Half year results for the six months ended 30 September 2017


Customer focus delivers further improvements

  • A leading company for customer satisfaction
  • Doubling the number of customers receiving help with affordability over AMP6

Investing for customers, the environment and driving operational performance

  • Accelerated investment delivering improved operational performance
  • Sector leading on environmental performance for another year
  • Systems Thinking driving efficiency and resilience; leading position heading into PR19
  • Good performance on ODIs

Financial performance in line with expectations

  • Underlying operating profit of £344.0m (reported operating profit of £341.8m)
  • Interim dividend in line with AMP6 growth policy
  • Sector leading, low risk pension position through effective hedging

Key financials


Continuing operations

Six months ended
30 September 2017 30 September 2016
Revenue £876.0m £853.0m

Underlying operating profit1

£344.0m £312.5m
Reported operating profit £341.8m £303.6m

Underlying profit after tax1

£160.1m £151.5m
Reported profit after tax £197.4m £202.6m
Interim dividend per ordinary share (pence) 13.24p 12.95p
Net regulatory capital spend £394.4m £383.5m

RCV gearing2

61% 62%

 1Underlying profit measures have been provided to give a more representative view of business performance and are defined in the underlying profit measure tables on pages 13 and 14

2Regulatory capital value or RCV gearing calculated as group net debt/United Utilities Water’s shadow RCV (outturn prices)

Steve Mogford, Chief Executive Officer, said:

“This has been a strong first half performance in which we have delivered further value for customers and shareholders.

“We continue to put customers first, achieving significant further improvements in customer satisfaction, and positioning us as a leader in our sector. This is a significant achievement in a region seeing some of the highest levels of deprivation in the country. Average bills are set to reduce in real terms over the ten year period to 2020 and we expect to double the number of customers we help through our award winning affordability schemes over AMP6.

“Our innovative Systems Thinking approach to running the business is delivering increasingly efficient and resilient services. By investing earlier than our original plans for this regulatory period we are accelerating the delivery of value to customers and shareholders, and positioning the business as sector leading as we approach the next regulatory cycle.

“As we turn our attention to the next price review for the period 2020 to 2025, we are engaging with customers across our region to understand their needs and preferences and to formulate plans that best satisfy those needs. Affordability will be key, balanced against resilience to climate change and population growth in our region.”

For further information on the day, please contact:

Gaynor Kenyon – Corporate Affairs Director +44 (0) 7753 622 282

Robert Lee – Head of Investor Relations +44 (0) 7500 087 704

Sam Chiene / Peter Hewer – Tulchan Communications +44 (0) 2073 534 200

The full results document can be downloaded here

The investor presentation from this announcement is here

A presentation to investors and analysts starts at 9.00am on Wednesday 22 November 2017, 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:
UK toll: +44 (0) 333 300 0804 / UK toll free: +44 (0) 800 358 9473
Participant PIN 25837389#

For international dial in numbers:

United Utilities Group PLC presentation and Q&A

Listen to Steve Mogford, chief executive officer and Russ Houlden, chief financial officer present our half year results.