United Utilities Group PLC (LSE:UU.) said interim operating profits fell as it set aside £30.5 million to pay for a sewage spill from its Fleetwood water treatment plant.
Most of this was tanker charges to stop further spillages along the Fylde coast while remedial work was undertaken, the northwest-focused water supplier added.
United Utilities recently pledged £13.7 billion in investment to improve its poor record of water and sewage leaks following an outcry over how much waste the whole industry is pumping into Britain’s rivers and coastal seas.
Louise Beardmore, chief executive, said the company has made an “early start” on overflows and has spent £1.2 billion of its commitment already to cut storm overflow sewage spills.
Revenue for the six months to end September 2023 was £982 million, up 6.8%, though pre-tax profits tumbled 63% to £160 million due to higher interest costs and the Fylde provision.
For the full year, some of these effects will reverse, United Utilities said, with revenues to be £150 million above the previous year due to higher water bills while lower inflation will slash £150 million off its interest bill.
Each 1% move in inflation equals a £45 million swing in interest payments for the utility either way.
Dividends will grow with the CPIH rate of inflation, added the statement.