United Utilities Group PLC reaffirmed earnings guidance for the year ended March 31, 2013. Current trading is in line with the group's expectations for the year ending March 31, 2013. As indicated previously, revenue is expected to increase at a rate slightly below the allowed regulated price rise for fiscal 2013, principally reflecting the continuing impact of a tough economic climate on commercial volumes. Underlying operating profit is anticipated to be slightly higher than fiscal 2012, despite expected rises in depreciation, power and other costs, as the company continues to tightly manage its cost base. The company has made further progress on its regulatory capital investment programme and now expects to invest at least £750 million in fiscal 2013 compared with £680 million invested in the prior year, as the company continues to invest to maintain and improve services for customers, deliver further environmental benefits and provide a significant contribution to the regional economy. The underlying net finance expense is expected to be moderately lower than last year, mainly reflecting the impact of lower RPI inflation in respect of the group's index-linked debt. The total effective tax rate is expected to be broadly in line with the mainstream rate of corporation tax of 24%. This excludes the adjustment relating to deferred tax in the first half of the year, as a result of the UK Government's staged reduction in the rate of corporation tax. Group net debt at March 31, 2013 is expected to be slightly higher than the position at September 30, 2012. This principally reflects expenditure on the regulatory capital investment programme, payment of the fiscal 2013 interim dividend and payments in relation to interest and tax, largely offset by operational cash flows.

United Utilities Group PLC issued an interim management statement covering the period from October 1, 2012 to January 30, 2013. For the period, the company reported that revenue has continued to increase at a rate slightly below the allowed regulated price rise for fiscal year 2013, as expected, reflecting the on-going impact of a tough economic climate on commercial volumes. Depreciation, power and other costs have also increased as expected, largely offsetting the increase in revenue. The company continues to make good progress on its regulatory capital investment programme and remains on track to invest around £750 million in its asset base in fiscal year 2013. UUW’s significant progress on Ofwat’s customer service measure, the service incentive mechanism (SIM), in fiscal year 2012 has continued into fiscal 2013. United Utilities’ financial position remains robust and its regulatory capital asset base continues to grow, reflecting continued high levels of capital investment and positive RPI inflation. The company reported that group net debt was similar to the position at September 30, 2012. The company also reported that it is confident of delivering a good underlying financial performance for the year ending 31 March 2013 and continues to be on track to meet its 2010-15 regulatory outperformance targets.

Global Infrastructure Partners (GIP) along with Ontario Teachers' Pension Plan (OTPP) and Borealis Exploration Ltd. are speculated to make a takeover offer for United Utilities Group PLC. The consortium has appointed Goldman Sachs and JP Morgan is believed to be willing to provide £5 billion of financing for the deal. Traders believe GIP consortium is willing to submit a bid of between £8 billion and £10 billion for United Utilities. Each member of consortium may pump £1 billion of equity capital to fund the deal.