23rd Nov 2016 07:34
LONDON (Alliance News) - United Utilities Group PLC on Wednesday said its operating profit grew in the first half while its revenue edged lower, adding it remains on track to meet its expectations for the full year.
The FTSE 100 water utility said it made an operating profit of GBP303.6 million in the half-year to the end of September, up from the GBP278.3 million made a year before. Pretax profit was down to GBP158.4 million from GBP215.6 million, due to higher financing expenses.
Revenue edged down to GBP853.0 million from GBP857.0 million, in line with its expectations due to an accounting impact from the joint venture with blue-chip rival Severn Trent PLC, which completed in June. This was partially offset by its allowed regulatory revenue changes.
United Utilities said it remains on track to meet its delivery incentive targets and said it is continuing to ramp up its investment plans. It spent GBP383.0 million on its network in the first half, with around GBP800.0 million in spending planned for the full year.
The group declared an interim dividend of 12.95 pence per share, up 1.1% year-on-year.
"This has been a strong first half performance in which we made significant progress towards meeting our customer, environmental and financial targets," said Steve Mogford, United Utilities' chief executive.
"Overall, we are encouraged by our progress in the early part of this regulatory period. We have a robust financial position and are confident that we can deliver our targets for both customers and shareholders," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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