United Utilities has revealed it expects to deliver revenue growth of around 10 per cent in the 2025 financial year as the firm reporting a jump in profit in its first half.
The FTSE 100 firm, which supplies water to the North West, reported that underlying revenue rose by 11 per cent in the six months to the end of September, hitting £1.1bn compared to £975m in the same period last year.
The increase, which was largely due to more expensive consumer bills, helped underlying operating profit jump 24 per cent to £335.7m.
“We have delivered a robust set of operational and financial results,” chief executive Louise Beardmore said as the firm announced an interim dividend of 17.28p per share, up 4.2 per cent on last year.
Looking across the year as a whole, United Utilities said that pricier bills would help the firm deliver revenue growth of around 10 per cent.
However, operating costs are expected to increase by more than inflation due to business rates and regulatory charges. Capex in 2024/25 is also expected to be in the range of £950m-£1.1bn.
The results come as the UK’s water companies face increasing regulatory scrutiny due to the widespread sewage leakages plaguing Britain’s water network.
Environmental groups claim that United Utilities has been illegally dumping sewage into Lake Windermere.
In its results, the firm said it was accelerating work on its spill reductions, aiming to make improvements at over 1,100 storm overflows by 2030.
“Improving rivers continues to be a key area of focus. We are already making progress at reducing spills from storm overflows, having commenced a programme of accelerated solutions,” Beardmore said.
“Our five-year plan builds on this, with a step-change in investment, and last week we announced that we would go further and faster, accelerating more work to reduce spills,” she added.