The company posted an underlying profit of £664.3 million for the year ending March 2015, which was slightly ahead of market expectations.
UU chief financial officer Russ Houlden told Utility Week that lower inflation rates had contributed to the higher underlying profit before tax recorded by the company because this reduced the charges on half of the company’s debt, which is index linked.
He added that operational costs have been “effectively constrained”, by reducing energy consumption, increasing self-generation and limiting other expenses, contributing to the profit increase over the last financial year.
Revenue was also modestly up compared to the previous year, with UU recording £1,720.2 million for 2014/15 compared to £1,688.8 million in 2013/14.
UU chief executive Steve Mogford also told Utility Week that the results over the last price control period, as well as the previous year, have created “a good platform” for the company as it enters the new price control period.
He said: “We have now completed the 2010-15 regulatory period and are pleased to have achieved a strong overall performance for the benefit of all our stakeholders. We have delivered substantial improvements in customer satisfaction and have become a leading operational performer in our sector.
“We have exceeded our regulatory outperformance targets, enabling us to reinvest around £280 million in customer service improvements and in helping customers struggling to pay.”