UU on track to meet regulatory targets

United Utilities said it has seen a marked improvement in customer satisfaction in the last year or so, and it is on track to meet regulatory out-performance targets.

The utilities provider's revenue in the year to March 31st rose to £1,564.9m from £1,513.3m the year before. Underlying profit before tax dipped to £327.0m from £329.2m the year before, slightly ahead of expectations.

"Our focus on operational performance is delivering further service improvements for customers. Our revised customer handling arrangements have led to a marked improvement in customer satisfaction, resulting in significant progress on Ofwat's service incentive mechanism," said Steve Mogford, Chief Executive Officer of United Utilities.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

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

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

Sign up

There is good news for we Britons getting drenched in the current drought, as Mogford said the group met its regulatory leakage target for the sixth consecutive year, and the group's water supply and demand balance remains robust, with reservoirs in line with typical levels for this time of year.

"We are pleased with the recent progress we have made and believe there is plenty of opportunity to deliver further improvements," Mogford added.

The final dividend of 21.34p is an increase 6.7% on the year before. The full year pay-out is also up 6.7% at 32.01p, versus 30p the year before. The group has a policy of increasing dividends by two percentage points above retail price inflation.

JH