Companies roundup: National Grid & Games Workshop

After causing a splash with its £7bn capital raise and £60bn spending plan between 2025 and 2029 in May, National Grid (NG.) has now released its official strategy for the next regulatory period, running from 2026 to 2031. The overall spending figure is £35bn, split between £11bn to maintain and upgrade existing networks and £24bn to increase network capacity. “The RIIO-T3 plan further underpins and is consistent with our expected £60bn investment across the group for the five years to March 2029,” National Grid said. 

The grid operator has estimated a 6.3 per cent cost of equity, which is a level “that reflects investor requirements under current market conditions to enable us to attract the significant new equity required”. The dividend would grow at 3 per cent a year under the plans. 

“It is now critical that Ofgem plays its part in developing an investable framework that will allow us to deliver at the unprecedented scale and pace that is needed to meet the UK's ambitious climate goals,” said National Grid chief executive John Pettigrew. Ofgem will publish a draft decision in the summer and then the final determination at the end of 2025. AH

Read more: Is it time to tap into National Grid?

Games Workshop declares 80p dividend

Games Workshop Group (GAW) surprised investors this morning with the announcement of a 80p dividend, taking the total payout so far this financial year to 265p a share, up from 195p a year ago.

In a statement, the creator of the Warhammer franchise said the payment reflected its policy to “distribute truly surplus cash”. The dividend will be paid on 14 February 2025 for shareholders on the register on 10 January.

The Nottingham-headquartered company has delivered bumper returns for shareholders this year and is set to be propelled to the FTSE 100 index next week, more than three decades after its debut on the London Stock Exchange. 

Earlier this month, Games Workshop said it had agreed 'creative guidelines' with Amazon to adapt its Warhammer 40,000 universe into films and television series. VM

Rents continue to rise

Rents increased by 9.1 per cent on average in the 12 months to November 2024, according to data from ONS. 

This is up from 8.7 per cent in the 12 months to October 2024. Rental inflation was highest in London where prices rose by 11.6 per cent. 

Average house prices across the UK saw an increase of 3.4 per cent over the period, up from 2.8 per cent in the 12 months to September 2024. The average house price is now £309k in England, £222k in Wales and £197k in Scotland. NV

Shoe Zone shares plunge as divi is scrapped

Shares in discount shoe retailer Shoe Zone (SHOE) dropped by 40 per cent after it scrapped its dividend, citing worsening trading conditions.

The company halved its adjusted pre-tax profit guidance for its current financial year to £5mn, stating that consumer confidence has weakened over the past 10 weeks. 

It also put the boot into the recent Budget, arguing that the increased costs imposed on employers meant several of its stores “have now become unviable” and will be closed. MF

Market baulks at IntegraFin’s cost plans 

Financial platform provider IntegraFin (IHP) has reported inflows of £2.5bn, amid growing adviser and client numbers. However, the market did not react well to news that administrative costs are set to rise by 9 per cent next financial year, excluding a £2mn London office move. Shares fell by 8 per cent in early trading. 

Underlying administrative costs rose by 12 per cent in the year to 30 September, with the bulk of this reflecting higher staff costs. As a result, IntegraFin’s adjusted operating margin fell from 42 per cent last year to 40 per cent. However, adjusted earnings per share still rose by 7 per cent year-on-year to 16.2p, and the dividend edged up by 2 per cent to 10.4p. JS