United Utilities interim profits hit by financing charges
Underlying interim pre-tax profits at United Utilities fell £16m to £189m, as a £4m increase in underlying operating profit was more than offset by a £19m increase in underlying net finance expense.
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United said the increase in underlying net finance expense was mainly due to the impact of higher RPI inflation on its index-linked debt. Reported pre-tax profit fell £57m to £158m.
Revenue was down £4m, as expected, at £853m, reflecting the accounting impact of United's Water Plus joint venture with Severn Trent, which completed on 1 June 2016.
Underlying earnings per share fell to 22p from 23.9p. Basic EPS rose to 29.7p from 25.2p.
"Overall, we are encouraged by our progress in the early part of this regulatory period. We have a robust financial position and are confident that we can deliver our targets for both customers and shareholders," the company said.