24th Sep 2014 06:49
LONDON (Alliance News) - United Utilities Group PLC Wednesday said it is currently trading in line with internal expectations for the six months ending September 30, while it remains confident of delivering its 2010-15 regulatory outperformance targets.
In a trading statement, United Utilities said underlying operating profit for the first half 2014/15 is expected to be similar to the first half of 2013/14.
"This principally reflects an allowed regulated price rise offset by the impact of the previously announced special customer discount and the expected increase in depreciation and other cost pressures, including bad debt," the company said.
The water company said underlying net finance expense for the first half of 2014/15 is expected to be slightly lower than a year earlier, primarily reflecting the impact of lower retail price index inflation on its index-linked debt.
FTSE 100-listed United Utilities also said continued investment in its asset base will result in slightly higher group net debt at the end of September compared with March 31.
"This principally reflects regulatory capital expenditure, payment of the 2013/14 final dividend and payments in relation to interest and taxation, largely offset by operational cash flows," the company said.
At an operating level, the company said it has delivered significant improvements in customer service over the last few years and "we continue to make progress, supported by a further reduction in customer complaints."
United Utilities will announce its half-year results on November 26.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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