Press Association
November 30, 2000--United Utilities is reporting a drop in operating profits over the last half year, as the impact of regulatory reviews takes effect.
At the operating level, profits for the six months to September 30 fell to £278.2 million, against £336.1 million last time.
The group - owner of North West Water - says it is on track to achieve cost savings needed to meet its regulatory targets.
It plans to deliver £40 million cost savings in the year - £28 million from water and £12 million from electricity.
In its water and wastewater arm, turnover fell 9%, to £471.2 million, and operating profits dropped 18% to £201 million.
In its Norweb electricity distribution business, turnover fell by 25% to £130.5 million, while operating profits dropped 23% to £53.1 million.
However, while figures at its regulated businesses fell, its non-regulated telecommunications, business process outsourcing and international arms saw improvements.
At Norweb Telecom, which targets small and medium-sized businesses in the North West and the Midlands, turnover leapt by 43% to £52.9 million, although losses were higher than in the corresponding period last year.
Overall, pre-tax profits for the half year came in at £359.7 million, up from £226.2 million for the same period last year, with this year's figure buoyed by £191.2 million of profit on sale of businesses.
Chief executive John Roberts said: "We have put in place a strategy to fundamentally change the way we do business to meet the regulatory challenges and deliver growth."
(c) Copyright Press Association Ltd 2000, All Rights Reserved.
