Costs grow and pre-tax profits fall at United Utilities
- Growth in reported operating profit
- Opex to outstrip inflation
From a PR perspective, it has been a disastrous week for United Utilities (UU.). The BBC recently revealed that the water company failed to stop the overflow of sewage into Windermere, England’s largest lake, for 10 hours in February. While these incidents don’t always send the share price downward, the optics aren’t great given the company’s numerous claims to environmental responsibility.
In its full-year results, the group boasted of strong leakage performance in FY2024, stating that it fixes six of these issues every 30 minutes. Management also expects another four-star ranking (ie the highest possible) in a forthcoming assessment by the Environment Agency. Reputational woes aside, the investment case for the company remains somewhat shaky.