Join our community of smart investors

United Utilities accelerates investment

The water group has committed to an additional £100m-worth of investment for the next three years
May 30, 2017

United Utilities (UU.) is confident it can outperform against its outcome delivery incentive targets during the current AMP6 regulatory period, having recently achieved its best ever customer satisfaction scores under Ofwat's qualitative service incentive mechanism. This is judged according to customer feedback and ended in an upper-quartile performance for the company against its peers. What's more, management has committed an additional £100m in efficiency improvement investment during the next three years to make sure it can keep this up.

IC TIP: Buy at 1035p

Other improvements last year included a 27 per cent reduction in complaints and a 55 per cent decline in issues not resolved at first contact. Operational improvements resulted in a net reward of £6.7m, which exceeded management's expectations. It also made progress in reducing bad debt to 2.5 per cent of regulated revenue, from 3 per cent the previous year.

This is subscriber only content
Start your trial to keep reading
PRINT AND DIGITAL trial

Get 12 weeks for £12
  • Essential access to the website and app
  • Magazine delivered every week
  • Investment ideas, tools and analysis
Have an account? Sign in