Solid sales for United Utilities

City A.M. Reporter
UNITED Utilities, the largest listed water utility, said trading in the second-half had been slightly ahead of its expectations, putting it on track for a solid underlying performance for the year.

The company said regulated revenue had continued the positive trend from the first-half, but would be slightly lower in the second, reflecting seasonal changes.

“The full-year position represents a healthy financial performance in light of the impact of the price review,” said United Utilities, which has been asked by industry regulator Ofwat to cut prices.

Analysts expect the company to report a full-year pre-tax profit of £302m, on revenue of £1.6bn, according to a poll.

Capital expenditure will hit £600m this year, United Utilities said, though the firm said it is unlikely to meet its leak targets thanks to the severe weather over Christmas.

Last month, Northumbrian Water and Pennon had also said trading in the second-half had been in line with estimates, despite the snowy conditions.

Shares in United Utilities closed up 0.9 per cent yesterday at 584.5p, valuing the firm at £1.99bn.