United Utilities reports in line trading and over £850m in capital investment

LONDON (ShareCast) - United Utilities Group said it expects a modest increase in underlying operating profit for current year earnings compared with the previous year and plans to invest over £850m in regulatory capital investment during the period. The UK utilities giant on Wednesday said revenues for the period ending 31 March 2015 are expected be slightly higher than last year, reflecting the regulated price allowance for 2014/15 partly offset by the impact of the previously announced one-off special customer discount of around £20m.

United Utilities (LSE: UU.L - news) also reported that it has exceeded its 2010-15 regulatory outperformance targets. The group said its capital delivery performance in this regulatory period has been "very good, as we invest to maintain and improve services for customers and deliver further environmental benefits." As such, the group is investing over £850m in regulatory capital investment for 2014/15, including infrastructure renewals expenditure and transitional investment.

"This substantial capital programme also makes a significant contribution to the regional economy, providing new investment and supporting employment," said United Utilities.

As a result of the increased capital investment, "we expect a modest increase in group net debt at 31 March 2015 compared with the position at 30 September 2014," it added.