.

Risk factors

Through our risk management process, we have identified a number of significant risks and uncertainties in achieving our objectives as follows:

• changes in laws or regulations; 

• breaches of environmental or health and safety law or regulations; 

• network failure or inability to carry out critical non-network operations; 

• achievement of business performance objectives, including regulatory targets and delivering anticipated cost and efficiency savings;

• business development activity, including acquisitions and disposals;

• regulatory treatment of commodity costs passed through to consumers;

• reputation damage from disruptions to supply, even if outside our control;

• fluctuations in exchange rates, interest rates and commodity prices and their impact on borrowings, derivatives and commodity contracts;

• restrictions in borrowings, changes in credit ratings, volatility and disruption of global financial markets, reduced liquidity and access to funding opportunities;

• periods of deflation; 

• future funding requirements of our pension schemes; 

• changes in accounting standards or in tax rates; 

• consumers, suppliers or other counterparties failing to perform their obligations; and

• impact of seasonal or weather-related fluctuations.

Not all these factors are within our control and, in addition, there may be other factors besides those listed that may have an adverse effect on National Grid. These risk factors are described in more detail within the Corporate Governance section on pages 97 to 99.

Related party transactions

We provide services to and receive services from related parties, principally joint ventures. In the year ended 31 March 2009, we charged £4 million and received charges of £44 million from related parties (other than Directors) compared with £3 million and £33 million in 2007/08 and £4 million and £26 million in 2006/07 respectively.

Further information relating to related party transactions is contained within note 30 to the consolidated financial statements. Details on amounts paid to Directors are included within the Directors' Remuneration Report on pages 102 to 112.

 

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