United Utilities confident on targets

Waste and water group United Utilities said in a trading update today that it is on course to deliver good financial performance for the year.

The firm, which is currently the target of takeover bid speculation, said current trading is in line with group expectations.

Revenue in the year to the end of March 2013 is expected to be higher than last year, largely due to the regulated price increases with industry watchdog Ofwat. It added that price increases are slightly below the price rise set out by the regulator, due to customers switching to water meters.

The group added that borrowings are expected to be moderately higher compared to March this year. United Utilities will announce its half-year results on 28 November.