United Utilities ahead of full-year targets
WATER company United Utilities expects to beat management targets when it posts full-year figures in May.
In a trading statement the group, which delivers water and sewerage services to households and businesses across the North West, said revenue from its regulated operations followed a “positive trend” in the first half but slowed in the final six months due to “seasonality”.
It expects infrastructure-related costs to be higher in the second half of the year to March with a total of £600m being spent during the 12-month period.
“This is good progress, reflecting the company’s detailed advanced planning, and represents a significant increase in capital investment compared with the first year of the previous five-year period when £441m was invested,” the business said in a statement.
Earlier in the month the FTSE 100 company bolstered its funding position with a £200m index-linked loan facility from the European Investment Bank.
It incurred one-off costs of £16m in the first half as part of a restructuring programme.
UU was told to cut bills by 2.6% and invest £3.6bn by 2015 by the water regulator OFWAT following a price review in 2009. It has since raised some £600m by selling 14 assets held by the non-regulated side of the business.
The company will post full-year figures on May 26.
