Customer focus delivers further improvements
· A leading company for customer satisfaction
· Doubling the number of customers receiving help with affordability over AMP6
Investing for customers, the environment and driving operational performance
· Accelerated investment delivering improved operational performance
· Sector leading on environmental performance for another year
· Systems Thinking driving efficiency and resilience; leading position heading into PR19
· Good performance on ODIs
Financial performance in line with expectations
· Underlying operating profit of £344.0m (reported operating profit of £341.8m)
· Interim dividend in line with AMP6 growth policy
· Sector leading, low risk pension position through effective hedging
Key financials
|
Continuing operations |
Six months ended |
|
|
30 September 2017 |
30 September 2016 |
|
|
Revenue |
£876.0m |
£853.0m |
|
Underlying operating profit1 |
£344.0m |
£312.5m |
|
Reported operating profit |
£341.8m |
£303.6m |
|
Underlying profit after tax1 |
£160.1m |
£151.5m |
|
Reported profit after tax |
£197.4m |
£202.6m |
|
Interim dividend per ordinary share (pence) |
13.24p |
12.95p |
|
Net regulatory capital spend |
£394.4m |
£383.5m |
|
RCV gearing2 |
61% |
62% |
1 Underlying profit measures have been provided to give a more representative view of business performance and are defined in the underlying profit measure tables
2 Regulatory capital value or RCV gearing calculated as group net debt/United Utilities Water's shadow RCV (outturn prices)
Steve Mogford, Chief Executive Officer, said:
“This has been a strong first half performance in which we have delivered further value for customers and shareholders.
“We continue to put customers first, achieving significant further improvements in customer satisfaction, and positioning us as a leader in our sector. This is a significant achievement in a region seeing some of the highest levels of deprivation in the country. Average bills are set to reduce in real terms over the ten year period to 2020 and we expect to double the number of customers we help through our award winning affordability schemes over AMP6.
“Our innovative Systems Thinking approach to running the business is delivering increasingly efficient and resilient services. By investing earlier than our original plans for this regulatory period we are accelerating the delivery of value to customers and shareholders, and positioning the business as sector leading as we approach the next regulatory cycle.
“As we turn our attention to the next price review for the period 2020 to 2025, we are engaging with customers across our region to understand their needs and preferences and to formulate plans that best satisfy those needs. Affordability will be key, balanced against resilience to climate change and population growth in our region.”