Investors' Chronicle
National Grid, car dealerships & investment trusts: The Companies and Markets Show
Oct 18, 2024
Jemma Slingo, an expert on utility company transformations, and Alex Newman discuss National Grid's ambitious £60 billion investment plans, pondering its shift from an income to a growth stock. Mark Robinson dives into Virtu Motors' struggles in the automotive market, revealing insights on valuations and future prospects. Lastly, Holly McKechnie navigates the complexities of investment trust costs, focusing on recent regulatory changes and what they mean for investors amidst the shifting landscape of the financial sector.
33:55
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Quick takeaways
- National Grid's substantial £60 billion investment over five years emphasizes its shift towards being viewed as a growth stock amid increasing electricity demand.
- Vertu Motors demonstrates resilience in the automotive market by focusing on the strong used car sector and enhancing digital services for profitability.
Deep dives
National Grid's Major Investment in Infrastructure
National Grid is making a significant £60 billion investment over the next five years to enhance both the UK and US energy grids. This investment is essential as electricity demand is anticipated to double in the next quarter-century, requiring upgrades to the existing infrastructure. The transition to renewable energy sources, often generated off the coast, necessitates additional reinforcement and expansion of the grid to connect new energy generation sites with population centers. Currently, inefficiencies in the grid are causing expensive disruptions, such as paying wind farms to halt production while relying on more expensive power sources located closer to consumers.
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