United Utilities’ revenues are on track to reach £2 billion after water bill increases
- United Utilities reported half-year sales rose 10.9% to £1.1 billion
- The company’s underlying operating profit rose 23.8% to £335.7 million
United Utilities expects annual revenue to grow by around 10 percent this year as the north-west England water company benefits from higher consumer bills.
Britain’s largest listed water company reported that its turnover rose 10.9 percent to £1.1 billion in the six months ended September, thanks to higher household bills.
As a result, underlying operating profit rose 23.8 percent to £335.7 million.
Upgraded growth targets for the year leave United Utilities on track to meet analyst revenue estimates of £2.13 billion for the year to the end of March 2025.
Result: United Utilities reported sales rose 10.9 percent to £1.1 billion in the six months ending September, thanks to higher household bills
Reported pre-tax profits fell 12.1 percent to £140.6 million, which United blamed on a £114 million increase in net finance costs that largely stemmed from a decline in fair value gains on debt and derivatives.
United Utilities, which supplies water to 7.3 million people in north-west England, also announced that its net debt rose by around £500 million to more than £9 billion.
Still, the FTSE 100 company increased its half-yearly dividend by 4.2 percent to 17.3 pence per share.
“We delivered robust operational and financial results,” said Louise Beardmore, CEO of United Utilities.
She added: ‘Looking ahead, we continue to develop our plan for the next five years, with ambitious investment proposals to build a stronger, greener and healthier North West.
‘This will see us invest significantly in new infrastructure, supporting 30,000 jobs and aligning with the Government’s ambitions for economic growth in the region.’
Between 2025 and 2030, the company plans to spend £13.7 billion on upgrading its infrastructure to try to reduce leaks by a quarter and storm overflows by 60 percent.
The UK water sector has come under intense criticism in recent years for its poor record on sewage spills and the high debts it has accrued while paying significant dividends to shareholders.
According to data from the Environment Agency, water companies in England and Wales discharged untreated sewage into rivers around 464,000 times in 2023.
Last week, United Utilities announced plans to accelerate work on reducing spills by making improvements at an additional 700 locations.
It came shortly after the BBC alleged the company had illegally pumped more than 140 million liters of waste into Lake Windermere over a three-year period.
United Utilities shares were up 0.9 per cent to £10.58 on Thursday morning and have leveled off over the past 12 months.
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