Market Analysis

United Utilities, a UK water firm (UU.L), anticipates increased costs for the fiscal year 2024-2025 due to potential regulatory charges stemming from overflow incidents caused by heavy rainfall. Despite this, the company foresees a 10% revenue growth driven by higher inflation.

The company attributed performance setbacks, such as flooding, to exceptionally high rainfall during the year. It expects penalties related to these incidents to affect its Outcome Delivery Incentives (ODIs) performance, which had already been impacted in the previous fiscal year.

ODIs represent annual bonuses awarded for surpassing service targets set by Ofwat, the water regulator for Britain and Wales.

United Utilities, headquartered in Warrington, reported a revenue of £1.95 billion ($2.47 billion), marking an 8.1% increase compared to the previous year. The adjusted operating profit stood at £517.8 million for the year ending March 31.

Analysts, according to LSEG IBES estimates, had anticipated annual revenue of £1.98 billion and an operating profit of £522.2 million on average.

The company announced a dividend of 33.19 pence per share for the year, reflecting a 9.4% increase.

Paraphrasing text from "Reuters" all rights reserved by the original author.