UU reveals new investment plans as profits dip
WATER supply and treatment group United Utilities has revealed a slight dip in profits and vowed to carry on spending on major infrastructure improvements.
The Warrington group – the region’s only FTSE 100 member – said two major projects in Manchester and Liverpool, worth more than £300m alone, would create jobs and boost the region’s economy in the next year,
In Liverpool it will create 350 jobs while a £200m expansion to its existing wastewater treatment works is built. UU, which has recently received planning permission for the project at Wellington Dock on the River Mersey said the investment would enhance the capacity of the treatment works to handle up to 11,000 litres of waste water per second and the treated water leaving the plant will be of a higher standard.
The investment in Davyhulme, Trafford, is in a new £100m sludge processing centre at the wastewater treatment works there.
UU said the new facility will provide a range of benefits including energy self-sufficiency for the whole site, and greater flexibility regarding the disposal of the sludge.
Chief executive Steve Mogford said the two projects were the most significant for the next year, which will see £700m invested in the region in the next 12 months.
Group profits in the year to the end of March were some £2m lower than last year at £327m – but ahead of City forecasts – while group revenue rose by £52m to £1,56bn. Profits were dented by the infrastructure investment and by more customers switching to meters and lower commercial volumes due to the recession.
Despite the slip in profits a final dividend of 21.34p was revealed, an increase 6.7% on 2011. This took the full year pay-out up 6.7% at 32.01p, (30p in 2011).
UU said it had spend £680m during the year on regulatory capital investment.
Chief executive Steve Mogford said the results were “good in a tough economic environment” and highlighed continued operational improvements and better customer service standards.
“Our revised customer handling arrangements have led to a marked improvement in customer satisfaction, resulting in significant progress on Ofwat’s service incentive mechanism.
“We have met our regulatory leakage target for the sixth consecutive year and our water supply and demand balance remains robust, with reservoirs in line with typical levels for this time of year,” he said.
