Water firm United Utilities (UU) has reported higher than expected underlying operating profits for the year, partly due to savings on infrastructure costs.
Underlying operating profits for the group, which supplies water to areas in northern England, rose by 3% to £623M for the year ending 31 March. This was partly a result of lower infrastructure renewals spending.
But revenue fell £26M to £1.7bn due to the impact of UU’s new joint venture for business customers, WaterPlus, on accounting.
“Our performance in the early part of this regulatory period puts us in an industry leading position and demonstrates that we are well placed to deliver further value for customers, shareholders and the environment. This is supported by a robust capital structure and good credit ratings,” said UU chief executive Steve Mogford.
At the same time, the group announced £100M of additional investment over the next three years to improve resilience across its network.