United Utilities Group PLC (LSE:UU.) hiked its dividend 4.2% as the north-west England water company reported results for the year ended 31 March 2025, the last year under its previous five-year regulatory period.
The FTSE 100-listed company posted a 10% rise in revenue to £2.15 billion, with underlying operating profit up 22.4% to £633.8 million and reported profit before tax more than doubling to £355 million.
Chief executive Louise Beardmore highlighted the company’s strong performance across customer, community, and environmental metrics.
"We have delivered another strong set of results for customers, communities and the environment in the North West. Our focus on performance has seen us meet or surpass around 80% of our performance targets over the last five years, the best performance of any water company," she said.
For balance, it should be noted that the Surfers Against Sewage campaign group said last year, UU had the second highest number and duration of sewage discharges, while Observer newspaper revealed last year that seven United Utilities sewage plants and pumping stations in the Lake District were alleged to have illegally spilled sewage on 501 days between 2018 and 2023.
For its part, the company said its push on environmental improvements saw a 24% reduction in storm overflow spills in 2024, representing 20,000 fewer spills, the largest year-on-year reduction in the sector.
The company also maintained a top-quartile position in customer service, earning a cumulative £129 million in Outcome Delivery Incentives (ODI) rewards over the regulatory period (AMP7).
It is now setting its sights on its £13 billion investment programme for the next five years (AMP8), which it says will be the largest in its history.
Net debt stood at £9.35 billion at the start of the period, up 6.7% year-on-year.
A final dividend of 34.57p per share was recommended, consistent with the company’s policy of dividend growth in line with CPIH inflation.
Looking ahead, United Utilities plans to maintain its low gearing level within the 55-65% range and is targeting at least 100 basis points of outperformance against the regulatory contract in AMP8.
Shares in the company were up 1% to 1,081p on Thursday morning.