UU final divi to be hiked 5%

25th Mar 2010 07:20

Water company United Utilities said its regulated business is on track to deliver a modest increase in underlying operating profit in the current financial year.Capital expenditure for the year is expected to be more than £600m, in line with the company's investment profile for the 2005-10 period.Meanwhile, United Utilities (UU) expects capital investment, including infrastructure renewals expenditure, in 2010/11 to be substantial as the company 'aims for a smoother capital delivery profile across the five year period' compared to 2005-10.Although demand for water has dipped customer satisfaction continues to improve, and UU is on course to record its highest satisfaction score in several years.The non-regulated business is expected to deliver good underlying operating profit growth for the year ending 31 March 2010 reflecting tight cost control and a strong performance from its international activities.The group's other segments, including the property services arm, are expected to make a small operating loss.Borrowings, net of cash, are expected to end the financial year at a similar level to the end-September 2009 figure.The group expects to increase the final dividend by 5%, which would make the full year pay-out 34.3p. Next year the group intends to rebase the full-year dividend pay-out to 30p and thereafter to increase the dividend by 2% above the annual inflation rate as measured by the UK Retail Prices Index. 'We are well prepared for the 2010-15 regulatory period. With the extensive efficiency plans we are implementing and the low cost of the group's debt portfolio, we believe we can deliver outperformance across a broad range of areas,' said Philip Green, the UU chief executive.