United Utilities loses revenues and profits, but sees bright future
WARRINGTON water company United Utilities saw revenues and profits fall due to price cuts imposed by regulator Ofwat and the disposal of its non-regulated interests last year.
But new chief executive Steve Mogford delivered an upbeat assessment of UU’s prospects and plans for efficiency-driven savings, which he vowed would not impact on staffing levels.
Turnover fell from £1.57bn to £1.51bn in the year to March 31, and pre-tax profits decreased from £408.7m to £327.1m, although this was partly skewed by an £87m one-off pensions credit in the prior year.
However, Mr Mogford, who replaced Philip Green in March, reiterated the group’s strategy of paying shareholders dividends at 2% above inflation during the current five-year business period to 2015, and unveiled plans to make savings of £50m by 2015 to offset the effect of lower customer charges and its “downsizing” back to a purely water and wastewater company.
But he told LDP Business: “What we’re not looking at is another big redundancy programme or significant job losses as we go forward.”
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