03 June 2008
Strong Operational and Financial Performance
Capital Programme on Track
Preliminary results1 for the year ended 31 March 2008
| £m (except dividends) |
Year ended |
31 March |
% Change |
| |
2008 |
2007 |
|
| Operating profit from continuing operations |
663.2 |
642.1 |
+3% |
| Underlying operating profit from continuing operations2 |
677.2 |
630.6 |
+7% |
| Profit before tax from continuing operations |
478.3 |
502.3 |
-5% |
| Underlying profit before tax from continuing operations2 |
475.6 |
407.5 |
+17% |
| Total dividends per ordinary share (pence) |
46.67 |
44.93 |
+3.9% |
| Basic earnings per share (pence) |
Year ended |
31 March |
| |
2008 |
2007 |
| Continuing operations |
47.3 |
40.9 |
| Continuing and discontinued operations |
103.3 |
49.4 |
1 Contribution from United Utilities Electricity, facilities management operations, industrial liquid waste operations and telecoms and the profits or losses on disposal of each of these operations are treated as discontinued operations in these results. Results from continuing operations for the year to 31 March 2007 have therefore been re-presented.
2 Underlying operating profit from continuing operations and underlying profit before tax from continuing operations are defined in the underlying profit measure table on page 14.
- Underlying operating profit2 up 7% to £677 million
- Completed sale of United Utilities Electricity for a substantial premium to its regulatory asset value
- Proposed £1.5 billion return of value to shareholders scheduled for August
- Capital expenditure in regulated activities up 45% to £826 million and in line with regulatory assumptions
- Focus on core skills delivers operational improvements: outperformed tougher leakage target
- Enhanced liquidity: pre-funded for capital investment programmes through to 2010
- Extended major outsourcing contracts with Southern Water and British Gas Trading
Commenting, Philip Green, Chief Executive, said:
"We have had a successful year. We sold United Utilities Electricity for a substantial premium to its regulatory asset value, addressed the portfolio and capital structure of the group and announced a new dividend policy. We remain on course to return £1.5 billion to shareholders and I am pleased to report another good set of financial results.
"We are on track to deliver our regulatory capital programme and have spent £826 million on our infrastructure during the year. Our focus on improving operational performance is delivering results. We have improved the level of customer service we are providing and for the second year running have achieved Ofwat's leakage target.
"We are confident of delivering a strong financial performance over the remainder of this regulatory period and continued investment in our assets will help to raise environmental standards further and improve the service we offer to customers."
For further information on the day, please contact:
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 622282
Darren Jameson - Head of Investor Relations +44 (0) 7733 127707
Dominic Fry / Tom Murray - Tulchan Communications +44 (0) 20 7353 4200
A presentation to investors and analysts starts at 9.00 am on Tuesday 3 June 2008, at the Auditorium, Deutsche Bank, Winchester House, 1 Great Winchester Street, London, EC2N 2DB. The presentation can be accessed via a one-way listen in conference call facility by dialling: + 44 (0) 20 7162 0025. A recording of the call will be available for seven days following 3 June 2008 on +44 (0) 20 7031 4064, access code 795933.
The presentation, with further information on United Utilities, will be available at 9.00 am on the day at: http://www.unitedutilities.com.