27th Nov 2013 08:18
LONDON (Alliance News) - United Utilities Group PLC Wednesday reported an increase in pretax profit and revenue for the first half, as it promised it would not increase UK household bills by more than inflation next year.
The water company posted pretax profit of GBP335.0 million for the period ended September 30, up from GBP139.4 million a year earlier, as underlying pretax profit increased to GBP215.7 million from GBP188.7 million in the comparable period.
United Utilities attributed this to a GBP29 million increase in underlying operating profit slightly offset by a GBP2 million increase in underlying net finance expense.
The company said "this underlying measure adjusts for the impact of one-off items, principally from restructuring and reorganisation within the business, and fair value movements in respect of debt and derivative instruments."
Revenue increased slightly to GBP853.3 million, from GBP822.9 million in 2012, as the company benefited from an increase in household water and sewerage bills, approved by the regulator.
The utility said it met its leakage target for the seventh year in a row and hopes to meet its environmental performance target following an assessment from the Environment Agency.
The Warrington-based company said its Regulatory Capital Value (RVC) gearing dipped to 59% from 60% last year.
Going forward, United Utilities said it was on track to invest around GBP800million this year on its network and on maintaining and improving services.
It also hopes to keep customer bills at an affordable level following pressure on utility companies to justify large profit and bill increases.
?We are discounting prices next year so that customers do not pay the full allowed price increase,
meaning that, on average, bills will go up by no more than inflation, Chief Executive Steve Mogford said in a statement.
"We are also committing to further support for customers struggling to pay. This is in addition to the previously announced reinvestment of GBP240 million of outperformance for the benefit of our customers and the environment," he added.
The board declared an increase in the interim dividend to 12.01 pence from 11.44 pence in 2012.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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