United Utilities’ full-year underlying revenue rose 20.1% to £2.6bn, reflecting a step up in allowed revenues in the first year of the new five-year regulatory cycle.
Underlying operating profit jumped 34.8% higher to £1.1bn, driven by revenue growth which more than offset increased operating costs.
Free cash outflows were broadly flat at £0.1bn, as a step-up in infrastructure investment offset the improved profitability. Net debt rose by £0.6bn to £9.9bn.
For the year ahead, underlying revenue is expected to rise to between £2.7-2.8bn.
A final dividend of 35.78p per share was announced, taking the full-year total to 53.66p, up 3.5%.
The group has raised its five-year infrastructure investment plans by £2.5bn to around £11.5bn and has announced a new £0.8bn equity raise to help fund it.
The shares rose 11.8% in early trading.
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United Utilities key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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