United Utilities, the water company for the North West of England, has cited higher customer bills as the reason for an uptick in revenue and operating profit in its final results.
The utility provider, which has recently come under fire after a fault led to it pumping millions of litres of raw sewage into Lake Windermere, saw its revenue in the year to 31 March rise by 8.1 per cent from £1.8bn to £1.94bn.
Reported operating profit rose by 8.9 per cent from £441m to 480m thanks to higher customer bills.
However, earnings per share fell 38 per cent from 30p to 18.6p. Profit after tax also dropped 38 per cent down from £205m to £127m.
A 41.9 per cent jump in the cost of debt was responsible for the decline.
However, United Utilities hiked its dividend per share to 49.78p for the year, an increase of 9.4 per cent. It said this was “in line” with its policy to increase its dividend by the CPIH measure of inflation.
In its accompanying statement to markets, the firm claimed to have met or exceeded 80 per cent of its environmental target at a time when the industry is under intense scrutiny.
But recent Government data found United Utilities to have polluted more than any other water firm in 2023, pouring 3.6m hours into England’s rivers over the course of the year.
Louise Beardmore, CEO at United Utilities, said: “Colleagues have worked exceptionally hard throughout the year to deliver for our customers, communities and the environment. As a result, operational performance has been strong… We have also been ranked as the number one water and sewage company for customer service in the independent UK Customer Service Index.
“In addition, we are providing over 375,000 customers with affordability support against the backdrop of significant affordability support.”
Beardmore and the firm also pointed to its low level of gearing relative to other water firms, which increased this financial year by 6.9 per cent to £8.7bn.
United pledged to bring forward its investment of £400m to reduce spills and storm overflows and to accelerate environmental schemes.