		<div class="wpcnt">
			<div class="wpa">
				<span class="wpa-about">Advertisements</span>
				<div class="u top_amp">
							<amp-ad width="300" height="265"
		 type="pubmine"
		 data-siteid="111265417"
		 data-section="2">
		</amp-ad>
				</div>
			</div>
		</div><p><a href="http://londonglossy.com/wp-content/uploads/2010/11/united-utilities-profits-fall-24.jpg"><img class="alignnone size-full" title="United Utilities CEO Philip Green was upbeat despite lower profits" src="http://londonglossy.com/wp-content/uploads/2010/11/min-united-utilities-profits-fall-24.jpg" alt="United Utilities CEO Philip Green was upbeat despite lower profits"/></a></p>
<p>Price cuts and the impact of higher inflation have left water company United Utilities nursing a 24% drop in half-year profits to £196 million.</p>
<p>The decline, which was smaller than City forecasts, follows regulator Ofwat&#8217;s latest review of prices and industry spending in the five years to 2015.</p>
<p>The Warrington-based company, which covers a population of seven million people and 3.2 million households and businesses in North West England, was told to lower bills by 4.3% for 2010/11 but the impact of this on results was partly offset by slightly higher volumes due to the economic recovery.</p>
<p>Revenues from United&#8217;s regulated activities were 3% lower at £748 million in the six months to September 30, while operating profits fell 7% to £324 million despite a reduction in staff, power and infrastructure renewal charges.</p>
<p>The impact of rising inflation on financing costs meant it posted group-wide profits of £196 million.</p>
<p>Chief executive Philip Green said United was hopeful of beating the regulatory targets set for 2010-15, helped by its renewed focus on core operations after asset sales that have included Northern Gas Networks for £86 million.</p>
<p>The company committed £307 million of capital expenditure over the half year and said it was close to completing its West End Link water pipeline, a £120 million project connecting Merseyside and Greater Manchester.</p>
<p>United has cut its half-year dividend to 10p a share from 11.17p a year earlier in the wake of the Ofwat determination.</p>
<p>But with a predictable stream of regulated revenues, it has already set a growth target for future payments of 2% a year above inflation through to 2015.</p>
<p>Richard Hunter, head of equities at Hargreaves Lansdown stockbrokers, said United&#8217;s shares were up 29% this year, compared with 5% for the FTSE 100 Index.</p>
			<div style="padding-bottom:15px;" class="wordads-tag" data-slot-type="belowpost">
				<div id="atatags-dynamic-belowpost-69e2a70dca951">
					<script type="text/javascript">
						window.getAdSnippetCallback = function () {
							if ( false === ( window.isWatlV1 ?? false ) ) {
								// Use Aditude scripts.
								window.tudeMappings = window.tudeMappings || [];
								window.tudeMappings.push( {
									divId: 'atatags-dynamic-belowpost-69e2a70dca951',
									format: 'belowpost',
								} );
							}
						}

						if ( document.readyState === 'loading' ) {
							document.addEventListener( 'DOMContentLoaded', window.getAdSnippetCallback );
						} else {
							window.getAdSnippetCallback();
						}
					</script>
				</div>
			</div>
Discover more from London Glossy Post
Subscribe to get the latest posts sent to your email.
