Accuracy Coverage Pricing Help Centre Contact

United Utilities announce an interim dividend of 14.20p per share, an increase of 3.2%

Investment Tools Ltd.
United Utilities announce an interim dividend of 14.20p per share, an increase of 3.2%

The United Utilities Board has proposed an interim dividend of 14.20 pence per ordinary share, an increase of 3.2 per cent, in line with their policy of targeting an annual growth rate of at least RPI inflation through to 2020.

Other financial highlights include:

Revenue - revenue was up £19 million, at £936 million, largely reflecting their allowed regulatory revenue changes.

Operating profit - underlying operating profit was up £24 million, at £392 million. This reflects the £19 million increase in revenue and a £13 million reduction in infrastructure renewals expenditure (IRE) partly offset by an £8 million increase in depreciation. Reported operating profit was up £44 million, at £383 million, impacted by the same movements as underlying operating profit as well as the impact of one off costs of £25 million associated with the extreme hot and dry weather incurred in the prior year.

Capex - total net regulatory capital investment in the first half of the year was £323 million including £68 million of IRE. They are on track to deliver a total of around £700 million for the full year, including around £190 million of the £350 million additional investment of outperformance sharing which was not anticipated at the time of the PR14 settlement. Their five-year AMP6 regulatory capex programme is around £3.9 billion including this additional investment.

Profit before tax - underlying profit before tax was up £4 million, at £244 million, largely reflecting the increase in underlying operating profit partly offset by an £11 million increase in the underlying net finance expense and a £6 million share of losses of joint ventures compared with a £3 million share of profits in the first half of last year. The increase in the underlying net finance expense was mainly due to the impact of higher RPI inflation on their index-linked debt. Reported profit before tax was £195 million, reflecting fair value movements and other adjusting items as outlined in the underlying profit measures tables below.

Profit after tax - underlying profit after tax was up by £1 million, at £198 million. Reported profit after tax was lower at £159 million, mainly reflecting fair value movements.

Capital structure - the group has a robust capital structure with gearing of 62 per cent as at 30 September 2019 (measured as group net debt to 'shadow' regulatory capital value, or RCV). Their shadow RCV adjusts for actual spend and was £11.9 billion as at 30 September 2019. This gearing level is comfortably within their target range of 55 per cent to 65 per cent, supporting a solid investment grade credit rating. United Utilities Water Limited (UUW) has long-term credit ratings of A3 on stable outlook from Moody's, A- on negative outlook from Standard & Poor's and a senior debt rating of A- on stable outlook from Fitch.

Financing headroom - the group benefits from headroom to cover its projected needs into 2021, enhanced by the recent raising of new finance. At 30 September 2019, the group had headroom of £716 million consisting of cash and undrawn committed funding, and having taken account of debt maturities due in the next 12 months. This headroom provides flexibility in terms of when and how further debt finance is raised to help refinance maturing debt and support the delivery of their regulatory capital investment programme.

Companies mentioned

Latest News

Investment Tools Limited

International Personal Finance announce, subject to shareholder approval, a final dividend of 7.8 pence per share will be payable, which will bring the full-year dividend to 12.4 pence per share (2018: 12.4 pence per share). The final dividend will be paid on 11 May 2020 to shareholders on the register at the close of business on 14 April 2020. The shares will be marked ex-dividend on 9 April 2020.

Read more
Investment Tools Limited

The Capital & Counties Board has proposed a final dividend of 1.0 pence per share to be paid on 14 May 2020 to shareholders on the register at 17 April 2020. Subject to SARB approval, the Board intends to offer a scrip dividend alternative.

Read more
Investment Tools Limited

Rio Tinto announces full-year ordinary dividend of $6.2 billion (382 US cents per share), including record final ordinary dividend of $3.7 billion (231 US cents per share), resulting in total cash returns of $7.2 billion (443 US cents per share)

Read more
Investment Tools Limited

Town Centre Securities have announcedv their interim dividend of 3.25p per share (2018: 3.25p) will be paid as a property income distribution and will amount to £1.7m.  It will be paid on 26 June 2020 to shareholders registered on 29 May 2020.  The final dividend for 2019 of 8.50p per share was paid on 7 January 2020.

Read more
Investment Tools Limited

The Weir Group Board is recommending a final dividend of 30.45p, resulting in a total dividend of 46.95p for the year, up 2% from 2018 reflecting confidence in the long term prospects of the Group.  Dividend cover (being the ratio of earnings per share from continuing operations, before exceptional items and intangibles amortisation, to dividend per share) is 1.9 times. If approved at the Annual General Meeting on 28 April 2020, the final dividend will be paid on 5 June 2020 to shareholders on the register on 24 April 2020. 

Read more
Investment Tools Limited

Restaurant Group announce a temporary suspension of their dividend to facilitate strategic priorities

Read more
Investment Tools Limited

The Directors propose to pay a final dividend of 10.3 cents per share in respect of the year ending 31 December 2019 (payment of $104.6m). Combined with the interim dividend of 4.4 cents per share paid in October 2019 (payment of $43.2m), gives a total dividend for the financial year of 14.7 cents (total payment of $147.8m), which represents 40% of the Group's levered free cash flow for the period in accordance with the Company's dividend policy.

Read more
Investment Tools Limited

The proposed final dividend of 5.34p will, subject to shareholder approval, be paid on 4 June 2020 to all shareholders on the register on 24 April 2020.

Read more
Investment Tools Limited

Subject to shareholder approval each year, the Company will pay an ordinary dividend of approximately 7.5% of Group net assets, which will be at least £250 million per annum. This is intended to provide a reliable minimum annual return to shareholders throughout the cycle, including through a 'normal downturn', and will be paid equally as a final dividend (in May) and as an interim dividend (in November). This Ordinary Dividend Policy was subject to prudent and comprehensive stress testing against various downside scenarios, which also included a reduction of 20% in average selling prices and a 30% reduction in volumes. 

Read more
Investment Tools Limited

Unite Group are proposing a final dividend payment of 22.95 pence per share (2018: 19.5 pence), making 33.2 pence for the full year (2018: 29.0 pence). The final dividend will be fully paid as a Property Income Distribution (PID) of 22.95 pence.

Read more
More News