LONDON (ShareCast) - (Sharecast News) - Water supplier United Utilities said on Friday that recent trading had been in line with internal expectations for the year ending 31 March.
United Utilities stated its full-year guidance remained unchanged, with net revenue expected to be approximately 3% higher year-on-year, largely reflecting higher consumption from business customers, while underlying operating profits were anticipated to be broadly flat as the increased revenues were offset by higher underlying operating costs, largely as a result of inflationary increases in its core costs.

The FTSE 100-listed group said it expects underlying net finance expenses to be around £175.0m higher than in the previous year, largely due to higher inflation applied to the group's index-linked debt, however, with inflation at a 30-year high, United highlighted that it will benefit from higher indexation increasing the regulatory capital value of its regulated business at the year-end, as well as higher future revenues.

As a result of the impact of capital allowances, including the temporary super deductions available for the current year, together with the expected agreement of prior years' tax matters as part of the group's normal processes of ensuring the right amount of tax is paid, it expects an underlying tax credit of around £60.0m.

United also expects to report an increase in group net debt when compared with the same time a year earlier, largely reflecting the inflation accretion on the group's index-linked debt along with ongoing investment in its asset base.

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