SSE PLC's (LSE:SSE) first-half results on Wednesday 13 November come at a time when utilities are increasingly under scrutiny, says wealth platform AJ Bell.
While the sector dodged any windfall taxes in the new government’s first Budget, environment, investment and especially bills at a time when inflation has squeezed a lot of consumers’ pockets will keep them under the spotlight.
In terms of SSE’s first-half figures there are two numbers that will grab the headlines, says AJ Bell.
"The first is adjusted earnings per share (EPS), where SSE is targeting a compound annual growth rate of 13% to 16% between 2022 and 2027.
That would take EPS to between 175p and 200p a share, up from 158.5p in the year to March 2024.
"Analysts expect a more modest rate of growth for this year, though, and the benchmark for the first-half result is last year’s adjusted EPS figure of 37p.
"The second is the dividend. SSE cut its dividend in 2024 to 60p a share to fund the development of its renewable assets.
"The plan now is to grow that figure by 5% to 10% a year out to 2027 with a first-half payment a year ago of 20p."