United Utilities increases its 2015 interim dividend by 4.5%

DividendMax Ltd.

United Utilities increases its 2015 interim dividend by 4.5%

Operational improvements delivering benefits for customers

o significant improvements in AMP5 on Ofwat's SIM measure recognised in draft determination

o upper quartile performance on Ofwat and Environment Agency KPI assessments

o good asset serviceability performance recognised in draft determination

o reinvesting c£280m of outperformance for the benefit of all stakeholders

Continued effective delivery of capital investment programme

o strong capital delivery performance; Time: Cost: Quality index (TCQi) remains over 95%

o continued high levels of capital investment, expect to invest c£850m in 2014/15

Financials

o underlying operating profit up £3m to £343m, after c£13m one-off special customer discount

o RCV gearing at 57%, within Ofwat's 2010-15 assumed range

o interim dividend of 12.56 pence per share, in line with policy

Further growth in Business Retail

o most successful new entrant in Scotland

o continuing to offer and develop a range of value-added services

Steve Mogford, Chief Executive Officer, said:

"We are approaching the end of the 2010-15 regulatory period and we are pleased with the progress we have made over the last few years. We are now a leading operational performer in our sector, having delivered or exceeded our outperformance targets, and are one of the most improved water companies for customer satisfaction. 

"This strong performance has given us the capacity to reinvest around £280 million, for the benefit of all our stakeholders. In addition, our customers are set to benefit from below inflation growth in average household bills for the decade to 2020.

"The next regulatory period will place more emphasis on operational performance. Our significant improvements and the foundations we have built provide a solid platform for the future."

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