The United Utilities Group PLC Board has proposed a final dividend of 30.34 pence per ordinary share in respect of the year ended 31 March 2023. Taken together with the interim dividend of 15.17 pence per ordinary share, paid in February, this results in a total dividend per ordinary share for 2022/23 of 45.51 pence. This is an increase of 4.6 per cent compared with the dividend relating to last year, in line with the group's dividend policy of targeting a growth rate of CPIH inflation each year through to 2025. The 4.6 per cent increase is based on the CPIH element included within allowed regulated revenue for the 2022/23 financial year (i.e. the movement in CPIH between November 2020 and November 2021).
Other financial highlights include:
Revenue in line with guidance -2% to £1,824m largely reflecting lower consumption more than offsetting the allowed regulatory revenue increase. "Around £40m of the reduction will be recoverable in two years' time under the revenue control."
Underlying operating profit of £441m, down from £610m driven by lower revenue and the inflationary impact on operating costs, in particular procurement of electricity and chemicals.
Underlying EPS of -1.3p, down from 53.8p due to the impact of inflation on debt indexation and the operating result.
Return on regulated equity (RoRE) +3% to 11.0% real for 2022/23, reflecting strong financing, customer ODI and tax outperformance which more than outweighed total expenditure (totex) underperformance driven by additional investment in service and environmental improvements.
Strong balance sheet with RCV +10.0% to £14.0bn and RCV gearing at 58%, slightly lower than the prior year equivalent 59% and within their target range of 55-65%.
ODI reward in line with guidance at approximately £25m for FY23.
