Revenues for the year ending 31 March 2012 should increase between 3-4 per cent for the full year, slightly below what is allowed by the regulated price rise. The company said that was because customers were switching to meters and commercial volumes in the second half of the year were down. UU reiterated that underlying operating profit would likely be lower in the second half of the year, by how much will be clarified in full year results on 24 May.
With parts of the UK in drought, United Utilities said reservoirs were over 90 per cent full and that it expects to meet leakage targets for the year. The firm said it was on course to meet regulatory outperformance targets.
While group net debt will be slightly higher than its September postion, UU said gearing remained stable and that it has financing headroom into 2014. That has enabled it to repay a £150 million European Investment Bank loan ahead of schedule. The group has now repaid all of the term debt due in the 2010-2015 spending period.
By Hannah Buckley