United Utilities profits trump expectations
UNITED Utilities yesterday reported profits which narrowly beat expectations and raised its final dividend.
Britain’s largest listed water utility, said underlying pre-tax profit fell about one per cent to £327m but still beat analysts’ estimates of £317.7m.
Price increases helped push sales up three per cent to £1.57bn, the company said in its figures covering the year until the end of March.
United Utilities hiked its final dividend to 21.34p, a rise of 6.7 per cent.
That is in line with the company’s policy of a rise two per cent above the level of retail price index inflation.
Meanwhile the company’s capital expenditure was £680m – up 12 per cent on the previous year.
The firm said £154 of that was spent on improvements to its infrastructure, including stopping leaks.
Chief executive Steve Mogford said: “We have delivered another good set of results, despite the tough economic climate. We are pleased with the recent progress we have made and believe there is plenty of opportunity to deliver further improvements.”
The company also pointed out that it had met regulatory targets for the amount of water that it leaks.
It ended the year with £5.1bn worth of net debt.
United provides services to seven million customers in the north west of England.
It also serves 700,000 businesses with water and sewerage.