United Utilities hails year of solid progress
UNITED Utilities, the North West’s water supplier, has reported a year of revenues and earnings growth combined with continued investment and operational improvements.
The Warrington-based company, the region’s sole FTSE-100 member, said it has invested £836m in the year to the end of March, in improving the water network, and would be investing around £800m in the current financial year.
Revenue in the year rose by £69m to £1.7bn, mainly as a result of the
impact of the regulated price increase for 2013/14 of 4%. Underlying operating profit- increased by £37m to £641m as a result of the revenue growth and tight cost control, the company said.
Underlying profit before tax also grew, around 10%, or by £38m, to £390m,
Chief executive Steve Mogford told TheBusinessDesk.com: “We’re very pleased with the progress in terms of operational performance and customer service, Three years ago we were 19th out of 19th of all the water companies, now we are joint seventh.
“The business market has opened up for competition in Scotland and we launched there 18 months ago and have become the second-largest player behind the incumbent provider. We have around 150 customers across around 2,000 sites, which is pleasing.”
Mr Mogford said UU would be able to “learn important lessons” from its experience north of the border, as the business water supply market is being opened for competition in 2017.
He said UU was working closely with regulator Ofwat, ahead of submitting itss revised business plan for the next regulatory period. Customers will benefit from below inflation growth in average household bills for the decade to 2020, he added.
