WARRINGTON (dpa-AFX) - United Utilities Group PLC (UU.L, UUGRY.PK) said that current trading is in line with the group's expectations for the six months ending 30 September 2016.
Total regulatory capital investment for 2016/17, including infrastructure renewals expenditure, is expected to be around 800 million pounds, similar to last year.
Group revenue is expected to be slightly lower than the first half of last year, reflecting the accounting impact of Water Plus business retail joint venture, which completed on 1 June 2016, partly offset by our allowed regulatory revenue changes.
Underlying operating profit for the first half of 2016/17 is expected to be marginally higher than the first half of 2015/16. It is anticipated that infrastructure renewals expenditure (IRE) in the first half of 2016/17 will be slightly lower than the first half of last year. In line with planned capital investment phasing, it expects an increase in IRE in the second half of 2016/17, compared with the first half of the year.
The underlying net finance expense for the first half of 2016/17 is anticipated to be around 20 million pounds higher than the first half of last year, mainly reflecting the impact of higher RPI inflation on index-linked debt and slightly higher net debt.
As the company continues to invest in its asset base, group net debt at 30 September 2016 is expected to be slightly higher than the position at 31 March 2016. This principally reflects regulatory capital expenditure, payment of the 2015/16 final dividend and payments in relation to interest and tax, largely offset by operational cash flows. Gearing remains comfortably within target range of 55% to 65% net debt to regulatory capital value, supporting a solid A3 credit rating for United Utilities Water. The group has financing headroom into 2018.
The company noted that it will announce its half year results on 23 November 2016.
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