United Utilities hails good year

The firm says leakage incidents have been falling

Water provider United Utilities has hailed "a successful year" during which the company sold its electricity distribution business.

The Warrington-based group made a £492.9m profit from selling businesses, including a £371m profit on the £1.8bn sale of United Utilities Electricity.

It also said it had beaten leakage targets for the second year running.

However, its pre-tax profits from continuing operations for the year to 31 March fell 5% to £478.3m.

We have had a successful year Philip Green, chief executive, United Utilities United Utilities's share price

United Utilities was created from the merger of North West Water and Norweb in November 1995, and currently has about 3.2 million customers.

The firm said it would make a £1.5bn payment to shareholders this year, following the sale of the electricity business.

The firm invested £826m on its regulated water and wastewater operations, up 45% on the previous year.

"The board expects United Utilities to continue to deliver a strong financial performance over the remainder of this regulatory period, underpinned by allowed price rises to fund substantial investment in our networks," the group added.

Although it had achieved "real progress" in boosting operating performance, the firm said more had to be done after a higher number of sewer flooding incidents during 2007's poor weather.

"We have had a successful year," said boss Philip Green, adding that the firm was confident of further good performance.