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United Utilities Group PLC on Friday said it expects revenue to grow in its soon-to-end financial year.
However, this rise in revenue - which is expected to be around 3% - has been offset by higher underlying operating costs due to inflation, the Warrington-based water company explained. Thus, underlying operating profit for the financial year ending March 31 will be broadly the same as the year before.
United Utilities expects its underlying net finance expense to be around £175 million higher than a year ago, when it was £133 million.
It also sees increased net debt due to inflation accretion on index-linked debt.
‘However, with inflation at a 30-year high, we will benefit from higher indexation increasing the regulatory capital value of the regulated business at the year-end, as well as increasing future revenues,’ the company added.
The firm's full-year results will be released on May 26.
United Utilities shares were 1.1% higher at 1,077.00 pence each in London on Friday morning.
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