United Utilities Group PLC on Friday reaffirmed its annual guidance, citing confidence in delivering its investment plans.
In a brief update, the Warrington, England-based water and wastewater services provider said it continued to ‘deliver strong operating performance’. It left guidance for its financial year ending March 31, 2025 unchanged.
In May, United Utilities said it was expecting to see revenue growth of approximately 10% in financial 2025 from £1.95 billion the prior year. It expects to make capital expenditure in the range of £850 million to £1.1 billion.
‘In addition to the two strategic optimisation partnerships announced in May, we have entered into agreements with seven leading engineering and infrastructure businesses, as well as eighteen detailed design and build organisations. This positions us well, with strong partnerships underpinning the deliverability of our AMP8 investment programme,’ the company said on Friday.
AMP8 is the next regulatory cycle for water companies, starting on April 1, 2025, and spanning five years.
Earlier this week, UK water regulator Ofwat announced United Utilities had been served an enforcement notice, alongside three other water companies including FTSE 100 peer Severn Trent PLC. This concerned a major investigation into pollution from sewage works.
The order means Ofwat has found that the firms may have breached legal environmental obligations, which could result in fines.
Shares in United Utilities were down 0.2% to 1,026.00 pence each in London on Friday around midday, falling 3.0% this week.
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