United Utilities delivering on all fronts

North West water and wastewater group United Utilities (UU) reported better interim revenues and pre-tax profits today.

Releasing its half year figures to September 30, the Warrington-based business achieved a turnover of £916.4m, compared with £876m last year.

Reported pre-tax profits of £260m were a £17m improvement on 2017 levels.

Shareholders will receive a proposed interim dividend of 13.76p per share, which is an increase of 3.9%, in line with the group’s dividend policy of targeting a growth rate of at least RPI inflation each year through to 2020, when its next five-year regulatory period begins.

UU said customers continued to be at the heart of its business, after delivering customer service improvements through innovation and strong operational performance.

These included being named the top water and wastewater company on the UKCSI customer satisfaction system, which is expected to result in a reward of £11m, or more, for the group.

UU says it also provides the widest range of support for customers, doubling the number receiving help with affordability over the current five-year regulatory period, from 2015-2020.

Its plans for the next five-year period, to 2025, include targeted efficiency savings of £1bn, which are expected to lead to reduced water bills for consumers of as much as 10.5%.

The company also aims to help more than 300,000 households out of ‘water poverty’.

Chief executive Steve Mogford said: “Customers are at the heart of everything we do.

“Our approach to affordability and vulnerability, together with our sustained improvements in customer service, position us as a leader in the sector.

“In the most recent UK Customer Satisfaction Index we were the most improved utility company and the highest ranked water and wastewater company.

“The Institute of Customer Service, which assesses excellence in customer service across all sectors, recently awarded us its top Service Mark with Distinction.

“Our approach to innovation and the use of advanced technology from around the world, alongside our capital investment, is delivering better service, greater resilience and improved efficiency.

“Fundamental to this is our pioneering Systems Thinking approach, which continues to unlock innovation opportunities and is making a significant and positive difference to our sustainable, long-term performance.”

He added: “The significant progress we have made positions us well for the remainder of the current regulatory period and beyond.

“We have responded well to the challenges brought about by the impact of more variable weather and have created a platform for continuing strong operational performance.

“We will continue to provide a great service to our customers and create long-term value for all of our stakeholders.”