United Utilities Group PLC Trading Statement (5280N)
25 Septiembre 2019 - 01:00AM
UK Regulatory
TIDMUU.
RNS Number : 5280N
United Utilities Group PLC
25 September 2019
United Utilities Group PLC
25 September 2019
UNITED UTILITIES TRADING UPDATE
United Utilities announces the following trading update ahead of
its interim results on 20 November 2019.
Current trading is in line with the group's expectations for the
six months ending 30 September 2019.
A high performing company in AMP6
Our strategy of accelerating investment into the early years of
AMP6 together with our deeply embedded innovation culture is
delivering enhanced levels of service and resilience for customers
along with sustainable improvements in efficiency. Our strong
performance means that we are well placed to deliver against our
targets for the current regulatory period with no material change
to prior guidance on our overall level of regulatory
outperformance.
We have committed to sharing with customers the benefit of our
anticipated outperformance through a total of GBP350 million of
additional investment. This includes the GBP100 million of
additional investment that we announced in May 2019, targeting
areas where we have the opportunity to deliver improved performance
earlier in AMP7, and we are progressing well with this programme of
spend.
A fast-track company for AMP7
The fast-track status awarded to our company business plan has
provided early clarity which we have used to refine and move
forward with our AMP7 implementation plans. This, together with our
high level of performance in AMP6 and the outperformance
reinvestment we have already committed to, gives us confidence
heading into the next regulatory period.
We continue to engage constructively with Ofwat and await the
final determinations to be published on 11 December 2019.
Financials
Group revenue is expected to be higher than the first half of
last year, largely reflecting our allowed regulatory revenue
changes.
Underlying operating profit for the first half of 2019/20 is
expected to be higher than the first half of 2018/19, largely
reflecting the higher revenue and lower infrastructure renewals
expenditure (IRE).
We expect a small share of losses of joint ventures.
The RPI inflation that is applied to the group's index-linked
debt is higher for the first half of the year and we therefore
expect the underlying net finance expense for the first half of
2019/20 to be just over GBP10 million higher than the first half of
last year.
We expect group net debt to increase by around GBP250 million at
30 September 2019 compared with the position as at 31 March 2019.
This largely reflects the prepayment of around GBP100 million in
April 2019 of the agreed deficit recovery contributions in relation
to the group's defined benefit pension schemes, the impact of
IFRS16 which results in the recognition of a GBP55 million lease
liability included in net debt, and the group's ongoing investment
in its asset base.
Our responsible approach to financial risk management continues
to deliver benefits including a strong balance sheet, pension
schemes that are now fully funded on a self-sufficiency basis and
gearing comfortably within our target range of 55 per cent to 65
per cent net debt to RCV, supporting a solid A3 credit rating for
United Utilities Water with Moody's.
United Utilities contacts:
Gaynor Kenyon, Corporate Affairs Director +44 (0) 7753
622282
Robert Lee, Head of Investor Relations +44 (0) 1925 237033
Graeme Wilson, Tulchan Communications +44 (0) 20 7353 4200
LEI 2138002IEYQAOC88ZJ59
Classification - Trading update
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END
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