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.

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.

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.

NR

Recommended

How to profit from India’s high-tech recovery
Share tips

How to profit from India’s high-tech recovery

Professional investor David Cornell of the India Capital Growth Fund, selects three of his favourite Indian stocks to buy now.
27 Sep 2021
Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
What really causes inflation? Here’s what prices since 1970 tell us
Inflation

What really causes inflation? Here’s what prices since 1970 tell us

As UK inflation hits 3.2%, Dominic Frisby compares the cost of living 50 years ago with that of today, and explains how debt drives prices higher.
15 Sep 2021
The times may be changing, but don’t change how you invest
Small cap stocks

The times may be changing, but don’t change how you invest

We are living in strange times. But the basics of investing remain the same: buy fairly-priced stocks that can provide an income. And there are few be…
13 Sep 2021