Investor Guide
Last updated: August 2022
About us
United Utilities is listed on the London Stock Exchange, and provides water and wastewater services to around seven million people and businesses in the North West of England.
Shares also trade over the counter in the USA in the form of American depositary receipts (ADRs). Each ADR represents two ordinary shares.
Shares in issue: c682 million (100% free float)
Our investment proposition
Our purpose is why we exist
To provide great water and more for the North West
We have a clear vision of what we want to achieve
To be the best UK water and wastewater company
- Our purpose and vision motivate us to improve our services and deliver more
- Defining the way we operate are three strategic themes; the best service to customers, at the lowest sustainable cost, in a responsible manner
- These themes define the way we operate so we can deliver our purpose and work towards our vision
Why invest in United Utilities?
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Our performance in 2021/22
Our operational highlights
- Achieved our largest annual customer ODI reward of £25 million for 2021/22
- Strong performance across the board, meeting or beating over 80 per cent of performance commitments
- Investing a total of £765 million beyond the scope of our final determination allowance to help us accelerate environmental and customer outcomes
- A sector leading company on outcome delivery in Ofwat’s Service Delivery Report for 2020/21, with nine of 11 outcomes1 being at or better than target
1 Excluding per capita consumption, which Ofwat will be revisiting at the next price review once there is a better understanding of the impact of COVID 19 and any enduring effects.
- Offering more support than ever before through our extensive range of affordability and vulnerability schemes, helping over 200,000 households
- Providing around £280 million of affordability support over AMP7
- Active graduate and apprentice schemes, including recruiting 30 green apprentices to help us work towards our climate and environmental ambitions
- Committed to maintaining a diverse and inclusive team of people and we were the leading utility in The Inclusive Top 50 Employers List 2021/22
- Achieved a four star rating in the 2021 Environmental Performance Assessment from the Environment Agency, meaning we were categorised as an industry leading company
- Improving river health over the next 3 years through our “Better Rivers: Better North West” plan
- On track to deliver our bold commitments to reduce carbon
| Year ended 31 March | 2022 £m |
2021 £m |
2020 £m |
2019 £m |
2018 £m |
|---|---|---|---|---|---|
| Revenue | 1,862.7 | 1,808.0 | 1,859.3 | 1,818.5 | 1,735.8 |
| Reported operating profit | 610.0 | 602.1 | 630.3 | 634.9 | 636.4 |
| Underlying operating profit | 610.0 | 602.1 | 732.1 | 684.8 | 645.1 |
| Reported profit before tax | 439.9 | 551.0 | 303.2 | 436.2 | 432.1 |
| Underlying profit before tax | 301.9 | 460.0 | 534.8 | 460.3 | 370.2 |
| Reported profit after taxation | (56.8) | 453.4 | 106.8 | 363.4 | 354.6 |
| Underlying profit after tax | 367.0 | 383.0 | 486.3 | 407.9 | 304.9 |
| Reported (basic) earnings per share (pence) | (8.3)p | 66.5p | 15.7p | 53.3p | 52.0p |
| Underlying earnings per share (pence) | 53.8p | 56.2p | 71.3p | 59.8p | 44.7p |
| Dividend per ordinary share(1) (pence) | 43.50p | 43.24p | 42.60p | 41.28p | 39.73p |
(1) Dividend yield of 3.87%, based on closing share price on 31/03/2022 of 1124.5p
| As at 31 March | 2022 £m |
2021 £m |
2020 £m |
2019 £m |
2018 £m |
|---|---|---|---|---|---|
| Non-current assets | 13,823.2 | 13,166.2 | 13,215.7 | 12,466.4 | 11,853.6 |
| Current assets | 613.8 | 1,012.9 | 828.4 | 721.4 | 1,149.9 |
| Total assets | 14,437.0 | 14,179.1 | 14,044.1 | 13,187.8 | 13,003.5 |
| Non-current liabilities | (10,791.0) | (10,152.6) | (9,877.3) | (9,025.0) | (8,911.1) |
| Current liabilities | (688.6) | (995.5) | (1,204.7) | (1,052.0) | (1,141.5) |
| Total liabilities | (11,479.6) | (11,148.1) | (11,082.0) | (10,077.0) | (10,052.6) |
| Total net assets and shareholders' equity | 2,957.4 | 3,031.0 | 2,962.1 | 3,110.8 | 2,950.9 |
| Net debt | 7,570.0 | 7,305.8 | 7,361.4 | 7,067.3 | 6,867.8 |
| RCV gearing(2) (%) | 61% | 62% | 61% | 61% | 61% |
(2) Regulatory capital value (RCV) gearing is calculated as group net debt divided by the RCV (expressed in out-turn prices) of United Utilities Water Limited.
| Year ended 31 March | 2022 £m |
2021 £m |
2020 £m |
2019 £m |
2018 £m |
|---|---|---|---|---|---|
| Net cash generated from operating activities | 934.4 | 859.4 | 810.3 | 832.3 | 815.6 |
| Net cash used in investing activities | (639.7) | (549.3) | (593.9) | (627.7) | (723.2) |
| Net cash (used in)/generated from financing activities | (809.7) | (89.7) | (27.8) | (377.4) | 184.7 |
| Net increase/(decrease) in cash and cash equivalents | (513.5) | 220.4 | 188.6 | (172.8) | 277.1 |
Economic regulation
Economic regulation is the responsibility of an independent body, Ofwat, whose primary duties are to protect the interests of consumers, to ensure that companies properly carry out and can finance their functions and to secure the long-term resilience of water and sewerage systems.
As part of its periodic review, Ofwat sets the prices each company can charge their customers across the period. Average household bills are shown on the chart below.
Capital investment
Capital investment of more than £3bn across the 2020-25 period and is anticipated to remain high beyond 2025, as we continue to:
- Upgrade our water and wastewater networks;
- Deliver a cleaner environment;
- Provide high quality water to our customers;
- Maintain our ageing assets; and
- Improve our customers’ experience.
Growth in RCV
Attractive growth since privatisation.
For more information please contact
Chris Laybutt, Investor Relations and Clean Energy Strategy Director, chris.laybutt@uuplc.co.uk, T: +44 (0) 7769 556 858
Anna Oberg, Investor Relations Manager, anna.oberg@uuplc.co.uk, T +44 (0) 7435 939 112
United Utilities Group PLC
Haweswater House
Lingley Mere Business Park
Lingley Green Avenue
Great Sankey
Warrington WA5 3LP
corporate.unitedutilities.com
This document contains certain forward-looking statements with respect to the operations, performance and financial condition of the group. By their nature, these statements involve uncertainty since future events and circumstances can cause results and developments to differ materially from those anticipated. The forward-looking statements reflect knowledge and information available at the date of preparation of this document and the company undertakes no obligation to update these forward looking statements. Nothing in this document should be construed as a profit forecast. Certain regulatory performance data contained in this document is subject to regulatory audit.