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- United Utilities reported that its half-year turnover rose 10.9% to £1.1bn
- The company’s underlying operating profits rose 23.8% to £335.7m.
United Utilities expects annual revenue to grow by around 10 per cent this year as the north-west England water company benefits from higher bills for consumers.
Britain’s largest listed water company reported that its turnover rose 10.9 percent to £1.1 billion in the six months to September thanks to rising household bills.
This helped its underlying operating profits rise 23.8 per cent to £335.7 million.
Improved growth targets for the year put United Utilities on track to meet analyst revenue estimates of £2.13bn for the year to the end of March 2025.
Result: United Utilities reported that its turnover rose 10.9 per cent to £1.1bn in the six months to the end of September thanks to rising household bills.
Reported pre-tax profits fell 12.1 percent to £140.6 million, which United attributed to a £114 million increase in net financial expenses that was largely due to a drop in gains from the fair value of debt and derivatives.
United Utilities, which supplies water to 7.3 million people across the north-west of England, also revealed its net debts had risen by around £500 million to more than £9 billion.
However, the FTSE 100 company increased its half-yearly dividend by 4.2 per cent to 17.3 pence per share.
“We have delivered a strong set of operational and financial results,” said Louise Beardmore, CEO of United Utilities.
He added: “Looking ahead, we will continue to evolve our plan for the next five years, with ambitious investment proposals to build a stronger, greener and healthier North West.”
“This will allow us to invest significantly in new infrastructure, support 30,000 jobs and align with the Government’s ambitions for economic growth in the region.”
Between 2025 and 2030, the company intends to spend £13.7 billion on improving its infrastructure to try to reduce leaks by a quarter and storm overflows by 60 per cent.
The British water sector has come under intense criticism in recent years for its poor record on wastewater discharges and the high debts it has accumulated while paying large dividends to shareholders.
Water companies in England and Wales discharged untreated wastewater into rivers about 464,000 times in 2023, according to data from the Environment Agency.
Last week, United Utilities announced plans to accelerate spill reduction work by making improvements at 700 additional sites.
It came shortly after the BBC claimed the company illegally dumped more than 140 million liters of waste into Lake Windermere over a three-year period.
United Utilities Stock They rose 0.9 per cent to £10.58 on Thursday morning and have remained stable over the past 12 months.
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