05 December 2006
United Utilities delivers strong profit growth - group to focus on core skills
Interim results for the six months ended 30 September 2006
| £m (except dividends) |
Six months ended |
Six months ended |
%
Change |
| |
30 September 2006 |
30 September 2005 |
|
| Revenue from continuing operations |
1,117 |
998 |
+12% |
| Operating profit from continuing operations |
424 |
366 |
+16% |
| Underlying operating profit from continuing operations1 |
414 |
386 |
+7% |
| Profit before tax from continuing operations |
317 |
160 |
+98% |
| Underlying profit before tax from continuing operations1 |
282 |
248 |
+14% |
| Interim dividend per ordinary share (pence) |
14.63 |
14.29 |
+2.4% |
| Basic earnings per share (pence) |
Six months ended |
Six months ended |
| |
30 September 2006 |
30 September 2005 |
| Continuing operations |
25.7 |
13.7 |
| Continuing and discontinued operations |
25.8 |
0.7 |
- Underlying profit before tax1 up 14% to £282 million
- United Utilities North West operating profit increased by 21% to £391 million, with underlying operating profit1 up 9% to £380 million
- Strategic focus on core skills of managing water, wastewater, electricity and gas networks
- Vertex not considered a long-term strategic hold - divestment process initiated
- Further progress in raising index-linked funding at attractive interest rates
Commenting, Philip Green, chief executive, said:
"The group has again delivered strong profit growth, underpinned by a good financial performance in United Utilities North West as well as operational and service improvements.
"Our strategy is to focus on our core skills of managing water, wastewater, electricity and gas networks to create a world class operator of utility infrastructure. We aim to create a high performance company and to leverage our core skills in related outsourcing markets. With a solid track record and leading market position, we are well placed to benefit from potential growth opportunities.
"In line with this strategy, the board has recently taken the decision to initiate a process for the divestment of Vertex. It believes that shareholders' interests are best served by focusing on the group's core skills."
For further information on the day, please contact:
Contacts on the day for interim results 2006 Philip Green - chief executive +44 (0) 20 7307 0300
Tim Weller - chief financial officer +44 (0) 20 7307 0300
Gaynor Kenyon - communications director +44 (0) 7753 622 282
Darren Jameson - investor relations manager +44 (0) 7733 127 707
A presentation to investors and analysts starts at 8.30 am on Tuesday, 5 December 2006, at the City Presentation Centre, 4 Chiswell Street, London, EC1Y 4UP. The presentation can be accessed via a one-way listen in conference call facility, by dialling: + 44 (0) 20 7162 0025. This recording is available for 7 days following 5 December, on +44 (0) 20 7031 4064, access code 726313.
The presentation, with further information on United Utilities, will be available at 8.30 am on the day at: http://www.unitedutilities.com and, later, on Bloomberg at: UUIR<GO>, where a multimedia version will be available.
The full announcement and presentation in PDF format are available below:
Interviews with Philip Green and Tim Weller can be viewed via the following link:
http://w3.cantos.com/06/unitedut-612-zbq7i/
1 Underlying profit before tax and underlying operating profit from continuing operations are defined in the underlying profit measures table on page 13
Interim results 2006 (pdf190kb)
Interim results 2006 presentation (pdf332kb)