United Utilities Group PLC United Utilities Trading Update (3721U)
March 28 2023 - 2:00AM
UK Regulatory
TIDMUU.
RNS Number : 3721U
United Utilities Group PLC
28 March 2023
28 March 2023
UNITED UTILITIES
Trading Update ahead of 2022/23 results
United Utilities announces the following trading update ahead of
its full year results on 25 May 2023.
Supporting customers
Helping customers cope with cost of living challenges remains a
top priority at United Utilities. The company's industry leading
GBP280m package of customer support over AMP7 will continue to
provide financial assistance for over 200,000 households with their
water bill during 2023/24.
Sustainability focus
United Utilities continues to perform strongly across key ESG
indices, having been assessed by Sustainalytics as a Top Rated
Company for 2023 and ranked as World Class in the Dow Jones
Sustainability Index (DJSI). We have improved our latest Carbon
Disclosure Project (CDP) score, achieving an A- in the CDP climate
change response 2022 and Leadership level across nine of eleven
categories as well as being in the top quartile of the non-energy
utility peer group.
In addition, United Utilities has been included in the Bloomberg
Gender-Equality Index 2023, and ranked 11th in The Inclusive
Companies Top 50 UK Employers List, recognising its commitment to
more equal and inclusive workplaces.
Leading environmental performance
United Utilities remains a sector leader in minimising the
number of serious pollution incidents, having again achieved a zero
score in 2022/23. We have been ranked as a top 4-star performer in
the Environment Agency's Environmental Performance Assessment
("EPA") in five of the last seven years. Our Better Rivers, Better
North West plan is delivering environmental improvements and we
have reduced the number of reported spills from CSOs by 38% since
2020, exceeding our 33% target two years earlier than expected.
Financial performance
ODI Performance : In December we experienced a period of extreme
weather. While our teams and partners worked tirelessly to minimise
disruption, some customers experienced short-term supply
interruptions caused by rapid freeze-thaw events, leading to burst
pipes. As a result, ODI performance for the year will be adversely
impacted. Net ODI outperformance for 2022/23 is now expected in the
range GBP20m to GBP25m. ODI guidance for AMP7 remains unchanged and
we continue to target a net reward of c.GBP200m.
Operating result: Group revenue for 2022/23 is expected to be
around 1% lower than previous guidance driven by timing effects,
primarily lower consumption, which are fully recovered in future
years. Operating costs are expected to be inline with previous
guidance.
Net finance and tax: Underlying net finance expense for 2022/23
is expected to be around GBP175m higher than last year, some GBP10m
higher than our previous guidance and largely as a consequence of
higher inflation. Cash interest is expected to remain stable when
compared to last year. We now expect an underlying tax credit for
2022/23 of between GBP15m and GBP25m, reflecting higher interest
charge and a change in approach to carried forward tax losses.
Balance sheet: Group net debt is expected to increase compared
with the interim result, largely reflecting the impact of inflation
on index-linked debt. Gearing remains in range, supporting a solid
A3 credit rating for United Utilities Water with Moody's and our
AMP7 dividend policy.
Annual results presentation
United Utilities 2022/23 results will be presented by incoming
CEO Louise Beardmore on 25 May 2023, which will include an update
on group strategy.
Contacts
Investors and Analysts
Chris Laybutt, Investor Relations and Clean
Energy Strategy Director +44 7769 556 858
Anna Oberg, Investor Relations Manager +44 7435 939 112
Media
Gaynor Kenyon, Corporate Affairs Director +44 7753 622 282
Graeme Wilson, Teneo Communications +44 207 353 4200
LEI 2138002IEYQAOC88ZJ59
Classification - Trading update
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