- United Utilities revealed its underlying profits climbed by 48.8% to £338.3m
- Customers will see water bills increase by an average of 32% over five years
United Utilities has revealed profits doubled last year, as households in the North West prepare for a large increase in water bills over the next five years.
The water company revealed its underlying profits climbed by 48.8 per cent to £338.3million in the year ending March, from £227.3million in the prior 12 months.
At the same time, the Warrington-based firm’s reported profits more than doubled from £126.9million to £264.7million.
United Utilities, which serves 7million customers across the North West of England, said the profit surge mainly reflected its turnover expanding by 10 per cent to £2.15billion.
It comes after regulator Ofwat approved funding measures that saw every water supplier across the country raise prices last month, with households set to pay at least 20 per cent more over five years.
As of last month, United Utilities customers will see their water bills increase by an average of 32 percent over the next five years, as part of its business plan agreed with regulator Ofwat.
The plan, which is intended to fund investment in infrastructure, will result in an average increase of £94 in household bills from 2024-25 to 2029-30, before inflation.
Strong growth: United Utilities revealed its underlying profits climbed by 48.8 per cent to £338.3m in the year ending March, from £227.3m in the prior 12 months
United Utilities saw revenues grow by £196million last year, £186million of which it credited to ‘regulatory adjustments’ like the 4.2 per cent inflation-linked increase to the revenue cap.
The FTSE 100 business said it achieved higher earnings whilst reducing the number of spills by 20,000 and achieving its lowest ever leakage rates in the North West.
Like the rest of the British water sector, United Utilities has received intense criticism over recent years for its environmental record.
A BBC investigation last October alleged the firm had dumped over 140 million litres of waste into Lake Windermere between 2021 and 2023 when it was not allowed.
The following month, the Observer published an analysis claiming seven United Utilities sewage plants and pumping stations across the Lake District pumped illegal spills on 501 days from 2018 to 2023.
While this has happened, United Utilities has continued to hike bills and pay dividends to shareholders, including £344.1million last year.
The company has recommended a final dividend of 34.6p per share, which it expects to pay at the beginning of August.
Louise Beardmore, chief executive of United Utilities, said: ‘We have delivered another strong set of results for customers, communities and the environment in the North West.
‘Our focus on performance has seen us meet or surpass around 80 per cent of our performance targets over the last five years, the best performance of any water company.’
United Utilities plans to spend £13billion upgrading its water network up to March 2030, funded by a 32 per cent increase in customer bills.
By the end of the period, it hopes to have upgraded more than 900 kilometres of water mains and slashed spills from storm overflows by over 60 per cent.
United Utilities shares were 1.4 per cent down at 1,055.5p on Thursday morning and have roughly flatlined since the year started.
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