United Utilities FY profits grow amid Windermere sewage spill controversy

16th May 2024 09:43

(Sharecast News) - United Utilities said on Thursday that both revenue and operating profits had grown in the twelve months ended 31 March as it continues to be engulfed in a massive sewage spill controversy.

United Utilities said revenues were up 8.1% at £1.94bn, while underlying operating profits grew 17.5% to £517.8m. It also said it had swung from an underlying pre-tax loss of £34.3m in FY23 to a profit of £220.5m in FY24.

However, the FTSE 250-listed group was forced to tell investors that it takes its environmental commitments "very seriously" after reports that millions of litres of raw sewage had been pumped into Windermere in England's Lake District as a result of a fault at a pumping station in Cumbria back in February.

United Utilities said the spill was a result of an unexpected fault on the third-party telecoms cable network in the area and said it had taken "urgent steps to resolve the situation".

In its earnings report, United Utilities said it would bring forward roughly £400.0m of investment in its systems to reduce spills at more than 150 storm overflows.

Chief executive Louise Beardmore said: "We take our role in protecting the environment very seriously; our ambitious business plan would see us investing more than ever before to improve services across the five counties of the North West. This would deliver a genuine step-change in infrastructure for the benefit of customers and the environment, and support 30,000 jobs."

As of 0940 BST, United Utilities shares were down 1.47% at 1,095.63p.

Reporting by Iain Gilbert at Sharecast.com