united utilities group plc (UUGWF) Snapshot

United Utilities Group PLC reported consolidated earnings results for the year ended March 31, 2013. For the period, the company reported underlying profit of £607.1 million compared with £594.1 million for the same period last year. Underlying profit before taxation was £354.3 million compared with £327.0 million for the same period last year. Underlying profit after taxation was £266.3 million or 39.1 pence earnings per share compared with £240.9 million or 35.3 pence earnings per share for the same period last year. Revenue was £1,636.0 million compared with £1,564.9 million for the same period last year. Operating profit was £604.5 million compared with £591.5 million for the same period last year. Profit before taxation was £282.3 million or 41.4 pence basic earnings per share compared with £311.4 million or 45.7 pence basic earnings per share for the same period last year. Underlying operating profit increased by 2% to £607 million, primarily as a result of an increase in revenue, largely offset by an expected increase in depreciation alongside higher infrastructure renewals expenditure, power and other operating costs. The company spent £14 million in relation to enhancement CapEx. Net cash generated from operating activities was £631 million, up £71 million compared with last year. This increase was mainly as a result of total pension contributions in this year being £93 million, which was lower than last year when the company paid £150 million. Net debt was £374 million higher than last year-end, reflecting the cash used to help fund the capital investment program and the accelerated pension payments, alongside an increase in the principal of the company's index-linked debt. Purchase of property, plant and equipment amounted to £625.6 million compared to £502.2 million a year ago. Purchase of other intangible assets amounted to £35.3 million compared to £17.3 million a year ago.

United Utilities Group PLC, 2013 Earnings Call, May 23, 2013

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.