United Utilities Regulatory News (UU.)

United Utilities Group PLC 20 March 2014 UNITED UTILITIES TRADING UPDATE Current trading is in line with the group's expectations for the year ending 31March 2014. Customer service continues to improve, as measured by Ofwat'sservice incentive mechanism, underpinned by good operational and environmentalperformance, and the company remains ahead of schedule in delivering its2010-15 regulatory outperformance targets. Revenue is expected to be higher than last year, reflecting the regulated pricechange for 2013/14. Underlying operating profit for 2013/14 is anticipated tobe moderately higher than 2012/13, as the company continues to manage its costbase tightly. The underlying net finance expense for 2013/14 is expected to besimilar to last year. United Utilities has made good progress on its regulatory capital investmentprogramme and expects to invest over £800 million in its asset base in 2013/14.This substantial investment helps to maintain and improve services forcustomers, delivers further environmental benefits and provides a significantcontribution to the regional economy. Group net debt at 31 March 2014 is expected to be similar to the position at 30September 2013. This reflects capital investment, payment of the 2013/14interim dividend and payments in relation to interest and tax, offset byoperational cash flows, fair value gains on the group's debt and derivativeinstruments and the receipt of a previously announced one-off tax rebate.Gearing at the year end is expected to be lower than the position at 30September 2013, reflecting growth in the regulatory capital value. This gearinglevel remains well within Ofwat's assumed range (55% to 65% net debt toregulatory capital value), supporting a solid A3 credit rating for UnitedUtilities Water. United Utilities will announce its full year results on 22 May 2014. United Utilities contacts: Gaynor Kenyon, Corporate Affairs Director +44 (0) 7753 622282 Darren Jameson, Head of Investor Relations +44 (0) 7733 127707 Peter Hewer / Michelle Clarke, Tulchan +44 (0) 20 7353 4200Communications

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