United Utilities Group posted a surge in interim earnings on Thursday, boosted by higher bills, leaving the water company on course to meet its full-year financial forecasts.
The blue chip, which supplies around 7m people in the north west with water and sewage services, saw revenues rise 21% in the six months to 30 September to £1.31bn.
Around £243m of the hike was attributable to regulatory adjustments, which govern what water companies can charge customers for their services.
Operating profits, meanwhile, surged 68.4% to £561.5m, helped by higher revenues and broadly flat costs.
Louise Beardmore, chief executive, said United Utilities had achieved a “strong” operating and financial performance during the period.
She continued: “Our transformative plan to invest over £13bn in the north west over the next five years is on track, with our supply chain fully mobilised.
“Our investment is delivering better environmental performance and improved infrastructure.”
United Utilities was one of several companies blocked from paying executive bonuses this year, after it failed to meet certain environmental and customer standards.
It has long been criticised for its sewage spills, including in Lake Windermere.
Earlier this year Beardmore appeared before MPs and acknowledged that United Utilities’ performance “isn’t good enough”.
Updating shareholders on Thursday, Beardmore said: “On storm overflows, we have a clear strategy of targeted inventions at hundreds of sites. Overall, spills are down around 40% year-to-date, around 100,000 of which are directly due to our actions.
“We’re making significant progress towards our long-term target of cutting them by 60% in the decade to 2030.”
Looking to the full year, United Utilities acknowledged it expected to incur a net customer outcome delivery incentives (ODI) penalty for 2025/25, “recognising the introduction of new measures in AMP8, with performance improvements expected to be progressive”.
AMP8 is the current regulatory cycle for water companies, which runs for five years from April 2025.
Full-year revenues, meanwhile, are set to come in between £2.5bn and £2.6bn, adjusted for inflation, with earnings per share of around 100p.
Interim EPS was 35.2p.
As at 0845 GMT, shares in United Utilities were down 1% at 1,185.62p.