26th Mar 2019 07:20
LONDON (Alliance News) - United Utilities Group PLC on Tuesday said the dry summer of 2018, coupled with pension and restructuring costs, will have a slight impact on its annual profit.
The "exceptional" period of dry weather during the summer of 2018, alongside guaranteed minimum pension equalisation and restructuring costs, mean United Utilities will book exceptional items of GBP52 million for its financial year ending March 31.
Some GBP29 million of that was recognised in interim figures.
On an underlying basis, United Utilities said it expects operating growth, while revenue is also guided to grow, but no exact guidance was given for either.
In its prior financial year, United Utilities achieved GBP645.1 million of underlying operating profit on GBP1.74 billion in revenue.
Net finance expenses are guided to fall by around GBP45 million, while net debt will rise slightly as of March 31 from September 30 due to investment.
However, the balance sheet is "strong", the utility continued, and gearing is well within its 55% to 65% target range.
United Utilities also said it is "pleased" to have been given fast-track status by UK regulator Ofwat regarding its 2020 to 2025 business plan, getting the "highest grades" overall.
Ofwat published its business plan review at the end of January, praising United Utilities as well as peers Severn Trent PLC and Pennon Group PLC's South West Water.
Related Shares:
PennonSevern TrentUnited Utilities