On target trading for United Utilities

UNITED Utilities has reported a performance in line with expectations in its latest trading up date.

Its capital investment  for 2014/15, including infrastructure renewals and transitional investment, is expected to be more than £850m.

The Warrington-based water supply sewage treatment company said it had delivered significant operational performance and customer service improvements and exceeded its performance targets over the last five years.

Its strong performance was recognised in Ofwat’s final determination in December with no penalties incurred.

Revenue this year is expected to be slightly higher than last year, reflecting the regulated price allowance for 2014/15 partly offset by the impact of the previously announced one-off special customer discount of around £20m.

A statement issued by the company said: “We expect a modest increase in underlying operating profit for 2014/15, compared with last year, as we continue to tightly manage our cost base despite the expected increase in depreciation and other cost pressures, including bad debts.”

United Utilities will announce its full year results on May 21.