Water supply company United Utilities warned on Tuesday that 2022-23 full-year revenues were now expected to be roughly 1% lower than previous guidance.
United Utilities stated the revenue decline was a result of timing effects, primarily lower consumption, which it said will be fully recovered in future years. Operating costs were expected to be in line with previous guidance.
Underlying net finance expenses were upwardly revised and now projected to to be around £175.0m higher than last year, roughly £10.0m higher than previous guidance and principally as a consequence of higher inflation. United also expects an underlying tax credit of between £15.0m and £25.0m, reflecting higher interest charges and a change in its approach to carried forward tax losses.
The FTSE 100-listed group stated some customers had experienced short-term supply interruptions caused by rapid freeze-thaw events due to a period of extreme weather, leading to burst pipes and adverse impacts to the firm’s outcome delivery incentives performance – now expected in the range £20.0m to £25.0m.
As of 0855 BST, United Utilities shares were down 2.37% at 1,010.98p.
Reporting by Iain Gilbert at Sharecast.com
