United Utilities, water supplier to the North West of England, published results for the six months to September 30, 2024, showing it paid £226 million in dividends during the period.
The company reported first-half revenue up 10.9% to £1.082 billion and profit before tax down 12.1% at £140.6 million.
United Utilities’ net debt at September 30 was £9.051 billion, compared with £8.763 billion at March 31.
The firm said its capital expenditure in 2024-25 is expected to be in the range of £950 million to £1.1 billion. “This comprises gross borrowings with a carrying value of £10,698 million, net derivative liabilities hedging specific debt instruments of £44 million and cumulative indexation on inflation swaps of £122 million and is net of cash and bank deposits of £1,813 million,” said the company.
On dividends, United Utilities said: “The board has announced an interim dividend of 17.28 pence per ordinary share in respect of the six months ended 30 September 2024.
“This is an increase of 4.2 per cent compared with the interim dividend last year, in line with the group’s dividend policy of targeting a growth rate of CPIH inflation each year through to 2025.”
On its cash flow, United Utilities said: “Net cash generated from operating activities for the six months to 30 September 2024 was £473 million, £92 million higher than £381 million in the same period last year, principally due to increased revenue.
“This is partially offset by higher net interest paid on debt and derivatives due to issuances during the prior and current year.
“The net cash generated from continuing operating activities supports the dividends paid of £226 million and partially funds some of the group’s net capital expenditure of £441 million, with the balance being funded by net borrowings and cash and cash equivalents.”
United Utilities CEO Louise Beardmore said: “We have delivered a robust set of operational and financial results.
“In October we were confirmed as the leading water and sewerage company by Ofwat on a suite of performance measures (ODIs) in 2023/24, delivering on the things that matter most to customers.
“In July the Environment Agency awarded us the top 4-star rating in its 2023 assessment, and we continue to support customers with affordability assistance having helped over 400,000 families since 2020.
“Improving rivers continues to be a key area of focus. We are already making progress at reducing spills from storm overflows, having commenced a programme of accelerated solutions.
“Our five-year plan builds on this, with a step-change in investment, and last week we announced that we would go further and faster, accelerating more work to reduce spills. By 2030, we will deliver improvements at more than 1,100 overflows across the North West.
“Looking ahead, we continue to evolve our plan for the next five years, with ambitious investment proposals to build a stronger, greener and healthier North West.
“This will see us invest significantly in new infrastructure, supporting 30,000 jobs and aligning with the Government’s ambitions for economic growth in the region.”