United Utilities shares jump 3% after ‘encouraging’ H1 results

Added 23rd November 2016

United Utilities’ share price enjoyed a 3% jump to 922.50p as it reported its first half financial results, with its chief executive saying he was “encouraged” and “confident” with the company’s progress.

United Utilities shares jump 3% after ‘encouraging’ H1 results

With a 9% increase in operating profits versus the previous year - from £278.3m to £303.6m - chief executive Steve Mogford said the company was making “significant progress towards meeting [its] customer, environmental and financial targets”.

Over the six months to 30 September revenue declined slightly, from £857m to £853m while the interim dividend increased 1.1% - in line with its dividend policy - from £12.81 to £12.95.

Graham Spooner, investment research analyst at The Share Centre, said investors should be pleased with the latter’s increase.

“The capital structure remains robust and while many large-cap dividend-paying companies are seeing the strength of the balance sheet dented by pension deficits and the potential for dividend cuts, United continues to manage a pension surplus supported by effective pension hedging.”

In his statement to the stock market, Mogford added that its accelerated capital investment programme continued to deliver early customer service and operational benefits.

“We have invested £383m in the first half of this year and remain on track to invest around £800m for the full year,” he said.

Its initiative around improving operational efficiency and effectiveness – coined ‘systems thinking’ – continued to drive innovation and would be rolled out further this year, including new process technology.

Reporting its best score to date on Ofwat’s service incentive measures United Utilities said it would continue to enhance its customer service offering, including ‘priority services’ for those facing short- or long-term personal or financial challenges.

Further, Mogford said the Environment Agency had granted United “industry leading company status”.

“Overall, we are encouraged by our progress in the early part of this regulatory period. We have a robust financial position and are confident that we can deliver our targets for both customers and shareholders,” he concluded.

Spooner added: “The defensive attractions post Brexit and yield provide support, especially amongst income seekers. Currently the prospective yield for the group is around 4.3%. As a result, we continue to recommend United Utilities as a ‘buy’ for lower risk, income-seeking investors.”

Kames Income Hub


Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address



Investment Strategy




PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

PA Channel Islands November 2017
PA Channel Islands November 2017

Tuesday 14 November
Royal Yacht Hotel, Jersey

PA Alternative Ucits November 2017
PA Alternative Ucits November 2017

Tuesday 7 November 
Furniture Makers' Hall

Sponsored Content