22nd May 2014 08:00
LONDON (Alliance News) - United Utilities Group PLC Thursday posted a 75% increase in pretax profit during its full year, as the company benefited from expected revenue increases due to strong operational performance, even before receiving GBP157 million in a deferred tax credit.
The major water firm said its pretax profit increased to GBP544.7 million for the twelve months ended March 31 from GBP311.8 million the previous year, as revenues increased 3.7% to GBP1.70 billion from GBP1.64 billion.
The company announced in March that it expected to report revenue and underlying profits that are higher than the year before, on the back of continued improvements in its customer service operations, stating that it remained ahead of schedule in delivering its 2010-15 regulatory out-performance targets.
In an interim management statement provided during January, the company said revenues had increased since October 1, and it has headroom to cover projected financing needs into 2016 following the recent agreement of a GBP50 million loan with the European Investment Bank.
On Thursday, the water firm said that revenues were improved due to a 4.0% nominal regulated price increase for 2013/14.
United Utilities also noted that its net profit more than doubled to GBP739.4 million from GBP302.4 million, as it was paid USD156.8 million in deferred taxation credit due to a change in its taxation rate.
As such, the company proposed a final dividend of 24.03 pence per share, a 5% increase on the previous year, bringing its total dividend for the year to 36.04 pence, also up 5% from 34.32p the year before.
United Utilities said it has made progress on its regulatory capital investment programme, with GBP836 million invested in its asset base during the period. The company added that it now plans reinvestment of around USD280 million in out-performance cash to provide customer and environmental benefits.
The company said its investment helps to maintain and improve services for customers, delivers further environmental benefits and provides a significant contribution to the regional economy.
United Utilities shares were up 0.6% to 857.50 pence early Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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