(Alliance News) - United Utilities PLC on Thursday said that revenue and underlying profit for the 2021 financial year will be lower than in 2020.
The water supplier said revenue for the year ending March 31 will fall by around 3% because of a "reduction in our allowed regulatory revenue, with lower consumption from businesses as a result of Covid-19 largely offset by higher consumption from households."
Underlying profit is expected to decline because of the drop in revenue and higher infrastructure renewals expenditure. There will be a "small increase" in net debt. Current trading is in line with the company's expectations.
Warrington-based United Utilities said its underlying net finance expense will be around GBP100 million lower than last year, because of reduced debt costs and a change in how underlying performance is calculated. It expects a reward of up to GBP20 million under the UK water regulator's incentive scheme.
Shares were up 0.5% to 914.20 pence in London, outperforming the FTSE 100, which was down 0.1%.
Full-year results will be released on May 27, United Utilities said.
By Ivan Edwards; ivanedwards@alliancenews.com
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