The latest trading update published today by United Utilities says current trading is in line with the group’s expectations for the year ending 31 March 2015 - with customer service a primary focus.

The update says that over the last four years, United Utilities has delivered significant operational performance and customer service improvements and has exceeded its 2010-15 regulatory outperformance targets. 

Commenting on operational performance and customer service, the water company said the latter remains a primary area of focus with continuing progress, reflected in a further reduction in customer complaints.  Under Ofwat’s key indicators, United Utilities’ asset serviceability performance has been good, with all four major asset classes rated either ‘stable’ or ‘improving’.

Regulatory capital investment for 2014/15, including infrastructure renewals expenditure and transitional investment, is expected to be over £850 million.

 Revenue this year is expected to be slightly higher than last year, reflecting the regulated price allowance for 2014/15 partly offset by the impact of the previously announced one-off special customer discount of around £20 million. The update says:

 “We expect a modest increase in underlying operating profit for 2014/15, compared with last year, as we continue to tightly manage our cost base despite the expected increase in depreciation and other cost pressures, including bad debts.  As planned, there has also been a moderate reduction in infrastructure renewals expenditure this year as we transition from this regulatory period to the next. “

 Gearing remains well within a target range of 55% to 65% net debt to regulatory capital value, supporting a solid A3 credit rating for United Utilities Water.

 United Utilities will announce its full year results on 21 May 2015.