United Utilities on track to hit targets
WATER company United Utilities expects interim revenues to beat last year’s figure, but this will be offset by capital spending.
In a trading update for the six months to September 30, Warrington-based UU, the North West’s only FTSE 100 company, said the increase would reflect the regulated price increase for 2012-13.
“However, as expected, this increase is slightly below the allowed regulated price rise, principally reflecting the ongoing impact of customers switching to meters and continued lower commercial volumes,” said the company.
“As outlined previously, the increase in revenue for the full-year is anticipated to be largely balanced by higher depreciation, alongside higher infrastructure renewals expenditure (IRE) and other operating costs both of which are impacted by the transfer of private sewers.”
UU said current trading was in line with the group’s expectations and it continues to make progress improving operational performance and customer service. It is confident of delivering its 2010-15 regulatory outperformance targets.
A deferred taxation credit of £50 million will be recognised in the financial statements for the first half of 2012-13 following a cut in corporation tax from 24% to 23%.
The company supplies 3.2 million homes and businesses in the North West. Profits last year were £327m on revenues of £1.56bn. UU will announce its half year results on November 28.
