United Utilities ups final dividend as profit steams ahead

22nd May 2014 07:05

- Annual profits rise, dividend increase- On track for revised business plan for Ofwat- Scope for further improvementUK water and wastewater giant United Utilities increased its dividend payment five per cent as full-year profit grew and it believes there is scope to deliver further improvements.Underlying operating profit rose to £641.3m for the year ended March 31st from £604.2m a year earlier. Revenue for the period rose to £1.7bn from £1.6bn before.Chief Executive Officer Steve Mogford said: "We believe there is scope to deliver further improvements. We are continuing to improve the quality, reliability and resilience of our assets and increased capital investment in our network to £836m this year. We are reinvesting around £280 of our outperformance, providing benefits for customers and the environment."A total dividend of 36.04p has been offered, up from 34.32p last time. The group also confirmed it is working closely with Ofwat, ahead of submission of its revised business plan at the end of June. Customers are set to benefit from below inflation growth in average household bills for the decade to 2020, it explained.Ofwat has said it will cut back the planned rise in water bills of the country's major suppliers.United Utilities said RCV gearing, a method of utility pricing, is 2% lower at 58%, well within Ofwat's assumed range.CJ