REG - United Utilities Grp - United Utilities Trading Update

United UtilitiesAnnouncement

28/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230328:nRSb3721Ua&default-theme=true

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 £280m 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 £20m to £25m. ODI guidance for AMP7 remains unchanged
and we continue to target a net reward of c.£200m.

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 £175m higher than last year, some £10m 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 £15m and £25m, 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

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUBSNROVUOUAR