US Edition 
United Utilities profits fall 36pc on £55m interest rate swaps charge
United Utilities became the second water company this week to take a hit on interest rate swaps, as its half-year pre-tax profits fell 36pc to £122m.
Profits were hit by a £55m charge on the financial instruments plus £16m of costs related to restructuring, as it sold off its non-regulated assets and became a pure water player during the year.
The company's share price fell 7½ to 610p, despite the fact that its operating profits beat analyst expectations.
The company saw revenue drop slightly to £762m on lower prices imposed by the regulator, but this was partially offset by higher industrial water usage.
Philip Green, the outgoing chief executive, said the company had got off to "a flying start to the five-year period".
He said he was leaving the company "well prepared" to tackle the next five years, having revealed earlier this week that he would step down to take on non-executive work at the end of March.
"Inevitably over time there will be more job losses as we continue to improve efficiencies but there are no immediate plans for any more," he said.
Mr Green said he sympathised with the concerns of Neil Woodford, the major utility investor at Invesco Perpetual, who has complained about returns and recently disposed of a £100m stake in Severn Trent.
"The regulator just about got the balance right between customers and investors in the last price review," Mr Green said. "But looking forward, Neil Woodford is absolutely right in his warning because as long as capital expenditure stays at the same high level, we need to support the debt and equity markets given there are so many other claims on their capital."
United Utilities will pay an interim dividend of 10p per share - a 10pc cut on the previous year - on February 2.
Its future dividend policy is to increase payments by 2pc per year above inflation.