National Grid sets its sights beyond Energis

National Grid has sold its stake in Energis following an announcement that the utility plans to set up a telecoms company overseas.

David Jones, chief executive at National Grid, said the move is part of a five year strategy to increase earnings by 20 per cent. He said the company wants to repeat the success of Energis by partnering with companies in "other countries where there is a need for telecoms".

Jones said he expected Energis to form, or join, a global telecommunications alliance.

The move comes as National Grid reported a drop in its half-year pre-tax profits to £220.9m from £225.2m. The dividend was raised to 5.25p from 4.83p.