United Utilities profits hit by 2018 heatwave

United Utilities provides the North West's water
United Utilities provides the North West's water
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United Utilities said today it expected its annual profits to be hit by last summer's heatwave.

The firm issued a trading update ahead of its full year results on 23 May 2019.

It said current trading was in line with the group’s expectations for the year ending 31 March 2019.

Group revenue is expected to be higher than last year, largely reflecting its allowed regulatory revenue changes.

The company said underlying operating profit for 2018/19 is expected to be higher than 2017/18.

But it added: "Reported operating profit will be impacted by costs relating to the exceptional period of dry weather in the summer of 2018, guaranteed minimum pension (GMP) equalisation and restructuring within the business.

"To provide a more representative view of business performance, operating costs associated with these items will be excluded from the underlying profit measures.

"These adjusted items are expected to total £52 million for the full year, of which £29 million was recognised in the first half."