UU puts £800m into infrastructure renewals

WATER company United Utilities has said it is continuing to deliver improvements in performance and customer service with total investment for 2016/17, including infrastructure renewals expenditure, expected to be around £800m, similar to last year.

In its trading update for the six months to September 30, the Warrington-based company celebrated the “acceleration” of its investment programme, including the modernisation of its largest wastewater treatment works, Davyhulme in Greater Manchester, which is also progressing well.

The company said group revenue is expected to be slightly lower than the first half of last year, reflecting the accounting impact of its Water Plus business retail joint venture, which completed on June 1 2016, partly offset by our allowed regulatory revenue changes.   
 
Underlying operating profit for the first half of 2016/17 is expected to be marginally higher than the first half of 2015/16.

It is anticipated that infrastructure renewals expenditure in the first half of 2016/17 will be slightly lower than the first half of last year.
 
The underlying net finance expense for the first half of 2016/17 is anticipated to be around £20m higher than the first half of last year, mainly reflecting the impact of higher RPI inflation on its index-linked debt and slightly higher net debt.

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