26th May 2016 06:18
LONDON (Alliance News) - United Utilities Group PLC on Thursday said profit fell in line with its expectations in its recent financial year, as the water company accelerated its investment plans.
The FTSE 100 utility said its operating profit for the year to the end of March was GBP567.9 million, down 13% from GBP653.3 million. Underlying operating profit was GBP604.1 million, down from GBP664.3 million and in line with the company's expectations.
Revenue rose 0.6% to GBP1.73 billion from GBP1.72 billion the year before.
The group said it accelerated its investment plans over the course of the year in order to deliver early operational benefits in the new regulatory period. The group also identified and is implementing a range of further efficiency initiatives in order to meet its total spending allowance under the regulatory regime.
"We accelerated our investment programme to deliver early operational benefit and exceeded our expectations by achieving a small reward across our outcome delivery incentives, against a tough set of targets," said Chief Executive Steve Mogford.
United Utilities will pay a total dividend for the year of 38.45 pence, compared to 37.70p a year earlier.
"Our progress over this first year of the new regulatory period shows we are well placed to deliver further value for customers, shareholders and the environment, underpinned by a robust capital structure and good credit ratings," Mogford added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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