StockMarketWire.com - United Utilities has warned investors to expect lower-than-expected operating profits for the first six months of its 2020/21 financial year, due to lower water consumption by businesses in the Covid-19 lockdown period.

In a trading update, ahead of its results on 25 November 2020, it said underlying operating profit would be down for the first half of the year, due to 5% lower revenues and an increase in infrastructure renewals expenditure.

The company said that the cost of borrowing in the first half of the year, had improved, however.

The rate of inflation applied to the company’s index-linked debt was lower for the first six months of its financial year, which translates to a £30 million cost saving when compared with the the same period a year earlier.



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