At first, stock market traders didn’t know what to make of United Utilities’ interim results on Wednesday, sending the shares down, then up. This is hardly surprising, since the company’s primary duty to supply water to northwest England is enmeshed in a thicket of financial and regulatory vegetation.
Pre-tax profit rose from £212.7 million to £426.3 million for the six months to the end of September thanks to lower net finance expenses, but it made a loss on an underlying basis. Revenue of £919.3 million was down £13 million on a year ago, producing an underlying operating profit of £258.5 million, £74.3 million weaker than before. Net regulatory capital spending was up £31.3 million at £334.5 million. The bottom line was an underlying 1.8p-a-share earnings
