Steve Mogford, Chief Executive Officer, said:
"We have continued to deliver a better service to our customers and invest substantially in our network. Our sustained focus on operational performance across a broad front has seen us make a further improvement on Ofwat's service incentive mechanism, building on a marked improvement last year, coupled with a strong performance on Ofwat's overall KPIs assessment. Furthermore, we see plenty of scope to deliver additional improvements for customers.
"We are continuing to invest in our network for the benefit of our customers, the environment and the local economy. Since the start of the regulatory period in 2010, we have invested over £1.6 billion as we have sought to deliver a smoother and more effective investment profile. In the first half of this year, we have invested £354 million and now expect to invest around £750 million for the full year. In addition, we are on track to meet our regulatory leakage target for the seventh consecutive year.
"United Utilities is committed to continued positive engagement to support the progressive evolution of regulation in the water industry and we have submitted proposals to Ofwat in respect of its recent licence modifications consultation. We support the progression of retail competition for business customers and have already assembled a strong team. We have won our first customer out of our region and intend to pursue further opportunities as the market evolves.
"The recent progress we have made reinforces our confidence in delivering our 2010-15 regulatory outperformance targets. Alongside our operational and customer service improvements, we have delivered another good financial performance despite a tough economic environment."
Outlook
Our sustained focus on operational performance and customer service is delivering results. We have improved further on Ofwat's service incentive mechanism and have delivered a strong operational performance, as measured by Ofwat's overall KPIs assessment. We are encouraged by the progress we have made and believe there is plenty of scope for further improvement. In addition, we are on track to meet our regulatory outperformance targets, with substantial financing outperformance already secured. We have a robust capital structure and intend to continue with our dividend policy of targeting 2% per annum growth above the rate of RPI inflation through to at least 2015. We are committed to continued positive engagement with government and regulators to support the progressive evolution of the water industry, as we aim to achieve the optimal outcome for all our stakeholders.
Dividend per share
The board has declared an interim dividend of 11.44 pence per ordinary share in respect of the six months ended 30 September 2012. This is an increase of 7.2%, compared with the interim dividend relating to the previous year, in line with group's dividend policy of targeting a growth rate of RPI+2% per annum through to at least 2015. The inflationary increase of 5.2% is based on the RPI element included within the allowed regulated price increase for the 2012/13 financial year (i.e. the movement in RPI between November 2010 and November 2011).
The interim dividend is expected to be paid on 1 February 2013 to shareholders on the register at the close of business on 21 December 2012. The ex-dividend date is 19 December 2012.
