27th Mar 2018 09:00
LONDON (Alliance News) - United Utilities Group PLC on Tuesday said current trading is in line with expectations, and it expects to report revenue and profit growth for its financial year ending on Saturday.
United Utilities said revenue in the year to the end of March will be "slightly" higher than the previous year, when revenue amounted to GBP1.7 billion, reflecting the accounting impact of the Water Plus business retail joint venture formed with Severn Trent PLC in June 2016.
Underlying operating profit is expected to be "moderately higher" than GBP622.9 million the year before as infrastructure renewals expenditure has increased slightly in the second half of the year. However, the company said that for the full year, it expects infrastructure renewals expenditure to remain unchanged. It also maintained its Outcome Delivery Incentives guidance.
RPI inflation has increased this year, which had the beneficial effect of increasing the company's regulatory capital value by GBP400.0 million, the company said. United Utilities expects the underlying net finance expense to be around GBP40.0 million higher than GBP237.0 million reported prior year.
"As the company continues to invest in its asset base, we expect a small increase in group net debt at 31 March 2018 compared with the position as at 30 September 2017," United Utilities added.
Gearing remains "comfortably" within the company's target range of 55% to 65% of net debt to regulatory capital value.
Full year results will be announced on May 24.
Shares in United Utilities were trading 0.1% higher at 656.80 pence per share on Tuesday.
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