WARRINGTON (dpa-AFX) - United Utilities Group Plc (UUGRY.PK, UU.L) said revenue for the full year is expected to increase by between 3% and 4%. This increase is slightly below the allowed regulated price rise, principally reflecting the ongoing impact of customers switching to meters and lower commercial volumes in the second half of the year.
In a trading update, the company said its operational and efficiency initiatives continue to progress well and it remains on course to meet its regulatory outperformance targets.
United Utilities is continuing to implement a wide range of business improvement initiatives, which are delivering benefits for customers. This is being recognised through an improvement in Ofwat's service incentive mechanism assessment and this positive trend is continuing through the second half of 2011/12. The company expects to meet its 2011/12 regulatory leakage target, reflecting strong year round operational focus.
Further, as indicated previously, underlying operating profit is anticipated to be lower in the second half of 2011/12, compared with the first half.
The company also remains on track to deliver a good underlying financial performance for the year ending 31 March 2012.
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© 2012 AFX News
