United Utilities' half-year profit before tax tumbles £41m

United Utilities reported underlying profit before tax for the six months to 30 September 2021 down £41.4m to £196.8m. Revenue for the period was up £37.9m to £932m.

Underlying operating profit for the six months was up £14.3m to £332.8m.

The company forecast £3.9m investment in the half year to drive outcome delivery incentives (ODIs) will be compensated by ODI rewards which it anticipates at about £20m for the full year.

It reported a half-year loss of £1.8m from its share in its Water Plus joint venture with Severn Trent Water – down from a £2.5m profit at the same stage in 2020.

Royal Bank of Canada concluded United Utilities had reported “a solid set of results” adding: “The main call questions are likely to focus on inflation and how United Utilities is performing on its totex targets as it looks to bridge the RoRE gap to listed peers.”