United Utilities Group PLC (LON:UU.), today announced half year results for the six months ended 30 September.
Customers continue to be at the heart of everything we do
· Delivering customer service improvements through innovation and strong operational performance
· Top water and wastewater company on UKCSI and now expect an AMP6 SIM reward of £11m or more
· Providing the widest range of support for customers, doubling the number receiving help with affordability over AMP6
Sustained improvements in operational performance
· Systems Thinking unlocking innovation opportunities, underpinning long-term operational improvement
· Achieved industry leading environmental and water quality performance scores
· Sustained gains in efficiency delivering totex outperformance of £100m against our AMP6 scope
· Remain on track to deliver a cumulative AMP6 ODI reward
Strong plans for AMP7 and beyond
· Ambitious PR19 business plan delivering £1bn efficiencies, further reducing bills whilst improving service
· 10.5% real bill reduction and targeted support helping over 300,000 households out of water poverty
· Builds on our performance in AMP6 giving us confidence heading into AMP7 and beyond
· Delivers for customers and creates long-term value for all stakeholders
Strong financial performance
· Underlying operating profit of £367.8m (reported operating profit of £339.1m)
· Interim dividend in line with AMP6 growth policy
· Robust capital structure and strong pensions position providing resilience and future financial flexibility
Key financials
|
|
Six months ended |
|
|
30 September 2018 |
30 September 2017 |
|
|
Revenue |
£916.4m |
£876.0m |
|
Reported operating profit |
£339.1m |
£341.8m |
|
Underlying operating profit1 |
£367.8m |
£344.0m |
|
Reported profit after tax |
£212.5m |
£197.4m |
|
Underlying profit after tax1 |
£196.9m |
£160.1m |
|
Interim dividend per ordinary share (pence) |
13.76p |
13.24p |
|
Net regulatory capital spend |
£392.7m |
£394.4m |
|
RCV gearing2 |
60% |
61% |
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 below
2 Regulatory capital value (RCV) gearing calculated as group net debt/United Utilities Water’s shadow RCV (outturn prices)
Steve Mogford, United Utilities Chief Executive Officer, said:
“Customers are at the heart of everything we do. Our approach to affordability and vulnerability together with our sustained improvements in customer service position us as a leader in the sector. In the most recent UK Customer Satisfaction Index we were the most improved utility company and the highest ranked water and wastewater company. The Institute of Customer Service, which assesses excellence in customer service across all sectors, recently awarded us its top Service Mark with Distinction.
“Our approach to innovation and the use of advanced technology from around the world alongside our capital investment is delivering better service, greater resilience and improved efficiency. Fundamental to this is our pioneering Systems Thinking approach which continues to unlock innovation opportunities and is making a significant and positive difference to our sustainable, long-term performance.
“The significant progress we have made positions us well for the remainder of the current regulatory period and beyond. We have responded well to the challenges brought about by the impact of more variable weather and have created a platform for continuing strong operational performance. We will continue to provide a great service to our customers and create long-term value for all of our stakeholders.”
