They are a prime target for a takeover. A buy and hold jobby. DYOR

On board as of today. Paid 646. Tried to pick bottom, but failed again.

Interim Management Statement

StockMarketWire.com
Analysts at Deutsche Bank believe the recent announcement from OFWAT on financial parameters and incentives is helping improve regulatory visibility, specifically on returns, and should enable UK water companies to outperform, going forward. The broker believes another likely outcome of the review will be to provide companies with flexibility over cashflow which, in turn, should support steady dividend growth. Deutsche has therefore upgraded its recommendations for Severn Trent (LON:SVT) and Pennon (LON:PNN) to "buy" from "hold" and reaffirmed its existing "buy" rating on United Utilities. Target price have been increased across the board with SVT rising to 2,000 pence per share (from 1,550 pence), PNN to 800 pence (from 650 pence) and UU to 1,000 pence (from 800 pence). "Within a year we believe the sector will have regulatory and dividend visibility and a resumption of bid speculation is possible," the broker said in a note to clients. "These factors could drive a re-rating of listed water stocks to levels comparable with UK and US regulated peers." Given an implied upside of around 30 per cent to its upgraded target price, Deutsche highlights United Utilities as its top pick in the sector.

Final Results

Interim Management Statement and AGM

Trading Statement

Current trading is in line with the group's expectations for the six months
ending 30 September 2014. Customer service continues to improve, underpinned by
good operational and environmental performance. The company remains confident
of delivering its 2010-15 regulatory outperformance targets.

Operational performance

United Utilities has delivered significant improvements in customer service
over the last few years and we continue to make progress, supported by a
further reduction in customer complaints. Our asset serviceability performance
has been good, with all four major asset classes rated either `stable' or
`improving'. This good performance has been recognised in Ofwat's draft
determinations in August, with no penalties relating to the service incentive
mechanism (SIM) or asset serviceability. This is underpinned by top quartile
operational performance, as measured through Ofwat's key performance indicators
and the Environment Agency's assessment.

Capital delivery

Our capital delivery performance in this regulatory period has been good and
planned investment is continuing at high levels, as we invest to maintain and
improve services for customers and deliver further environmental benefits. This
capital programme also makes a significant contribution to the regional
economy, providing new investment and supporting employment. Regulatory capital
investment for 2014/15, including infrastructure renewals expenditure, is
expected to be similar to the high level of investment we made in 2013/14.

Financials

Underlying operating profit for the first half of 2014/15 is anticipated to be
similar to the first half of 2013/14. This principally reflects an allowed
regulated price rise offset by the impact of the previously announced special
customer discount and the expected increase in depreciation and other cost
pressures, including bad debt. The underlying net finance expense for the first
half of 2014/15 is anticipated to be slightly lower than the first half of last
year, primarily reflecting the impact of lower RPI inflation on our
index-linked debt.

As the company continues to invest in its asset base, group net debt at 30
September 2014 is expected to be slightly higher than the position at 31 March
2014. This principally reflects regulatory capital expenditure, payment of the
2013/14 final dividend and payments in relation to interest and taxation,
largely offset by operational cash flows. Gearing remains well within Ofwat's
2010-15 assumed range of 55% to 65% net debt to regulatory capital value. This
supports a solid A3 credit rating for United Utilities Water (UUW). The group
has financing headroom into 2016.

Accounting change

From 1 April 2014, a change under IFRS11 impacts the accounting treatment of
the group's investment in Tallinn Water (moving from proportional consolidation
to equity accounting). As a result, the prior year financial statements will be
re-presented to reflect this, reducing underlying operating profit for the
first half of 2013/14 by around £4 million, but with minimal impact on
underlying profit before tax.

Price review 2014

As part of the 2014 price review process, on 29 August 2014, Ofwat published
its draft determinations for UUW covering the period 1 April 2015 to 31 March
2020. UUW is engaged in detailed dialogue with Ofwat, alongside its on-going
discussions with other stakeholders, with particular focus on the wholesale
total expenditure differences between UUW's business plan and Ofwat's draft
determinations. UUW is scheduled to submit its response to the regulator by 3
October 2014. Ofwat is expected to publish final determinations on 12 December
2014.

United Utilities will announce its half year results on 26 November 2014.

Morgan Stanley Equal weight 807.00 808.00 865.00 875.00 Reiterates

I'm out today Skinny. 911.5 was too tempting. I've had a very good ride up from 646 last December so I can't complain.

Half Year Results

· Operational improvements delivering benefits for customers
o significant improvements in AMP5 on Ofwat's SIM measure recognised in draft determination
o upper quartile performance on Ofwat and Environment Agency KPI assessments
o good asset serviceability performance recognised in draft determination
o reinvesting c£280m of outperformance for the benefit of all stakeholders

· Continued effective delivery of capital investment programme
o strong capital delivery performance; Time: Cost: Quality index (TCQi) remains over 95%
o continued high levels of capital investment, expect to invest c£850m in 2014/15

· Good financials
o underlying operating profit up £3m to £343m, after c£13m one-off special customer discount
o RCV gearing at 57%, within Ofwat's 2010-15 assumed range
o interim dividend of 12.56 pence per share, in line with policy

· Further growth in Business Retail
o most successful new entrant in Scotland
o continuing to offer and develop a range of value-added services

OFWAT PUBLISHES FINAL DETERMINATION FOR UNITED UTILITIES

As part of the 2014 price review process, Ofwat has today, as scheduled, published the final determination for United Utilities Water Limited (UUW) covering the period 1 April 2015 to 31 March 2020.

UUW is reviewing this and has two months in which to consider and decide whether to accept its final determination.

Final Results

· Step change in performance in 2010-15 regulatory period delivers benefits for all stakeholders
o significant customer service improvements, as measured through Ofwat's SIM mechanism
o much improved delivery of capital investment programme; Time:Cost:Quality index above 95%
o investment totalling c£3.8bn over the five years, enhancing assets and services for customers
o upper quartile operational performance on Ofwat and Environment Agency KPI assessments
o strong shareholder returns and dividend policy delivered
o exceeded regulatory outperformance targets, enabling us to reinvest c£280m to benefit customers
o responsible business practice, reflected by Dow Jones Sustainability Index 'World Class' rating

· Strong 2014/15 financial performance
o underlying operating profit up £30m to £664m
o RCV gearing at 59%, well within our target range of 55% to 65%
o final dividend of 25.14 pence per share (total for the year of 37.70 pence), in line with policy

· Good platform to deliver further value in next regulatory period
o already a leading operational performer, providing a solid foundation for further improvements
o 'systems thinking' approach, leveraging technology and data intelligence to improve efficiency
o regulatory capital investment of £3.5bn+; network resilience, customer and environmental benefits
o robust capital structure and strong credit ratings
o dividend growth rate target of at least RPI inflation each year through to 2020
o below inflation growth in average household bills for the decade to 2020

Infected tap water in Lancashire 'must be boiled', authorities say
Panic buying of bottled water starts after United Utilities warn microscopic bug that can cause sickness and diarrhoea has infected all tap water across Lancashire.
Hundreds of thousands of people in Lancashire are being warned to boil their tap water before use to kill a microscopic bug.
Tests at a water treatment plant have found traces of cryptosporidium, which can cause sickness and diarrhoea.
The warning covers a large area of Lancashire including Blackpool, Preston, Chorley and the Fylde coast.
Water firm United Utilities are advising all customers to boil their water for all drinking, food preparation and teeth brushing as a precaution until further notice.
The alert sparked panic buying of bottled water, with stocks snapped up at supermarkets, shops and petrol stations across the county.
Residents can continue to use tap water without boiling for general domestic purposes such as bathing, flushing toilets or washing clothes.

http://www.telegraph.co.uk/news/health/news/11789187/Infected-tap-water-in-Lancashire-must-be-boiled-authorities-say.html

StockMarketWire.com
United Utilities said H1 reported operating profit will be impacted by customer compensation and one-off costs, totalling about £25m, relating to a water-quality incident.

In addition, restructuring costs of around £5m including costs relating to business retail market reform have been incurred in H1. These one-off items will be excluded from the underlying profit measures.

United Utilities said it was very disappointed that a significant water quality incident occurred this summer in parts of the Lancashire region. It continued to investigate, which it had sought to address at the time with precautionary and other measures. Full service was restored early September.

The underlying net finance expense for the first half of 2015/16 is anticipated to be around £20m lower on the year, reflecting the impact of lower RPI inflation on our index-linked debt and a lower rate of interest locked-in on our non index-linked debt.

Group revenue is expected to be similar to the first half of last year, as the impact of lower regulated revenue for 2015/16 is offset by slightly higher non-regulated sales. Underlying operating profit for the first half of 2015/16 is in line with management expectations, albeit lower than the first half of 2014/15. This reflects the new regulated price controls, an expected increase in depreciation and other costs, partly offset by a reduction in bad debts and regulatory fees.

It is anticipated that infrastructure renewals expenditure (IRE) in the first half of 2015/16 will be similar to the first half of last year. In line with our planned phasing, we expect an increase in IRE in the second half of 2015/16, compared with the first half of the year.

StockMarketWire.com
United Utilities has improved its H1 pretax profit to GBP215.6m, from GBP204.7m. It also hiked its interim dividend to 12.81p, from 12.56p. Revenue, however, was marginally lower at GBP857.0m, from GBP859.4m.

CEO Steve Mogford said:
"Our strong performance across 2010-15 means that we enter the next five-year period with good momentum. We were delighted to end last year as one of the top water and wastewater companies, as measured by Ofwat's recently published KPIs and the Environment Agency's latest assessment.

"Investment ahead of the 2015-20 period gave us a smooth start to our five-year programme, which we are accelerating to deliver further improvements for customers and the environment. We expect to invest around £800 million this year.

"Having delivered sector leading improvement in customer satisfaction over recent years, we were disappointed customers in parts of Lancashire were inconvenienced as a consequence of a water quality incident this summer.

"We restored water quality as quickly as possible and full service was resumed by early September. We paid customers compensation and this, along with associated costs, will be borne by the company. We are working closely with the Drinking Water Inspectorate on the incident who will issue its report in due course.

"Our progress over the first six months of this new regulatory period underpins our confidence that our targets remain tough but within reach. We are well placed to deliver further value for customers, shareholders and the environment underpinned by a robust capital structure and good credit ratings."

StockMarketWire.com
United Utilities said current trading is in line with the group's expectations for the year ending 31 March 2016.

"The 2015-20 regulatory price review means our customers are benefiting from lower prices, which came into effect on 1 April 2015, as well as continued substantial investment in our assets," it said in a statement.

Group revenue is expected to be marginally higher than last year, as the impact of lower allowed regulated revenue for 2015/16 is more than offset by higher than assumed volumes and an increase in sales in United Utilities non-regulated business.

Underlying operating profit for 2015/16 is in line with management expectations, albeit lower than 2014/15. This reflects the new regulated price controls, an expected increase in IRE, depreciation, employee and other operating costs, partly offset by a reduction in bad debts and regulatory fees.

In line with United Utilities' planned acceleration, IRE is expected to be around £20 million higher than last year.

Reported operating profit will be impacted by additional costs and asset impairments incurred in relation to the unprecedented flooding incidents which occurred during December 2015, although we expect these charges to be largely offset by insurance proceeds.

Overall, we do not expect these extreme weather events to have a material impact on United Utilities. In addition, as outlined previously, we incurred costs of around £25 million relating to the water quality incident last summer, which were recognised in the first half of the 2015/16 financial year.

Costs relating to business retail market reform are expected to be around £10 million for the full year, of which £5 million was recognised in the first half. To provide a more representative view of business performance, these adjusting items will be excluded from the underlying profit measures.

The underlying net finance expense for 2015/16 is anticipated to be around £20 million lower than 2014/15, reflecting the impact of lower RPI inflation on United Utilities' index-linked debt and a lower rate of interest locked-in on United Utilities' nominal debt.

As the company continues to invest in its asset base, we expect a modest increase in group net debt at 31 March 2016 compared with the position at 30 September 2015.

This principally reflects capital expenditure, payment of the 2015/16 interim dividend and payments in relation to interest and tax, largely offset by operational cash flows. Gearing remains comfortably within United Utilities target range of 55% to 65% net debt to regulatory capital value, supporting a solid A3 credit rating for United Utilities Water.

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2016


Highlights

· Further improvements in customer satisfaction: our best AMP6 score on Ofwat's service incentive mechanism

· Effective acceleration of capital investment continues: £383m invested in first half, c£800m planned for full year

· On track to meet our 2015-20 totex and outcome delivery incentives (ODI) targets

· Innovation and new technology through Systems Thinking approach driving further operational improvements

· Attained industry leading company status as measured by the Environment Agency

· Operating profit slightly ahead of last year

· Good financial performance, robust capital structure and effective pensions hedging

· Interim dividend of 12.95 pence per share, an increase of 1.1% in line with policy

More.....

Macquarie today reaffirms its outperform investment rating on United Utilities Group PLC (LON:UU.) and cut its price target to 1000p (from 1100p).

StockMarketWire.com
United Utilities has posted an improved FY pretax profit of £442.4m, up from £353.5m, in what it said was a strong performance.

Total dividend for the year was 38.87p a share, up 1.1% from 38.45p, and in line with policy. Revenue was £1.70bn, up from £1.73bn.

CEO Steve Mogford said this performance had enabled United to commit to a further £100m of additional investment in the region.

"This will support our resilience projects bringing additional customer benefits over the next three years," he said in a statement.

United had achieved its best ever customer satisfaction scores under Ofwat's Service Incentive Mechanism (SIM). "The acceleration of our investment programme continued delivering the early benefit of operational efficiencies and means we have de-risked a number of our Outcome Delivery Incentive (ODI) measures," said Mogford.

"This contributed to another net ODI reward and improves our likely cumulative outcome over the five-year period. Our Systems Thinking approach is unparalleled in the sector and is delivering a radically different way of managing our business.

"Our performance in the early part of this regulatory period puts us in an industry leading position and demonstrates that we are well placed to deliver further value for customers, shareholders and the environment. This is supported by a robust capital structure and good credit ratings."

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Er Stan - this is the United Utilities thread :-)