olivLaw · European equity research
Northern Electric plc NTEA.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
Northern Electric plc operates the electricity distribution network in the north of England, as part of the Northern Powergrid group. The company now faces growing pressure to adapt its network to climate change, including flooding, extreme heat and storms, as well as to the energy transition towards decarbonisation. Its 2025 annual report shows a rising workforce, reaching 1,802 employees.
At the close of 05 Nov 2026, Northern Electric plc (NTEA.L) stock was 1.21 GBP (+0.00% on the day), with dividend yield 27.39%, beta -4.44, 52-week range 0.01–1.37 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 52.3
- neutral
- Bollinger (20, 2)
- 1.17 – 1.22
- in the upper half of the band · %B 0.70 · band width 4.1%
- SMA 50 / 200
- 1.21 / 1.26
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- 0.00 / -0.00
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +2.1% | −0.6% | +2.8 pp | — |
| 3 months | unavailable | −4.2% | unavailable | — |
| 6 months | +9,351.0% | +4.3% | +9,346.6 pp | — |
| Year to date | unavailable | +7.5% | unavailable | — |
| 1 year | unavailable | +9.9% | unavailable | +5.8% |
| 3 years | +3.9% | +49.8% | −46.0 pp | +26.3% |
| 5 years | −19.7% | +42.8% | −62.5 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
EPS unavailable in the issuer's structured filings (e.g. a partnership reports per unit, not per share).
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 570.5 m | 670.7 m | 586.1 m |
| Revenue YoY | unavailable | +17.6% | −12.6% |
| Net income | 135.4 m | 207.7 m | 135.2 m |
| Net income YoY | unavailable | +53.4% | −34.9% |
| Diluted EPS | unavailable | unavailable | unavailable |
| Diluted EPS YoY | unavailable | unavailable | unavailable |
| net % | 23.7% | 31.0% | 23.1% |
| Free cash flow | 128.9 m | 124.9 m | 18.9 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 21.7 m GBP
- Financial debt
- 1.3 bn GBP
- Net debt
- 1.3 bn GBP
- Equity
- 1.5 bn GBP
- Total assets
- 4.1 bn GBP
- Debt / equity
- 0.89x
- Current ratio
- 1.08x
- ROE
- 9.4%
- ROA
- 3.5%
- FCF margin
- 3.2%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 570.5 m | 670.7 m | 586.1 m | esef· 27 May 2026verified |
| Cost of revenue | 78.4 m | 54.5 m | 56.2 m | esef· 27 May 2026verified |
| Gross profit | 492.1 m | 616.2 m | 529.8 m | esef· 27 May 2026verified |
| Operating income | 216.2 m | 314.5 m | 228.6 m | esef· 27 May 2026verified |
| Interest expense | 53.9 m | 54.2 m | 58.0 m | esef· 27 May 2026verified |
| Pre-tax income | 180.5 m | 281.2 m | 183.9 m | esef· 27 May 2026verified |
| Income tax | 45.1 m | 73.5 m | 48.7 m | esef· 27 May 2026verified |
| Net income | 135.4 m | 207.7 m | 135.2 m | esef· 27 May 2026verified |
| Dividend per share | 0.38 | 2.17 | 0.33 | esef· 27 May 2026verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 14.8 m | 13.4 m | 21.7 m | esef· 27 May 2026verified |
| Receivables | 342.9 m | 178.3 m | 339.5 m | esef· 27 May 2026verified |
| Inventories | 29.9 m | 29.4 m | 43.8 m | esef· 27 May 2026verified |
| Current assets | 400.5 m | 235.9 m | 426.1 m | esef· 27 May 2026verified |
| Property, plant & equipment, net | 3.2 bn | 3.3 bn | 3.5 bn | esef· 27 May 2026verified |
| Intangibles (excl. goodwill) | 50.6 m | 54.3 m | 56.6 m | esef· 27 May 2026verified |
| Total assets | 3.8 bn | 3.8 bn | 4.1 bn | esef· 27 May 2026verified |
| Accounts payable | 155.8 m | 188.6 m | 174.4 m | esef· 27 May 2026verified |
| Long-term debt | 1.2 bn | 1.1 bn | 1.3 bn | esef· 27 May 2026verified |
| Current liabilities | 330.0 m | 366.6 m | 392.9 m | esef· 27 May 2026verified |
| Total liabilities | 2.3 bn | 2.4 bn | 2.6 bn | esef· 27 May 2026verified |
| Equity | 1.5 bn † | 1.4 bn † | 1.5 bn † | esef· 27 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 368.7 m | 389.6 m | 300.3 m | esef· 27 May 2026verified |
| Capex | 239.8 m | 264.6 m | 281.4 m | esef· 27 May 2026verified |
| Free cash flow | 128.9 m ≈ | 124.9 m ≈ | 18.9 m ≈ | esef· 27 May 2026derived |
| Investing cash flow | -285.2 m | -303.9 m | -468.7 m | esef· 27 May 2026verified |
| Financing cash flow | -82.2 m | -86.9 m | 176.7 m | esef· 27 May 2026verified |
| Dividends paid | 9.0 m | 9.0 m | 9.0 m | esef· 27 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 37.5% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Key indicators
Coverage and freshness
Score by group
38% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 37.5% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 6.4% | 25 (vs peers) | 28% |
| Net margin · Quality | 23.1% | 74 (vs peers) | 17% |
| FCF conversion · Quality | 14.0% | 0 (on a fixed band) | 17% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 3.9x | 38 (on a fixed band) | 17% |
| Current ratio · Balance sheet | 1.1x | 24 (on a fixed band) | 11% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | 47.6% | 100 (on a fixed band) | 11% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet32/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality32/100 · 3/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
NORTHERN ELECTRIC PLC (NTEA.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 586.1 m GBP in 2025; YoY growth -12.6%; net margin 23.1%; ROE 9.4%.
The estimated value range is 3.24–4.00 GBP per share (median of 1 methods, agreement: single method); assumptions are illustrative. Against the central value of 3.58 GBP, the price of 1.21 GBP leaves a potential of 196.9% (value / price − 1) and a margin of safety of 66.3% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 37.5% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 23.1%
- Payout ratio (FCF): 47.6%
- The price is below the estimated value range
What contradicts it
- ROIC: 6.4%
- FCF conversion: 14.0%
- Current ratio: 1.1x
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
| AEP.LAnglo-Eastern Plantations PLC | — | — | 16.1% | 19.5% | +25.0% | +5% / +113% |
1- and 3-year price returns: for NTEA.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Northern Electric plc operates the electricity distribution network in the north of England, as part of the Northern Powergrid group. The company now faces growing pressure to adapt its network to climate change, including flooding, extreme heat and storms, as well as to the energy transition towards decarbonisation. Its 2025 annual report shows a rising workforce, reaching 1,802 employees 1.
SWOT
Strengths
- The company operates a regulated network with predictable revenues under the ED2 regulatory plan, providing a stable base for investment.
- A formal climate planning framework exists, with short, medium and long-term scenarios integrated into financial planning.
- The company has renewed its ISO 45001 certification for its occupational health and safety management system.
Weaknesses
- Safety indicators did not reach their set targets, and vehicle accidents rose compared with the previous year.
- The network is vulnerable to flooding and storms, and coastal substations face higher exposure.
- Reliance on external contractors for field work has been linked to rising safety incidents compared with the prior year.
Opportunities
- Extending the network for electric vehicles, electric heating and local generation could create new regulated investment.
- Innovation projects, such as using LiDAR data for vegetation management, could improve operational efficiency.
- Collaboration with other infrastructure operators and local authorities could reduce the risk of cascade failures.
Threats
- Extreme weather such as floods and storms could cause supply losses and additional repair costs.
- Regulatory pressure on service quality and customer payments could increase if indicators are not met.
- A shortage of skilled staff could affect the ability to deliver investment and maintenance programmes.
Risks
- Physical climate riskshigh
Floods and storms can affect substations and overhead lines, leading to interruptions and additional repair costs that affect regulated indicators.
- Employee and contractor safetymedium
Safety indicators remained below target levels, which could draw regulatory attention and affect the company's reputation.
- Vegetation growthmedium
A longer vegetation growing season could increase the frequency of faults on overhead lines and tree-cutting costs.
- Dependence on skilled stafflow
If recruitment and retention do not keep pace with investment programmes, the execution of works could slow down.
Investment thesis
What would need to be true (bull case)
- The regulated framework and the ED2 plan provide a predictable revenue base, and network investment could grow as the economy electrifies.
- The company has a detailed climate plan integrated into its finances, which could reduce the impact of extreme weather on customers.
- Innovation and decarbonisation projects could open new regulated revenue streams as demand for connections grows.
What would break the thesis
- Safety indicators were not met, which could lead to regulatory pressure and additional costs.
- Exposure to floods and storms could generate repair costs that are hard to anticipate and could affect reliability indicators.
- If the regulatory process imposes stricter constraints, the company's revenues could be less predictable than the current plan suggests.
What to watch
- Results of the joint stress test with Ofgem on extreme heat, wind and flooding2026
- Trend in OSHA indicators and vehicle accidents in the next reporting period2026
- Progress of the ED3 business plan and the climate resilience strategy2027
- Trend in the absence rate and the recruitment pipeline for apprentices and engineersnext annual report
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Northern Electric plc, part of the Northern Powergrid group, runs electricity distribution in the north of England through the network it manages 1. Its activity is regulated by Ofgem, and its revenues depend largely on performance against network reliability indicators, such as interruption measures 1. The company also reports on employee health and safety, staff development and innovation projects aimed at network resilience 1.
The short-term strategy focuses on maintaining service continuity in the face of extreme weather, on investment in substations and overhead lines, and on vegetation management 1. The business plan for the ED2 period includes risk mitigation programmes whose costs and indicators were set out in the submission to Ofgem 1.
As a network operator, the company does not sell energy directly to end customers; it provides transmission and network access, and its role in the decarbonisation strategy is to extend the network for new connections, such as electric vehicle chargers and local energy generation 1.
Segments
Maintenance and workforce
The company maintains its own field teams and apprenticeship programmes for engineers and technicians, and its workforce grew in 2025, notably through the Workforce Renewal Programme 1.
Market context
The company operates in the UK electricity distribution sector, a regulated market in which revenues and investments are set over multi-year regulatory periods 1. Demand for network connections grows with the spread of electric vehicles, heat pumps and renewable generation, which could influence the level of investment required 1.
Climate risks, such as extended heavy rainfall and rising temperatures, are recognised in regulatory documents as factors that could raise maintenance and repair costs, making the regulatory environment and investment funding key factors for the whole sector 1.
Trends
- Climate change and physical riskheadwind
Climate projections point to more frequent prolonged rainfall and flooding, especially in coastal areas, which could affect substations and lead to supply interruptions 1. The company has included these scenarios in its investment and regulatory plans 1.
- Electrification and decarbonisationtailwind
Growing adoption of electric vehicles, electric heating and local generation expands the role of the network and creates demand for new connections, an opportunity for regulated investment 1.
- Vegetation growthheadwind
The vegetation growing season has lengthened, which could increase pressure on overhead lines and tree-cutting costs if not managed through dedicated programmes 1.
- Workforce and safety pressuresmixed
Safety targets were not met in 2025, and the company launched additional training and safety improvement programmes, showing that workforce management remains a challenge 1.
Competitive position
The company operates as a regional distribution monopoly within its licence area, so direct competition is limited, but its performance is compared with other network operators through regulatory mechanisms and benchmarking 1.
Competitive pressure comes mainly from how other UK network operators manage their investment and reliability, since this influences the level of regulated remuneration 1.
- Other UK electricity distribution network operators
Comparable regional operators assessed under the same Ofgem regulatory mechanisms, with no US ticker identified in the source.
- Regional network operators within Berkshire Hathaway Energy group
The company is part of the Berkshire Hathaway Energy group, and its safety practices are benchmarked against the group, with no separate ticker.
- Network service contractors
External providers of maintenance and vegetation management services with whom the company works on its operational programmes.
- Smart grid technology providers
Companies offering innovation and monitoring solutions that the company may use in its network resilience projects.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202527 May 2026
- Annual report 202424 Jun 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Northern Electric plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.