United Utilities profit up 7%

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During the last year United Utilities said that its capital expenditure in regulated activities had risen 45 per cent to £826 million, in line with regulatory assumptions. The company also said that it had completed the sale of United Utilities Electricity "for a substantial premium".

United Utilities said it had focused on core skills in order to deliver operational improvements and that it had extended major outsourcing contracts with Southern Water and British Gas Trading.

The company's total dividend for the year was up 3.9 per cent to 46.67 pence per share.

Philip Green, chief executive of United Utilities, 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."