Warrington-based water giant United Utilities on Wednesday reported strong profit growth in the six months to September 30, on the back of a swing to a net finance income from a net finance expense.

The company posted a pretax profit of £426.3 million, compared to £212.7 million a year before.

However, this mostly reflects a £255 million decrease in reported net finance expense, including fair value movements.

It reported a £136 million net finance income, compared to a £119 million net finance expense a year prior.

Revenue edged down 1.4% to £919.3 million from £932.3 million.

United Utilities increased its interim dividend by 4.6% to 15.17p, up from 14.50p.

Looking ahead, United Utilities expects annual revenue to be around 1% lower than a year before.

“While the current challenging macro environment is impacting financial performance, the economic performance of our business remains robust, supported by our strong balance sheet, effective hedging policies and tight cost control,” said United Utilities.

The water company’s net debt at September 30, 2022, was £7.829 billion, compared with £7.570 billion at March  31, 2022.

Reporter: Tom Budszus

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