PETER ATHERTON | LIBERUM
The results were in line with guidance they gave in March, but the company has made huge writedowns and market conditions remain pretty tough. The return on capital is not great either. The flaws in the price freeze model mean they won’t be able to lower their bills if wholesale costs continue to fall.
ANGELOS ANASTASIOU | WHITMAN HOWARD
The results weren’t too bad and it is unsurprising that SSE is pointing out the challenges in the market. The outlook is uncertain, with SSE recognising that its earnings growth over the next couple of years is subject to greater risk. But the share price shows the market is taking it on the chin.
BRENDA KELLY | IG
SSE have posted a pretty decent rise in profit despite a challenging climate since Labour’s price freeze pledge last September. In fact, SSE’s share price has risen by over 20 per cent since January so there could be a little more upside. But losing over 370,000 customers last year is an issue.