United Utilities reports good full year results and ups dividend

United Utilities has delivered a rise in full year profit on the back of a strong operational performance, which fed through to the quality of service received by its customers.

United Utilities has delivered a rise in full year profit on the back of a strong operational performance, which fed through to the quality of service received by its customers.

Underlying operating profit for the period totalled £607.1m (2012: £594.1m), while underlying profit before tax rose to £354.3m (2012: £327.0m), reflecting the reduction in the mainstream UK corporation taxation rate.

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Reported profit before tax came to £304.7m up from £280.4m a year earlier, on revenues of £1,636.0m (2012: £1,564.9m), which increased largely as a result of the impact of the regulated price increase for 2012/13 of 5.8% nominal - although this was partially offset by reduced volumes and the ongoing impact of customers switching to meters.

The group issued a dividend of 34.32p for the 12-month period, up from 32.01p the previous year.

Advertisement - Article continues below

Steve Mogford, Chief Executive Officer, said: "Customer satisfaction with our service continues to improve, underpinned by strong operational and environmental performance. We are improving the quality and reliability of our infrastructure and, across the 2010-15 period, expect to reinvest around £200m of capital expenditure outperformance for the benefit of our customers and the environment.

"We accelerated our capital investment programme and invested £787m in the year, taking the total investment in our network, since the start of the regulatory period in 2010, to just over £2.0bn, providing an important contribution to the North West economy. We are delivering a smoother and more effective programme and we expect to invest around a further £800m in 2013/14."

The group also said it remains on track or ahead of schedule in meeting

its five-year regulatory outperformance targets.

Net debt at the year-end totalled £5,451m, compared with £5,076m at March 31st 2012.

Cash and cash equivalents declined to£ 182.5 from £312.1m a year earlier.

Advertisement - Article continues below


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
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

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020
Share tips

Class acts going cheap: buy into Europe’s best bargains

Value investing appears to be making a comeback, while shares on this side of the Atlantic are more appealing on metrics such as price/earnings ratios…
16 Jan 2020

Most Popular


What does the coronavirus crisis mean for UK house prices?

With the whole country in lockdown, the UK property market is closed for business. John Stepek looks at what that means for UK house prices, housebuil…
27 Mar 2020

Coronavirus: what it means for your mortgage or your rent

Ruth Jackson-Kirby looks at all the key questions for owners, renters and landlords affected by the coronavirus crisis.
29 Mar 2020
Small business

Furlough: what does it mean and how does it affect me?

Many companies have “furloughed” employees after they have shut down because of the coronavirus. But what does furlough mean and how does the scheme w…
30 Mar 2020

Buy stocks for the long term, but buy very carefully

After the wild ride of the last couple of weeks, equities are no longer expensive. But if you do decide to buy, be very, very careful indeed, says Mer…
30 Mar 2020