United Utilities profits rise 11%

28th May 2009 07:39

United Utilities said it posted a robust set of results despite the difficult economic conditions as profits rose 11% in the year.Profit before tax for the 12-months rose to £529.8m from £478.3m last year as revenue increased 3% to £2,435m. But the group slashed total dividends to 32.67p per share from 46.67p previously,. It expects to grow dividends for 2009/ 10 by 5%. "We expect to deliver a sound underlying financial performance in the final year of this regulatory period, although the group faces ongoing revenue and cost pressures," said the group.The group benefited from price increases and tight cost control in the year. Capital expenditure in its regulated water and wastewater business amounted to £740m."Although we are encouraged by the tangible progress we have delivered, we do recognise that there is more to do and we remain strongly focused on delivering further improvements," said the groupThe group has submitted its final business plan for 2010-15 to Ofwat in April 2009, which it believes balances the needs of all its stakeholders and maintains the affordability of customer bills. The group said its service currently costs households approximately £1 per day on average."With this plan, average household bills would increase by seven pence per day in real terms by 2015. We believe this represents excellent value for money, providing our customers with high quality drinking water to meet all their daily needs and for environmentally responsible wastewater collection and treatment," it added.