Northern Electric

NTEA.L

Regulated Electric · Utilities

Exchange

London Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Dec 31, 2024

How the score breaks down

Quality

Strong

Growth

Strong

Cash Flow

Exceptional

Stability

Strong

Valuation

Good

Dividends

Good

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Winston Score History

The full picture

Northern Electric PLC is a regulated electricity distribution company based in the United Kingdom. It owns and operates the power lines, cables, and substations that deliver electricity to homes and businesses across the North East of England. The company does not generate electricity itself — it simply moves power from the national grid to end customers, acting as the essential "last mile" of the electricity network.

Northern Electric earns money by charging a regulated fee for using its distribution network, set by the UK energy regulator Ofgem. This fee structure means revenue is relatively stable and predictable, but profit growth is tightly controlled by regulators rather than market forces. The company operates exclusively in its licensed region of North East England, making it a natural monopoly in that area. The main risk is regulatory — if Ofgem tightens the allowed returns in future price control reviews, the company's earnings could be squeezed, limiting how much cash it can return to shareholders.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+22.8% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

+66.0% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

0.1%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

£30M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Northern Electric is a rare growth stock that's already generating positive cash flow while growing at 23%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale

Gross Margin

92.6%

Premium pricing power — 92.6% gross margin

Profit after running costs

Operating Margin

47.7%

Excellent — 47.7% operating margin

Return on the money invested

ROCE

11.8%

Below par — 11.8% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+17.6%

Fast-growing sales (+17.6% YoY)

Profit growth

EPS YoY

+54.3%

Earnings growing fast (+54.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

6/8 quarters

Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash

Cash Conversion

284%

Turns 284% of profit into real cash

Spare cash per sale

FCF Margin

48.5%

Converts sales into free cash efficiently (48.5%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

What it owes vs what it owns

Debt / Equity

0.89

Moderate — manageable debt (0.89)

Covers its interest

Interest Cover

8.51x

Comfortably covers interest (8.5x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

0.8x

no trend

Attractive valuation — P/E 0.8

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Dividend

Dividend Yield

6.55%

no trend

Healthy income — 6.55% yield

Yield above 6% — often a flag the market is pricing in a cut.

Dividend record

Dividend Growth

+0.0%

no trend

Dividend flat

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