UNITED Utilities said yesterday it was confident of a good financial performance in 2008/09, and said it was trading in line with expectations.

The Warrington-based water giant said it expected its regulated revenue in the year to March 31, 2009 to grow at a rate similar to that outlined in its 2008/9 half-year results, published in November.

It said its regulated water division remained broadly on track to deliver efficiency targets set by the regulator between 2005-10, although it said it continued to face increasing cost pressures in areas such as power and bad debts.

It added it had a robust financing position to cover its projected financing needs until 2011.

“Management is confident of delivering a good underlying financial performance for the year ending March 31, 2009,” it said in a trading statement.

The company said last year it was proposing to raise bills by 2% above inflation for the five years from 2010 to fund a £4bn investment plan.