LONDON (ShareCast) - (Sharecast News) - United Utilities reported a "strong" financial performance in its half-year results to 30 September on Wednesday, with an underlying operating profit rising to £367.8m from £344m, and a reported operating profit of £339.1m, up from £341.8m.
The FTSE 100 water services company said that was on revenue of £916.4m, which grew from £876m year-on-year, while its underlying profit after tax was £196.9m, up from £160.1m.

It said its interim dividend was in line with its AMP6 growth policy, with a distribution of 13.76p declared, rising from the 13.24p paid at the interim last year.

The board said it maintained a "robust" capital structure and a "strong" pensions position, providing resilience and future financial flexibility.

On the operational front, United Utilities said it delivered customer service improvements through innovation and strong operational performance, pointing it was now the top water and wastewater company on the UKCSI.

It now expected an AMP6 SIM reward of £11m or more.

United said it provided the "widest range of support" for customers, doubling the number receiving help with affordability over AMP6.

The board said its 'systems thinking' approach had unlocked innovation opportunities, and underpinned its long-term operational improvement, as the firm achieved "industry leading" environmental and water quality performance scores.

It also saw sustained gains in efficiency, delivering totex outperformance of £100m against its AMP6 scope, with the company remaining on track to deliver a cumulative AMP6 ODI reward.

Looking ahead, United Utilities said it had "strong plans" for AMP7 and beyond, with an "ambitious" PR19 business plan delivering £1bn of efficiencies, further reducing bills whilst improving service.

A real bill reduction of 10.5%, and targeted support helping more than 300,000 households out of water poverty, was also targeted.

The United board said the plans built on its performance in AMP6, giving it confidence heading into AMP7 and beyond, and also delivered for customers while creating long-term value for all stakeholders.

"Customers are at the heart of everything we do," said chief executive officer Steve Mogford.

"Our approach to affordability and vulnerability together with our sustained improvements in customer service position us as a leader in the sector. In the most recent UK Customer Satisfaction Index we were the most improved utility company and the highest ranked water and wastewater company."

Mogford also noted that the Institute of Customer Service, which assesses excellence in customer service across all sectors, recently awarded United Utilities its top Service Mark with Distinction.

"Our approach to innovation and the use of advanced technology from around the world alongside our capital investment is delivering better service, greater resilience and improved efficiency.

"Fundamental to this is our pioneering Systems Thinking approach which continues to unlock innovation opportunities and is making a significant and positive difference to our sustainable, long-term performance."

The "significant progress" the company had made positioned it well for the remainder of the current regulatory period and beyond, Mogford explained.

"We have responded well to the challenges brought about by the impact of more variable weather and have created a platform for continuing strong operational performance.

"We will continue to provide a great service to our customers and create long-term value for all of our stakeholders."

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