Full year results for the year ended 31 March 2017

Industry leading customer satisfaction, innovation and operational performance

  • Record SIM scores resulting in upper quartile performance
  • Systems Thinking approach delivering industry leading innovation and operational performance
  • Sector leading status with Environment Agency and Dow Jones Sustainability Index   

Investing for customers  

  • £804m investment taking total AMP6 investment to £1.6bn over first two years
  • Accelerated investment delivering further operational and customer benefits and contributing to a net ODI reward of £6.7m
  • Announcing today additional £100m of new investment to improve resilience for customers

Strong financials

  • Underlying operating profit up 3% to £622.9m (reported operating profit up 7% to £605.5m)
  • Total dividends of 38.87p, up 1.1%, in line with policy
  • Robust capital structure and effective pensions hedging

Key financials

Continuing operations Year ended
31 March 2017 31 March 2016
Revenue £1,704.0m £1,730.0m
Underlying operating profit (1) £622.9m £604.1m
Reported operating profit £605.5m £567.9m
Total dividend per ordinary share (pence) 38.87p 38.45p
RCV gearing (2) 61% 61%

1 Underlying profit measures have been provided to give a more representative view of business performance and are defined in the underlying profit measure tables on page 18
2 Regulatory capital value or RCV gearing calculated as group net debt/United Utilities Water’s shadow RCV (outturn prices)


Steve Mogford, Chief Executive Officer, said:

“We have delivered a strong performance for our customers, shareholders and the environment in this second year of the 2015-20 regulatory period. This performance combined with our confidence in delivering a net outperformance over the regulatory period has enabled us to commit to a further £100m of additional investment in the region. This will support our resilience projects bringing additional customer benefits over the next three years.

“We have achieved our best ever customer satisfaction scores under Ofwat’s Service Incentive Mechanism (SIM) ending the year in an upper quartile position amongst our peers. We introduced a number of innovations enhancing our customer service offering. One of the most successful, Priority Services, provides dedicated support to customers experiencing personal or financial difficulties.

“The acceleration of our investment programme continued delivering the early benefit of operational efficiencies and means we have de-risked a number of our Outcome Delivery Incentive (ODI) measures. This contributed to another net ODI reward and improves our likely cumulative outcome over the five-year period. Our Systems Thinking approach is unparalleled in the sector and is delivering a radically different way of managing our business.

“Our performance in the early part of this regulatory period puts us in an industry leading position and demonstrates that we are well placed to deliver further value for customers, shareholders and the environment. This is supported by a robust capital structure and good credit ratings.”

For further information on the day, please contact:

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

Robert Lee – Head of Investor Relations +44 (0) 7500 087704

Peter Hewer / Sam Chiene – Tulchan Communications +44 (0) 20 7353 4200

The full results document can be downloaded here

The investor presentation from this announcement is here