United Utilities H1 profit rises with economic activity

United Utilities reported a 4% increase in first-half profit as water consumption increased along with economic activity.

Underlying operating profit rose to £332.8m in the six months to the end of September from £318.5m a year earlier as revenue increased 4% to £932.3m. The interim dividend rose to 14.50p from 14.41p.

The water company said it expected annual revenue to be about 2% higher than the previous year with capital spending between £625m and £675m. Underlying operating and finance costs will increase.

Household bad debt was 1.8% of regulated revenue, down from 2.2% in the year to 31 March 2021. The FTSE 100 company said this was a return to pre-pandemic levels.

Chief Executive Steve Mogford said: "Revenue … was up 4% on the same period last year, largely reflecting higher consumption as business activity returns to pre-pandemic levels. Household cash collection and our bad debt position have remained robust."