- United Utilities reported its half-year turnover increased by 10.9% to £1.1bn
- The company’s underlying operating profits jumped by 23.8% to £335.7m
United Utilities expects annual revenues to grow by about 10 per cent this year, as the North West England water firm benefits from higher consumer bills.
Britain’s biggest listed water company reported its turnover increased by 10.9 per cent to £1.1billion in the six months ending September thanks to higher household bills.
This helped its underlying operating profits jump by 23.8 per cent to £335.7million.
Upgraded growth targets for the year put United Utilities on track to meet analyst revenue estimates of £2.13billion for the year to the end of March 2025.
Result: United Utilities reported its turnover increased by 10.9 per cent to £1.1billion in the six months ending September thanks to higher household bills
Reported pre-tax profits declined by 12.1 per cent to £140.6million, which United blamed on a £114million jump in net finance expenses that largely stemmed from a fall in fair value gains on debt and derivatives.
United Utilities, which supplies water to 7.3 million people across North West England, also revealed its net debts climbed by about £500million to over £9billion.
Yet the FTSE 100 company boosted its half-year dividend by 4.2 per cent to 17.3 pence per share.
‘We have delivered a robust set of operational and financial results,’ remarked Louise Beardmore, chief executive of United Utilities.
She added: ‘Looking ahead, we continue to evolve our plan for the next five years, with ambitious investment proposals to build a stronger, greener and healthier North West.
‘This will see us invest significantly in new infrastructure, supporting 30,000 jobs and aligning with the Government’s ambitions for economic growth in the region.’
Between 2025 and 2030, the business intends to spend £13.7billion on upgrading its infrastructure to try and reduce leakages by a quarter and storm overflows by 60 per cent.
Britain’s water sector has come under intense criticism in recent years for its poor record on sewage discharges and the high debts it has accumulated whilst paying significant dividends to shareholders.
Water companies in England and Wales released untreated sewage into rivers about 464,000 times in 2023, according to Environment Agency data.
Last week, United Utilities announced plans to accelerate work on spill reductions by making improvements from an additional 700 sites.
It came soon after the BBC claimed the firm illegally pumped over 140 million litres of waste into Lake Windermere over a three-year period.
United Utilities shares were 0.9 per cent up at £10.58 on Thursday morning and have flatlined over the past 12 months.
DIY INVESTING PLATFORMS
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.