United Utilities trading in line despite tough climate

Tough market conditions in United Utilities' third quarter meant that the company was unable to increase revenue at the same rate as price rises.

Tough market conditions in United Utilities' third quarter meant that the company was unable to increase revenue at the same rate as price rises.

The water group said on Wednesday that trading since the first half (October 1st) has been in line with its expectations, with revenue continuing to increase at a rate "slightly below the slowed regulated price rise for 2012/13".

This reflects the ongoing impact of a tough economic climate on commercial volumes, the firm said. Furthermore, depreciation, power and other costs have also risen as expected which mostly offset the increase in revenue.

The company said that it continues to make "good progress" on its regulatory capital investment programme and remains on track to invest around £750m in its asset base in 2012/13.

"United Utilities is confident of delivering a good underlying financial performance for the year ending March 31st 2013 and continues to be on track to meet its 2010-15 regulatory outperformance targets," the firm said.

"The company remains strongly focused on building on its recent operational and customer service progress and sees plenty of scope to deliver further improvements."

Shares were up 0.81% at 746p in early trading on Wednesday.

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Most Popular

Why we won’t see a house-price crash in 2021
House prices

Why we won’t see a house-price crash in 2021

Lockdown sent house prices berserk as cooped up home-workers fled for bigger properties in the country. And while they won’t rise quite as much this y…
18 Jan 2021
Inflation is the easiest way out of this – just don’t expect politicians to admit it
Inflation

Inflation is the easiest way out of this – just don’t expect politicians to admit it

The UK government borrowed £34.1bn in December, a record amount for that month. Britain's debt pile now amounts to 100% of GDP. How are we going to pa…
22 Jan 2021
When will the US stockmarket bubble burst?
US stockmarkets

When will the US stockmarket bubble burst?

With US stocks more expensive than before the Wall Street crash of 1929, there are growing signs of “mania”. But what will push markets over the edge?
22 Jan 2021