We have delivered another year of tight control over our underlying cost base.
Underlying operating profit increased by £59 million, largely reflecting allowed regulatory revenue changes and lower infrastructure renewals expenditure, with higher underlying depreciation largely offset by a reduction in our remaining underlying cost base.
Reported operating profit was £114 million lower than underlying operating profit mainly due to accelerated depreciation in relation to bioresources assets and costs relating to the ongoing COVID-19 pandemic.
Key performance indicators
Underlying operating profit
Underlying earnings per share
Our future plans
We have made great strides in efficiency in recent years, driving sustainable cost reductions in both wholesale and retail.
The total expenditure (totex) needs projected in our business plan were deemed to be one of the most efficient in the sector, and we exit the 2015–20 period at the run-rate needed to meet the required level of totex for 2020–25.
The COVID-19 pandemic creates some uncertainty in the economic environment and practical considerations in the delivery of our work, but we remain committed and determined to deliver our plans for the next period at a continued efficient cost.