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United Utilities profits down after restructuring

United Utilities has experienced a dip in revenue and profit after recently disposing of its non-regulated assets, its interim results for the six months ended September 30 showed yesterday.

The company’s revenue was down 3% from £786.6M in the six months ended September 30 2009 to £762.4 this year, while pre-tax profit fell 36% from £189.9M in 2009 to £122.2M in 2010.

These results were reported as “slightly ahead of management expectations”. United Utilities reported a good start to new regulatory period, with capital investment of £307M in the first half.

Chief executive Philip Green said: “We are confident of delivering outperformance over the 2010-15 period with financing outperformance already secured. We have continued to make high levels of investment in our water and wastewater assets.

“United Utilities has a robust capital structure and the business should benefit from predictable regulated revenue streams over the next five years.”

Over the last four years, United Utilities has reshaped its portfolio to dispose of its non-regulated assets and become a focused regulated UK water and wastewater company. The programme of reshaping was completed earlier this month.

The company is close to completing its £120M West East Link water pipeline to connect Merseyside and Greater Manchester.

Readers' comments (1)

  • RFP

    United Utilities have been uncertain, both now and in the past, as to which direction to 'set-course'. Profits in the regulated business are there to be made but can only through financial injection not starvation. Those profits will not be as high as what could be made in a successful non-regulated business but they are guaranteed and more secure. Make your minds up!

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