United Utilities on track

THE North West’s largest quoted company said today it is on track to deliver profits growth despite soaring power costs and bad debts.

United Utilities, which recently announced it is to pump an extra £2m into its fund for struggling customers, said results for the six months to September 30 will be in line with expectations.

Last month the water giant returned £1.5bn to shareholders following the sale of its electricity business, a move which chief executive Philip Green said has allowed the group to create a more efficient capital structure.

Mr Green said its regulated business is expected to deliver good underlying operating profit growth, despite experiencing cost pressures during the first half of the year in areas such as power and bad debts.

He also expects good underlying operating profit growth from non-regulated activities.

United Utilities Water will propose an average annual real price increase of 2.7% from 2010 to 2015, with average household bills expected to increase by just over two per cent in real terms on average each year.
The company will announce its interim results on November 26.