United Utilities still on track

Jan 31 2008 by Alex Turner, Liverpool Daily Post

WARRINGTON-BASED United Utilities has boosted its third-quarter trading thanks to efficiency measures and bill increases of 8.3%.

A trading update for the period October 1 to January 29, said the company’s performance was in line with the group’s expectations.

The water company added the price increases will help it invest in its network.

This month it secured an 18-month extension to its contract with British Gas Trading to supply and service meters, which is worth an additional £45m.

It also claimed it was on course to meet Ofwat’s leakage target of 465 megalitres per day.

The statement said: “The group's business improvement initiatives continue to progress well and United Utilities Water remains on track to deliver its regulatory efficiency targets.

“With clarity on future regulated revenue flows, management is confident of delivering profits in line with its expectations for the year.”

In the first half of the financial year, to Septmber 30, pre-tax profits were £252m.

In November the group received £1bn from the sale of its former Norweb electricity distribution business and plans to return £1.5bn to its shareholders.

United Utilities has also outlined a new dividend policy which will see the dividend per share reduced by 30% in 2008-09.