Revenue gains offset by depreciation at United Utilities

United Utilities, the north west of England water company, says increases in revenue will not filter through into significantly higher profits.

In a management statement covering the period between April 1st and July 26th the company says while revenues have increased, this will be "largely offset by higher depreciation ... and higher levels of infrastructure renewals expenditure and other operating costs".

Article continues below

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

The statement also says United has paid £50m of a previously agreed pension deficit payment earlier than first thought, reflecting a strong underlying financing position.

Net debt now stands at around £146m and United has vowed to continue paying dividends at 2% above the Retail Prices Index.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.