United Utilities says inflationary pressures will offset higher revenues this year
The UK’s largest water company, United Utilities, has said it expects its higher revenues, which expects to post as part of its financial results in May, will be offset by higher costs, linked to mounting inflationary pressures.
The Warrington headquartered utility said current trading is in line with expectations for the financial year ending on 31 March 2022, as it said it expects its total revenues will be three per cent higher than last year.
However, the utility company said that while group revenues are expected to be three per cent than last year, the group’s underlying profit will remain the same, as higher revenues will offset by higher core costs.
The firm, which supplies water to more than seven million people, said higher costs – which were largely the result of inflationary pressures – will offset the firm’s higher revenues.
United Utilities said it expects its cost will be £175m more than last year, as it said it expects its debt to increase compared to last year.