United Utilities Group (UU.)

Sector:

Utilities

Index:

FTSE 100

1,022.50p
   
  • Change Today:
    -20.00p
  • 52 Week High: 1,125.00p
  • 52 Week Low: 958.80p
  • Currency: UK Pounds
  • Shares Issued: 681.89m
  • Volume: 2,070,450
  • Market Cap: £6,972m
  • RiskGrade: 118

United Utilities' profit drops on lower revenue

By Josh White

Date: Wednesday 25 Nov 2020

LONDON (ShareCast) - (Sharecast News) - United Utilities' first-half profit fell 16% as price controls took effect and Covid-19 reduced water use by business customers.
The FTSE 100 company predicted annual revenue falling by up to £110m caused by lower water use during the Covid-19 crisis.

Underlying pretax profit for the six months to the end of September fell to £174m from £207.2m a year earlier as revenue dropped 4.4% to £894.4m. Reported pretax profit rose to £162m from £158.6m.

The water and waste company for North West England increased its dividend to 14.41p a share from 14.20p and reiterated its intention to increase the payout in line with CPIH inflation, which includes mortgage costs.

The main effect on revenue was price controls introduced for the AMP7 regulatory period, leading to a 7% reduction in average household bills in the current year. Non-household revenue fell by £40m as premises closed during the Covid-19 crisis, more than offsetting a £26m rise in household revenue with people locked down or working from home.

United Utilities said the impact on non-household revenue would be similar in the second half but that household revenue would be less positive because the first half benefited from hot weather. Revenue for the year to the end of March 2021 will be between £60m and £110m lower than the year before, it predicted.

Volume impact of between £10m and £60m is recoverable in two years' time, the company said.

Chief Executive Steve Mogford said: "We now have a clearer understanding of the impact of Covid-19 on our business which remains robust and supported by a strong balance sheet. This, together with a stabilised inflation outlook supported by central bank policy and government actions, gives us the confidence to reaffirm our responsible AMP7 dividend policy of growth in line with CPIH inflation."



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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

United Utilities Market Data

Currency UK Pounds
Share Price 1,022.50p
Change Today -20.00p
% Change -1.92 %
52 Week High 1,125.00p
52 Week Low 958.80p
Volume 2,070,450
Shares Issued 681.89m
Market Cap £6,972m
RiskGrade 118

United Utilities Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
69.48% below the market average69.48% below the market average69.48% below the market average69.48% below the market average69.48% below the market average
66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average
Price Trend
3.65% below the market average3.65% below the market average3.65% below the market average3.65% below the market average3.65% below the market average
14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average
Income
0.13% above the market average0.13% above the market average0.13% above the market average0.13% above the market average0.13% above the market average
20% below the sector average20% below the sector average20% below the sector average20% below the sector average20% below the sector average
Growth
82.45% below the market average82.45% below the market average82.45% below the market average82.45% below the market average82.45% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 3
Buy 1
Neutral 8
Sell 1
Strong Sell 0
Total 13
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

United Utilities Dividends

  Latest Previous
  Final Interim
Ex-Div 20-Jun-24 21-Dec-23
Paid 01-Aug-24 01-Feb-24
Amount 33.19p 16.59p

Trades for 31-Oct-2024

Time Volume / Share Price
16:39 8,703 @ 1,022.50p
16:39 1,123 @ 1,022.50p
16:39 1,053 @ 1,022.50p
16:35 1,820 @ 1,022.50p
16:35 1,153 @ 1,022.50p

United Utilities Key Personnel

Chair David Higgins
CFO Phil Aspin
CEO Louise Beardmore

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