REG - United Utilities Grp - Final Determination and Q3 Trading Update

United UtilitiesAnnouncement

29/01/2025 07:00

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RNS Number : 0988V  United Utilities Group PLC  29 January 2025

29 January 2025

United Utilities Group PLC

Final Determination and Q3 Trading Update

Final Determination

The board of United Utilities Water today announces that it has accepted the
Final Determination covering the five years to March 2030.

Our £13 billion investment across 2025-30 will enable us to deliver on the
things that matter for customers, communities and the environment, namely:

·      Delivering c.£5.7bn enhancement expenditure, including an
industry leading £2.4bn CSO programme to   deliver a 60% reduction in
spills from storm overflows this decade

·      Improving water quality for over 2 million customers and enabling
economic growth across the region

·      Annual asset base growth of c.7%(1) per annum, taking our AMP8
closing asset base to over £21 billion(1)

·      Putting in place a sector leading £525m package of support,
helping 1 in 6 households to pay their water   bill by 2030

·      Supporting 30,000 jobs and contributing £35 billion of economic
value in the North West

Louise Beardmore, Chief Executive Officer, said:

"With the final determination agreed, we are now able to progress what will be
the largest investment in water and wastewater infrastructure in over 100
years, to build a stronger, greener and healthier North West.

This historic £13 billion investment will support 30,000 jobs across the
North West, bringing focused investment in skills and opportunities,
supporting economic growth in our region.

Alongside record levels of investment, we are committed to maintaining
affordable bills and providing support to customers who need it most. With a
sector leading affordability package totalling £525m, we're putting in place
financial support to approximately one in six households across the North West
- that's approximately a 70% increase in the level of customer support
provided this AMP.

Most importantly, today's announcement means we can move forward and deliver
the step change in performance we all want to see."

Financing AMP8

The group is in a strong financial position, with gearing(2,3) of 60% and
£2.6 billion(3) of liquidity extending out to FY27.

After careful consideration of the final determination, the board confirms its
intention to continue to target gearing in the range of 55 to 65%, and to aim
to maintain United Utilities Water long-term issuer credit ratings of at least
Baa1 with Moody's, BBB+ with Standard & Poor's (S&P) and an issuer
default rating of at least BBB+ with Fitch (senior unsecured debt rating
A-).  This assumes that each ratings agency maintains current published ratio
thresholds/guidance for United Utilities' ratings and no further changes to
sector risk assessments or ratings methodologies.

Group dividend policy

The board today announces that we will continue to grow the dividend by CPIH
inflation, in line with our long-term dividend policy.

Q3 Trading Update

United Utilities has continued to deliver a strong operating performance in
Q3. We maintain our FY25 financial guidance and remain on track to deliver net
ODI rewards higher than last year's £34.5m

We recently announced a preferred bidder to design, build, finance and
maintain the replacement of six tunnel sections under the Haweswater Aqueduct
Resilience Programme (HARP). The aqueduct supplies water to 2.5 million people
in Cumbria, Lancashire and Greater Manchester and will be one of the largest
water infrastructure projects undertaken in the North West, with an estimated
construction cost between £2.5bn and £2.9bn(4).

Future events

We will host a presentation and Q&A session with management at 9am, which
can be accessed using the details provided below. A replay will be available
on the company website.

 

Link:
https://us06web.zoom.us/j/86355733351?pwd=U4MU9dyFYAajwHlDwaXw9XvauK5QuF.1
(https://us06web.zoom.us/j/86355733351?pwd=U4MU9dyFYAajwHlDwaXw9XvauK5QuF.1)

Meeting ID: 863 5573 3351

Passcode: 464993

 

We will also be hosting a capital markets day on 19(th) June 2025 - details to
follow.

 

Contacts

 Investors and Analysts
 Chris Laybutt, Investor Relations and Clean Energy Strategy Director  +44 7769 556 858
 Jennifer Platt, Investor Relations Manager                            +44 7733 064 907
 Media
 Gaynor Kenyon, Corporate Affairs Director                             +44 7753 622 282
 Graeme Wilson, Teneo Communications                                   +44 207 260 2700

 

 Notes

 1 Nominal, based on OBR long-run CPIH forecasts

 2 Measured as group net debt including loan receivable from joint venture
 divided by UUW's adjusted RCV adjusted for actual spend, timing differences
 and including full expected value of ex-post adjustment mechanisms

 3 United Utilities Group gearing and liquidity as at 30-Sep 24

 4 Project will be outsourced to a third party competitively appointed provider
 (CAP) under Direct Procurement for Customers (DPC)

 

 

LEI 2138002IEYQAOC88ZJ59

 

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