28th Sep 2018 09:21
LONDON (Alliance News) - United Utilities Group PLC on Friday said trading in the first half of its financial year was in line with expectations but hot weather drove up costs.
United Utilities said that in the six months to September its revenue was above the same period last year, reflecting regulatory revenue changes.
The company incurred higher operating costs during the period, which the FTSE 100-listed water and wastewater utility expects to record as an adjusted item. As such, underlying profit for the first half of its year is likely to exceed the previous year despite higher-than usual infrastructure renewals expenditure.
Net group debt is expected to be slightly higher at September 30 than at March 31. However, underlying net finance expense is likely to be around GBP30 million below its previous half year.
United Utilities said it expects to invest a further GBP80 million to safeguard its water supplies. This includes GBP40 million in operating costs and infrastructure and GBP40 million in capital expenditure.
"Our responsible approach to financial risk management continues to deliver benefits including a strong balance sheet, a stable international financial reporting standards pension surplus and gearing comfortably within our target range of 55% to 65% net debt to regulatory capital value, supporting a solid A3 credit rating for United Utilities Water with Moody's," the company said.
Shares in United Utilities were down 0.1% at 692.40 pence early Friday.
Related Shares:
United Utilities