2013 financial news

United Utilities Group PLC
23 December 2013

United Utilities – Nick Salmon

In accordance with LR 9.6.14(2) Nick Salmon, non-executive director and senior independent director of United Utilities Group PLC has been appointed as a non-executive director of Asia Resource Minerals plc with effect from 1 January 2014 and will be appointed as their senior independent director on 1 February 2014.

Further information can be obtained from:
Jane Gilmore, Deputy Company Secretary +44 1925 237052
Darren Jameson, Head of Investor Relations +44 1925 237033

United Utilities ordinary shares trade on the London Stock Exchange and its ADRs, each equal to two ordinary shares, trade over the counter under the Trading Symbol "UUGRY".

United Utilities Water PLC has today submitted to Ofwat its business plan covering the 2015-20 period.

Balanced plan

Our business plan for the next five-year period means that customers would benefit from below inflation average household bills for the decade to 2020. We have sought the views of over 27,000 customers, as well as consulting with our regulators, to deliver a plan which we believe strikes the right balance for all our stakeholders. This includes a substantial capital investment programme to meet our environmental obligations and which will provide a significant contribution to the North West economy. Our plan reflects the views of customers on service and affordability, it delivers a paced environmental programme and it provides an appropriate return for investors.

Customer bills

Extensive stakeholder engagement has highlighted that the principal concern for customers is affordability. Customers are generally satisfied with the current high levels of water and wastewater services being provided and are only prepared to pay for specific targeted areas of improvement, with 86% of household customers supportive of bill rises no higher than inflation. This has been a key driver in the formulation of our plan and we are proposing an average real terms bill decrease of 1.7% for household customers across the five-year period (excluding the impact of the previously announced special customer discount of c£20 million to be applied to 2014/15 bills).

For non-household customers, we are proposing an average real terms bill decrease of 0.5% in 2015/16 with a total real terms increase of 2.5% by 2019/20. We have tested this proposal with non-household customers and 76% are supportive and we will work hard to help them reduce their overall spend.

Total expenditure

Our plan includes total expenditure of £6.6 billion (2012/13 prices). This comprises capital investment (capex), including infrastructure renewals expenditure, of £3.8 billion and operating expenditure (opex) of £2.8 billion. This mix of opex and capex has been derived from the optimal cost assessment over the life of our assets. We have reflected this mix in setting the wholesale business ‘pay as you go’1 ratio of 50%, which would result in real growth in the regulatory capital value of around £800 million over the 2015-20 period.

Operating expenditure

Our plan includes initiatives designed to save around £66 million per annum of opex by 2019/20, relative to 2012/13. This will largely offset the unavoidable cost increases in areas such as rates and power, alongside the addition of private pumping stations and enhancement programme costs.

Capital expenditure

Our proposed £3.8 billion capital investment programme (net of grants and contributions) comprises £1.3 billion for the water service, £2.4 billion for the wastewater service and £0.1 billion for the retail service. Investment to meet tighter regulatory quality standards, enhance service to customers and maintain the supply/demand balance is forecast at around £1.5 billion, with the remainder relating to maintenance. We have kept capex constrained at £3.8 billion by meeting new environmental obligations via a phased approach, supported by the Environment Agency and the Drinking Water Inspectorate.

Company specific adjustments

Reflecting the impact of the extreme levels of deprivation in the North West on our costs, we are seeking an adjustment to the household retail average cost to serve of around £25 million per annum. We have provided robust evidence to Ofwat in support of this approach.

We have worked hard with the Environment Agency to constrain and balance our expenditure programme. Nonetheless, similar to previous regulatory periods, our wastewater spend includes a significant environmental programme. In view of our regional differences, we believe it is necessary to assess this programme outside of Ofwat’s totex modelling methodology.

Return on capital

In deriving the weighted average cost of capital (WACC) in our business plan, we have carefully considered both financeability and customer affordability. In light of this, we have adopted a real, vanilla WACC2 of 4.1% for our wholesale business. When adding in our proposed non-household retail margin of 4%, this translates to an overall appointed business WACC of 4.3%.

Next steps

Ofwat is expected to publish draft determinations by August 2014, with final determinations due by December 2014.

United Utilities’ contacts

For further information on the day, please contact:

Gaynor Kenyon – Corporate Affairs Director +44 (0) 7753 622282
Darren Jameson – Head of Investor Relations +44 (0) 7733 127707
Peter Hewer / Michelle Clarke – Tulchan Communications +44 (0) 20 7353 4200

‘Pay as you go’ ratio is the proportion of wholesale total expenditure recovered directly through wholesale revenues

Vanilla WACC is derived from pre-tax debt and post-tax equity

Operational improvement delivering further benefits for customers

continued improvements in customer satisfaction, with further progress on Ofwat’s SIM scores

strong operational performance on Ofwat’s overall KPIs assessment

effective delivery of capital investment programme; Time: Cost: Quality index (TCQi) over 90%

expect to invest at least £800m in 2013/14

Outperformance continues to benefit customers and shareholders

reinvesting c£240m of capex & financing outperformance for customer & environmental benefits

revised tax treatment agreed with HMRC; c£75m net cash benefit to be used as follows:

c£20m special customer discount; offsetting allowed real price increase for 2014/15

c£17m of further support for customers struggling to pay

c£38m balance to be used for future sharing with customers

Good financial performance

underlying operating profit up £29m to £343m, benefiting from tight cost control

interim dividend of 12.01 pence per share, in line with policy

Business plan submission proposes below inflation bills for households

reflects extensive customer consultation, coupled with significant cost saving initiatives

substantial capex programme to maintain & improve services & meet environmental obligations

below inflation average household bills for the ten-year period 2010-20

Steve Mogford, Chief Executive Officer, said:

“Customer satisfaction with our service has continued to improve, underpinned by strong operational and environmental performance, and we remain focused on delivering further improvements. We are on track to invest at least £800 million this year in our network, maintaining and improving services, providing environmental benefits and supporting the local economy.

“We are discounting prices next year so that customers do not pay the full allowed price increase, meaning that, on average, bills will go up by no more than inflation. We are also committing to further support for customers struggling to pay. This is in addition to the previously announced reinvestment of £240 million of outperformance for the benefit of our customers and the environment.

“Our business plan for the next five-year period means that customers would benefit from below inflation average household bills for the decade to 2020. We have sought the views of over 27,000 customers, as well as consulting with our regulators, to deliver a plan which we believe strikes the right balance for all our stakeholders. This includes a substantial capital investment programme to meet our environmental obligations and deliver further customer and economic benefits.”

Visit our Results and Reports page for more information

For further information on the day, please contact:

Gaynor Kenyon – Corporate Affairs Director +44 (0) 7753 622282

Darren Jameson – Head of Investor Relations +44 (0) 7733 127707

Peter Hewer / Michelle Clarke – Tulchan Communications +44 (0) 20 7353 4200

A presentation to investors and analysts starts at 9.00 am on Wednesday 27 November 2013, 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 938555. A recording of the call will be available for seven days following Wednesday 27 November 2013 on +44 (0) 20 7031 4064, access code 938555.

United Utilities Group PLC announces the appointment of Mark Clare as a non-executive director with effect from 1st November 2013. Mark will also become a member of the Audit and Risk Committee and the Nomination Committee.

Mark is Group Chief Executive at Barratt Developments PLC, a position that he has held since 2006. Prior to taking up his current post he held various board positions at Centrica plc (between 1997 and 2006) including the post of Group Finance Director and Managing Director of British Gas Residential. He was a non-executive director of BAA plc from 2001 to 2006.

United Utilities’ Chairman, Dr John McAdam said: “As a current Chief Executive of a FTSE 250 company and with his background in regulated utilities, Mark’s appointment will strengthen the Board’s expertise; we are delighted to welcome him to the Board as a non-executive director.”

Mark will also be appointed as a non-executive director of United Utilities Water PLC with effect from 1st November 2013.

There are no further details to disclose under paragraph 9.6.13 (2) to (6) of the Listing Rules in relation to Mark Clare.

United Utilities contacts:

Simon Gardiner, Company Secretary +44 (0) 1925 237071

Darren Jameson, Head of Investor Relations +44 (0) 1925 237033

United Utilities Group's ordinary shares trade on the London Stock Exchange and its ADRs, each equal to two ordinary shares, trade over the counter under the Trading Symbol "UUGRY".

Director/PDMR Shareholding - 19 September 2013 - Share Incentive Plan (PDF 20 KB opens in new window)

19 September 2013

Director/PDMR Shareholding - 19 September 2013 - Share Incentive Plan

Current trading is in line with the group’s expectations for the six months ending 30 September 2013. The company remains firmly on track to deliver its 2010-15 regulatory outperformance targets and has delivered further customer service improvements through strong operational focus.

Revenue is expected to be higher than the first half of last year, reflecting the regulated price increase for 2013/14. As indicated previously, this revenue increase is expected to be slightly below the allowed regulated price rise, principally reflecting the on-going impact of a tough economic climate on volumes. Underlying operating profit for the first half of 2013/14 is anticipated to be moderately higher than the first half of 2012/13, as the company continues to tightly manage its cost base.

United Utilities has made good progress on its regulatory capital investment programme and, as planned, expects to invest around £800 million in 2013/14, including infrastructure renewals expenditure. This substantial investment helps to maintain and improve services for customers, delivers further environmental benefits and provides a significant contribution to the regional economy.

The underlying net finance expense for the first half of 2013/14 is anticipated to be similar to the first half of last year. Group net debt at 30 September 2013 is expected to be slightly higher than the position at 31 March 2013. This principally reflects expenditure on the regulatory capital investment programme, payment of the 2012/13 final dividend and payments in relation to interest and taxation, largely offset by operational cash flows and fair value gains on the group’s debt and derivative instruments. Gearing remains stable and comfortably within Ofwat’s assumed range, supporting a solid A3 credit rating for United Utilities Water.

The company is well advanced in preparation of its business plan for the 2015-20 period following extensive consultation with customers, regulators and other stakeholders and is on track for plan submission to Ofwat, as required by 2 December this year.

United Utilities will announce its half year results on 27 November 2013.

United Utilities contacts:

Gaynor Kenyon, Corporate Affairs Director +44 (0) 7753 622282
Darren Jameson, Head of Investor Relations +44 (0) 7733 127707
Peter Hewer / Michelle Clarke, Tulchan Communications +44 (0) 20 7353 4200

Deferred Share Award Scheme vesting - Sally Cabrini.  Please see a copy of the announcement here.

Deferred Share Award Scheme vesting - Gary Dixon. Please see a copy of the announcement here.

Deferred Share Award Scheme vesting - Simon Gardiner. Please see a copy of the announcement here.

UNITED UTILITIES WATER PLC AND UNITED UTILITIES PLC

ANNUAL FINANCIAL REPORT

Publication of the Annual Report

1 July 2013

The Annual Report and Accounts of United Utilities Water PLC and United Utilities PLC in respect of the financial year ended 31 March 2013 are available on the United Utilities website on our company reports page and will shortly be available for inspection at the National Storage Mechanism http://www.Hemscott.com/nsm.do

Further information can be obtained from Jane Gilmore, Deputy Company Secretary + 44 1 925 237052.

United Utilities Group's ordinary shares trade on the London Stock Exchange and its ADRs, each equal to two ordinary shares, trade over the counter under the Trading Symbol "UUGRY".

UNITED UTILITIES GROUP PLC

United Utilities Group PLC announces that its Annual Report and Financial Statements for the year ended 31 March 2013 and the Notice of Annual General Meeting are now available for viewing.

United Utilities Group PLC announced its Final Results on 23 May 2013 in accordance with the financial reporting obligations of the Disclosure and Transparency Rules.
Copies of the Annual Report and Financial Statements and the Notice of Annual General Meeting in respect of the financial year ended 31 March 2013 will also shortly be available for inspection at the National Storage Mechanism http://www.Hemscott.com/nsm.do

Further information can be obtained from Jane Gilmore, Deputy Company Secretary 44 1 925 237052

United Utilities Group's ordinary shares trade on the London Stock Exchange and its ADRs, each equal to two ordinary shares, trade over the counter under the Trading Symbol "UUGRY".

Director/PDMR Shareholding - 18 June 2013 - Share Incentive Plan (PDF 20 KB opens in new window)

18 June 2013

Director/PDMR Shareholding - 18 June 2013 - Share Incentive Plan

Director/PDMR Shareholding - 18 June 2013 - Deferred Bonus Plan (PDF 45 KB opens in new window)

18 June 2013

Director/PDMR Shareholding - 18 June 2013 - Deferred Bonus Plan

Director/PDMR shareholding - R. Houlden 28 May 2013 (PDF 104 KB opens in new window)

30 May 2013

Director/PDMR shareholding - R. Houlden 28 May 2013

Director/PDMR Shareholding - S. Fraser 28 May 2013 (PDF 104 KB opens in new window)

30 May 2013

Director/PDMR Shareholding - S.Fraser 28th May 2013

Director/PDMR Shareholding - G. Kenyon 28 May 2013 (PDF 105 KB opens in new window)

30 May 2013

Director/PDMR shareholding - G Kenyon 28 May 2013

Full Year Results For The Year Ended 31 March 2013 (PDF 322 KB opens in new window)

23 May 2013

United Utilities Group PLC Full Year Results for the Year Ended 31 March 2013

Directors' and PDMR's - Interest in shares - 20 May 2013 (PDF 20 KB opens in new window)

20 May 2013

Directors' and PDMR's - Interest in shares - 20 May 2013

Directors' and PDMR's - Interest in shares - 18 April 2013 (PDF 20 KB opens in new window)

18 April 2013

Directors' and PDMR's - Interest in shares - 18 April 2013

Current trading is in line with the group’s expectations for the year ending 31 March 2013. The company remains on track to deliver its 2010-15 regulatory outperformance targets and continues to drive improvements in customer service and operational effectiveness.

As indicated previously, revenue is expected to increase at a rate slightly below the allowed regulated price rise for 2012/13, principally reflecting the continuing impact of a tough economic climate on commercial volumes. Underlying operating profit for 2012/13 is anticipated to be slightly higher than 2011/12, despite expected rises in depreciation, power and other costs, as the company continues to tightly manage its cost base.

United Utilities has made further progress on its regulatory capital investment programme and now expects to invest at least £750 million in 2012/13, compared with £680 million invested in the prior year, as the company continues to invest to maintain and improve services for customers, deliver further environmental benefits and provide a significant contribution to the regional economy.

The underlying net finance expense for 2012/13 is expected to be moderately lower than last year, mainly reflecting the impact of lower RPI inflation in respect of the group’s index-linked debt.

The total effective tax rate for 2012/13 is expected to be broadly in line with the mainstream rate of corporation tax of 24%. This excludes the adjustment relating to deferred tax in the first half of the year, as a result of the UK Government’s staged reduction in the rate of corporation tax.

Group net debt at 31 March 2013 is expected to be slightly higher than the position at 30 September 2012. This principally reflects expenditure on the regulatory capital investment programme, payment of the 2012/13 interim dividend and payments in relation to interest and tax, largely offset by operational cash flows. Gearing remains stable, reflecting growth in the regulatory capital value, supporting a solid A3 credit rating for United Utilities Water PLC.

United Utilities will announce its full year results on 23 May 2013.

United Utilities contacts:

Gaynor Kenyon, Corporate Affairs Director +44 (0) 7753 622282
Darren Jameson, Head of Investor Relations +44 (0) 1925 237033
Peter Hewer / Michelle Clarke, Tulchan Communications +44 (0) 20 7353 420

Directors' and PDMR's - Interest in shares - 19 March 2013 (PDF 20 KB opens in new window)

19 March 2013

Directors' and PDMR's - Interest in shares - 19 March 2013

Holding in Company (PDF 84 KB opens in new window)

14 March 2013

Holding in Company

Holding in company (PDF 83 KB opens in new window)

14 March 2013

Holding in company

Directors' and PDMR's - Interest in shares - 19 February 2013 (PDF 19 KB opens in new window)

20 February 2013

Directors' and PDMR's - Interest in shares - 19 February 2013

Directors' and PDMRs' Dividend Reinvestment February 2013 (PDF 148 KB opens in new window)

05 February 2013

Directors' and PDMRs' Dividend Reinvestment February 2013

Block listing six monthly return - February 2013 (PDF 23 KB opens in new window)

01 February 2013

Block listing six monthly return

Director/PDMR shareholding - Steven Fraser (PDF 124 KB opens in new window)

29 January 2013

Director/PDMR shareholding - Steven Fraser

Director/PDMR shareholding - Gary Dixon (PDF 123 KB oppens in new window)

24 January 2013

Director/PDMR shareholding - Gary Dixon

Director/PDMR shareholding - Sara Weller (PDF 122 KB opens in new window)

22 January 2013

Director/PDMR shareholding - Sara Weller

Directors' and PDMR's - Interest in shares - 18 January 2013 (PDF 19 KB opens in new window)

18 January 2013

Directors' and PDMR's - Interest in shares - 18 January 2013

United Utilities accepts Ofwat's revised Licence proposals (PDF 35 KB opens in new window)

18 January 2013

United Utilities Water PLC (UUW) is pleased to advise that it has accepted the revised ‘Section 13’ licence modification proposals from Ofwat.

Key corporate dates 2013 (PDF 23 KB opens in new window)

08 January 2013

Key corporate dates 2013

Total Voting Rights - Month End 31 December 2012

02 January 2013

Month end – 31 December 2012

In accordance with the Disclosure and Transparency Rule 5.6.1 United Utilities Group PLC hereby notifies the market that on 31 December 2012 the total number of voting rights in the company is 681,888,418 and the total shares in issue are 681,888,418. No shares are held in Treasury.

Notification of major interests in shares should be emailed to Secretariat@uuplc.co.uk and faxed to 01925 237073.

Further information can be obtained from Jane Gilmore, Deputy Company Secretary + 44 1 925 237052.

United Utilities Group's ordinary shares trade on the London Stock Exchange and its ADRs, each equal to two ordinary shares, trade over the counter under the Trading Symbol "UUGRY".

Total Voting Rights - Month End 31 December 2012