UU confident of good results

WATER company United Utilities said current trading is in line with its expectations.

In an update ahead of its annual meeting in Manchester the Warrington-based group said revenue is higher, reflecting the regulated price increases for 2013/14, but it was still seeing the impact of difficult economic times in its commercial business.

“As planned, capital investment has continued at high levels as United Utilities invests to maintain and improve services for customers and deliver further environmental benefits, as well as providing a positive contribution to the regional economy.

“Regulatory capital investment for 2013/14, including infrastructure renewals expenditure, is expected to be around £800m,” the group said.

The FTSE 100 company said it expected to produce “good underlying results” in the next financial year and would maintain its recent focus on boosting customer service performance.

This week it emerged that UU, one of the biggest landowners in the region with 141,000 acres from Cheshire to Cumbria , is in talks with shale gas explorer Cuadrilla over potential exploration of shale gas on its land.

Cuadrilla, which halted its fracking process in 2011 after causing small tremors in Blackpool, has spoken to the water company about six possible sites for fresh drilling.

UU though has stressed that discussions are at an early stage and the parties are “looking at potential opportunities to work together”.