North West water and wastewater group, United Utilities, is launching an £800m equity raise to fund £2.5bn of extra investment.
It said the extra funding is needed to fulfil its infrastructure investment, which is driven by demands such as increased housing developments, clean energy and a rise in data centre development.
The equity raise will include one million shares for retail investors, which represents around £10m of the total £800m.
The bulk of the £800m equity raise is from Australia’s sovereign wealth fund, Future Fund, and global infrastructure investor, ATLAS, who are the joint cornerstone investors and are providing £400m between them.
The group said its investment programme over its current five-year regulatory period has risen from £9bn to £11.5bn, and has, today, applied to the industry regulator for permission to increase investment levels.
The group said its infrastructure programme will deliver new water infrastructure for data centres in East Manchester (c. £200m), non-potable water supply to the clean energy cluster in Ellesmere Port (c. £220m), and wastewater treatment capacity upgrades at 34 sites to support 66,000 new homes across the region (c. £350m).
It also involves proactive asset replacement (c. £410m), addressing five asset classes – gravity sewers, water network storage, trickling filters, rapid gravity filters and boreholes.
A clamour for infrastructure improvements follows rising public concern over pollution and sewage spill levels, leading to the need for extra investment.
Critics would argue the current infrastructure improvements should have been made at the time the industry was privatised in 1989 – when the then Conservative government pledged to upgrade the Victorian network of most utility groups – instead of decades of generous shareholder dividends.
The Warrington-based group also issued its annual results today (April 30), which revealed revenues rose 22% in the year to March 31, 2026, to £2.616bn. Pre-tax profits jumped by 119.4% to £779m.
Shareholders will be paid a final dividend of 35.78p per share, up from 34.57p the previous year.
The utility group is already increasing household water bills by an average of 32% over five years, equivalent to approximately £31 more per year, as part of its 2025-2030 investment plan.
Announcing today’s results, CEO, Louise Beardmore, said: “Our BIG North West upgrade is now well under way, marking the most significant transformation of our region’s water and wastewater infrastructure in more than a century.
“One year into our five‑year AMP8 programme, we are delivering at pace and at scale – strengthening the resilience and quality of our services, protecting and enhancing the environment, and supporting sustainable economic growth and thousands of new jobs across the North West.
“Building on this platform, today we are announcing a plan for additional investment in our region – including proposals for new water and wastewater infrastructure critical to the development of homes, data centres and clean energy.
“We expect it could create a further 4,000 jobs across our supply chain, on top of the 30,000 supported by our existing AMP8 programme. This focused, disciplined and well-funded plan will help us accelerate delivery of the transformation in infrastructure and services that the North West expects and deserves.”
Regarding the additional funding for infrastructure improvements, she added: “With our upgraded financial framework, sector-leading financing performance and strong delivery track record, we are confident in our ability to generate attractive and sustainable returns for shareholders while delivering for our customers, communities and the environment.”
The group said revenue is expected to increase to between £2.7bn and £2.8bn in the current 2026/27 financial year.
The dividend continues to grow in line with CPIH (Consumer Prices Index including owner occupiers’ housing costs) resulting in a dividend per share of 55.54p.
Shares in the group jumped in early trading this morning.
Following yesterday’s closing price of 1,312.00p, they opened this morning at 1,434.00p and had risen to 1,458.50p per share by 10am, an 11.5% increase.
Russ Mould, investment director at Manchester investment platform, AJ Bell, said: “Plans for a massive flood of investment at water utility company United Utilities has created an unusual level of excitement for a part of the stock market historically seen as pretty boring.
“In more recent times the water sector’s name has been mud with investors, regulators, the public and politicians thanks to issues around pollution and financial mismanagement across the broader sector.
“The plan to support areas like data centres, clean energy and new homes is being taken as a game changer by investors for now, although delivering on this big programme of spending and remaining on time and on budget is the big challenge for the company.”