United Utilities has announced an anticipated revenue surge of approximately 10% for the financial year ending in 2025, following a robust profit increase in its first half.
The FTSE 100-listed company, which provides water services to the North West, disclosed an 11% rise in underlying revenue for the six months leading up to September’s end, reaching £1.1 billion, up from £975 million in the corresponding period the previous year, as reported by City AM.
This uptick, driven largely by higher consumer bills, propelled the underlying operating profit up by 24% to £335.7m.
Chief Executive Louise Beardmore commented on the strong performance, “We have delivered a robust set of operational and financial results,” as the company declared an interim dividend of 17.28p per share, marking a 4.2% increase from the prior year.
Looking at the full year, United Utilities anticipates that the increased bills will contribute to around a 10% growth in revenue.
Nevertheless, the company is bracing for operating costs to outpace inflation due to business rates and regulatory charges, with capital expenditure for 2024/25 forecasted to be between £950 million and £1.1 billion.
These financial revelations come at a time when UK water firms are under heightened regulatory examination amid widespread sewage discharges into the nation’s waterways.
Environmental campaigners have accused United Utilities of unlawfully releasing sewage into Lake Windermere.
In its financial statement, the company highlighted its expedited efforts to cut down on spillages, aiming to enhance over 1,100 storm overflows by 2030.
“Improving rivers continues to be a key area of focus. We are already making progress at reducing spills from storm overflows, having commenced a programme of accelerated solutions,” Beardmore stated.
“Our five-year plan builds on this, with a step-change in investment, and last week we announced that we would go further and faster, accelerating more work to reduce spills,” she added.
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