25 November 2009
- Sound results in a difficult economic environment: underlying operating profit of £370 million
- Customer satisfaction continues to increase: now at highest level for many years
- Taking action to improve overall performance: OPA score on track to improve significantly
- Agreed divestment of holdings in Northern Gas Networks and Manila Water for c£130 million
- Group plans to assess further opportunities to crystallise value from its non-regulated business
- Interim dividend increased by 5.0% to 11.17 pence per share, in line with policy
Commenting, Philip Green, Chief Executive, said:
"This is a sound set of results in a challenging economic climate. We have delivered an underlying operating profit of £370 million in the half year and have continued to make high levels of investment in our water and wastewater infrastructure.
"We responded rapidly to the recent exceptional weather conditions in Cumbria, with hundreds of our engineers working alongside the emergency services to help maintain vital water and power supplies. This remains a very difficult time for our customers and we will continue to work hard in the affected communities in the aftermath of the floods.
"Improving operational performance remains high on our agenda and the business is on course to meet its regulatory leakage target for the fourth consecutive year. In addition, overall service performance, as measured by Ofwat's OPA score, is on track to improve significantly this year.
"Our aim is to keep customer bills affordable whilst continuing with essential investment in our infrastructure. In September, we submitted our representations to Ofwat on the regulator's draft price limit proposals for 2010-15. Tomorrow, Ofwat is due to publish its final determination of prices and we have a two month period in which we will consider the proposals carefully before responding.
"We have agreed the disposals of our holdings in Northern Gas Networks and Manila Water, for approximately £130 million. Following these divestments, the group plans to assess further opportunities to crystallise value from its non-regulated business.
"We expect to deliver a sound underlying financial performance over the remainder of 2009/10, despite facing ongoing revenue and cost pressures. In line with our policy the board has declared an interim dividend of 11.17 pence per share, an increase of five per cent."
For further information on the day, please contact:
Philip Green - Chief Executive +44 (0) 20 7307 0300
Tim Weller - Chief Financial Officer +44 (0) 20 7307 0300
Gaynor Kenyon - Communications Director +44 (0) 7753 622282
Darren Jameson - Head of Investor Relations +44 (0) 7733 127707
James Bradley / Tom Murray - Tulchan Communications +44 (0) 20 7353 4200
A presentation to investors and analysts starts at 9.00 am on Wednesday 25 November 2009, at the Auditorium, Deutsche Bank, Winchester House, 1 Great Winchester Street, London, EC2N 2DB. The presentation can be accessed via a live listen in conference call facility by dialling: +44 (0) 20 7162 0025, access code 850308. A recording of the call will be available for seven days following 25 November 2009 on +44 (0) 20 7031 4064, access code 850308.
This half yearly financial report announcement and the associated presentation will be available on the day at: http://www.unitedutilities.com