20th Nov 2019 08:21
(Alliance News) - United Utilities Group PLC on Wednesday said increased finance expenses hurt profit in the first half of its current financial year.
The water company said its pretax profit declined by a quarter to GBP195.1 million in the six months to the end of September from GBP259.6 million a year prior, due to more than doubled finance expenses to GBP193.9 million from GBP90.7 million.
United Utilities explained that the increase in the underlying net finance expense was mainly due to the impact of higher retail price index inflation on its index-linked debt.
The FTSE 100-listed company also said profit was hurt by one-off costs of GBP25 million associated with the "extreme hot and dry" weather incurred during the hot summer of 2018.
More positively, revenue grew by 2.1% in the first half to GBP935.5 million from GBP916.4 million a year before.
"Our focus on innovation, coupled with sustained investment, is helping us to deliver against a challenging set of performance targets, while also protecting and enhancing the environment and supporting our local communities," said Chief Executive Steve Mogford.
United Utilities declared an interim dividend of 14.20 pence a share, up from 13.76p it paid a year prior. It said this was in line with its sixth asset management plan, a regulatory period for UK water companies.
"We are well prepared for the next regulatory period and are already moving forward with our implementation plans. This, together with the sustainable improvements in performance, gives us confidence that we will continue to create long-term value for all our stakeholders," added Mogford.
The stock was trading 1.5% higher in London early on Wednesday at 890.00p a share.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
United Utilities