Operational performance
Better Rivers: Better North West commitments achieved
Definition
The percentage of 2022/23 milestones delivered as part of our Better Rivers programme.
Target
95% of programme milestones delivered by 2025
Annual performance
100%
of 2022/23 commitments
All of this year’s milestones have been delivered including hosting our first Environmental AGM, publishing our Better Rivers report and undertaking our first citizen science event at Windermere.
2021/22: new measure
2020/21: new measure
Link to material issues
- Storm overflows
- Political and regulatory environment
- Trust, transparency and legitimacy
Link to risks
- Wastewater service
- Political and regulatory
Link to remuneration
- Bonus
Assurance
- Independent third-party verification
Status
Met expectation/target
Carbon pledges
Definition
Progress against our green fleet, peatland restoration and woodland creation pledges, and supplier engagement in relation to setting science-based targets.
Target
Individual carbon pledge targets
Annual performance
Good progress
We have plans for 200 electric vehicles in the next 18 months, are more than halfway to our 2030 peatland target, and are making good progress on woodland creation. We are working with construction partners, with 23 per cent having set science-based targets.
2021/22: Pledge 2 met
2020/21: Pledge 6 met
Link to material issues
- Climate change
- Resilience
- Trust, transparency and legitimacy
Link to risks
- Supply chain and programme delivery
Link to remuneration
- LTP
Assurance
- Independent third-party verification
Status
Met expectation/target
EA’s Environmental Performance Assessment (EPA) rating1
Definition
The Environment Agency’s annual assessment across six key sector environmental performance measures.
Target
Upper quartile performance within the water industry each year
Annual performance
Top 4* rating
The most recent assessment is for 2021, when we were awarded the maximum four stars for the second year running, meaning we were classed by the Environment Agency as an industry-leading company. The EA will publish its annual assessment for 2022 in July 2023.
2021/22: Joint first
2020/21: Joint first
Link to material issues
- Customer service and operational performance
- Trust, transparency and legitimacy
- Political and regulatory environment
Link to risks
- Wastewater service
- Political and regulatory
Link to remuneration
- LTP
Assurance
- Independent third-party verification
Status
Met expectation/target
1Measure relates to United Utilities Water Limited.
Colleague engagement
Definition
Level of colleague engagement as measured by our annual colleague opinion survey.
Target
At least as high as Utilities norm benchmark
Annual performance
82%
We have achieved a strong set of results this year, scoring well against external benchmarks, and despite falling slightly since last year our overall engagement score is higher than both the UK norm and Utilities norm benchmarks.
2021/22: 87%
2020/21: 89%
Link to material issues
- Colleague engagement
- Diverse and skilled workforce
- Health, safety and wellbeing
Link to risks
- Resources
- Health, safety and environmental
Link to remuneration
- n/a
Assurance
- Independent third-party verification
Status
Met expectation/target
C-MeX ranking1
Definition
Ofwat’s customer measure of experience (C-MeX), comprising two surveys – the customer service survey, and the customer experience survey.
Target
Upper quartile against water and sewerage companies (WASCs)
Annual performance
2nd quartile
We continue to be the highest performing listed company, ranked fourth out of the WASCs, and fifth out of all 17 companies. We expect to achieve a £3 million reward for C-MeX this year.
2021/22: 4th WASC, top listed company and 7th overall, earning £2.3 million reward
2020/21: 4th WASC, top listed company and 5th overall, earning £2.1 million reward
Link to material issues
- Customer service and operational performance
- Trust, transparency and legitimacy
- Political and regulatory environment
Link to risks
- Water service
- Wastewater service
Link to remuneration
- Bonus
Assurance
- Independent third-party verification
Status
Close to meeting expectation/target
1Measure relates to United Utilities Water Limited.
Customers lifted out of water poverty1
Definition
Where our support acts to lift a customer out of water poverty which is defined as spending more than 3 per cent of income on their water bill.
Target
At least 66,500 customers lifted out of water poverty by 2024/25
Annual performance
84,002
We have helped more than 80,000 customers out of water poverty. The increase on last year has been driven by the number of customers supported via lower bill tariffs following wider increases in the cost of living.
2021/22: 77,312
2020/21: 71,057
Link to material issues
- Affordability and vulnerability
- Customer service and operational performance
- North West regional economy
Link to risks
- Retail and commercial
- Political and regulatory
Link to remuneration
- LTP
Assurance
- Independent third-party verification
Status
Met expectation/target
1Measure relates to United Utilities Water Limited.
Capital programme delivery incentive (CPDi)
Definition
Measures the extent to which we have delivered our capital projects efficiently, on time, and to the required quality standard.
Target
At least 85%
Annual performance
92.9%
We have delivered strong performance of 92.9 per cent against the new CPDi measure.
2021/22: n/a
2020/21: n/a
Link to material issues
- Customer service and operational performance
- Financial risk management
- Corporate governance and business conduct
Link to risks
- Finance
- Supply chain and programme delivery
Link to remuneration
- Bonus
Assurance
- Internal audit team
Status
Met expectation/target
Community investment
Definition
Total community investment as measured by the Business for Social Impact (B4SI) method.
Target
Average community investment between 2020 and 2025 to be at least 10 per cent higher than the average between 2010 and 2020 of £2.56 million per annum
Annual performance
£2.88m
This year our direct community investment calculated using the B4SI method was above the £2.82 million target.
2021/22: £2.82 million
2020/21: £2.15 million
Link to material issues
- Supporting communities
- Trust, transparency and legitimacy
- Land management, access and recreation
Link to risks
- Land management, access and recreation
Link to remuneration
- n/a
Assurance
- Independent third-party verification
Status
Met expectation/target
Performance across a range of trusted investor indices
Definition
Company performance relative to water and utilities sector participants in a selection of trusted investor ESG ratings and indices.
Target
Upper quartile
Annual performance
Upper quartile
We have maintained upper quartile performance across our selection of ESG ratings and indices
2021/22: Upper quartile
2020/21: Upper quartile
Link to material issues
- Trust, transparency and legitimacy
- Corporate governance and business conduct
- Political and regulatory environment
Link to risks
- Conduct and compliance
- Health, safety and environmental
Link to remuneration
- n/a
Assurance
- Independent third-party verification
Status
Met expectation/target
Financial performance
In 2022/23 we had a £70 million increase in the revenue cap due to regulatory adjustments, incorporating £21 million in relation to ODI rewards earned in 2020/21 and a 4.6 per cent CPIH-linked increase partly offset by 1.3 per cent real reduction in allowed wholesale revenues as set out in our PR19 Final Determination.
| Year ended 31 March Continuing operations |
2023 £m |
2022 £m |
2021 £m |
2020 £m |
2019 £m |
| Revenue | 1,824.4 | 1,862.7 | 1,808.0 | 1,859.3 | 1,818.5 |
| Reported operating profit | 440.8 | 610.0 | 602.1 | 630.3 | 634.9 |
| Underlying operating profit | 440.8 | 610.0 | 602.1 | 732.1 | 677.6 |
| Reported profit before tax | 256.3 | 439.9 | 551.0 | 303.2 | 436.2 |
| Underlying profit before tax | (34.3) | 301.9 | 460.0 | 534.8 | 500.9 |
| Reported profit after taxation | 204.9 | (56.8) | 453.4 | 106.8 | 363.4 |
| Underlying profit after tax | (8.7) | 367.0 | 383.0 | 486.3 | 449.5 |
| Reported earnings per share (basic) | 30.0p | (8.3)p | 66.5p | 15.7p | 53.3p |
| Underlying earnings per share | (1.3)p | 53.8p | 56.2p | 71.3p | 65.9p |
| Dividend per ordinary share | 45.51p | 43.50p | 43.24p | 42.06p | 41.28p |
| Non-current assets | 13,825.8 | 13,823.2 | 13,166.2 | 13,215.7 | 12,466.4 |
| Current Assets | 691.4 | 613.8 | 1,012.9 | 828.4 | 721.4 |
| Total assets | 14,527.2 | 14,437.0 | 14,179.1 | 14,044.1 | 13,187.8 |
| Non-current liabilities | (11,442.6) | (10,791.5) | (10,152.6) | (9,877.3) | (9,025.0) |
| Current liabilities | (575.9) | (688.6) | (995.5) | (1,204.7) | (1,052.0) |
| Total liabilities | (12,018.5) | (11,479.6) | (11,148.1) | (11,082.0) | (10,077.0) |
| Total net assets and shareholders' equity | 2,508.7 | 2,957.4 | 3,031.0 | 2,962.1 | 3,110.8 |
| Net cash generated from operating activities | 787.5 | 934.4 | 859.4 | 810.3 | 832.3 |
| Net cash used in investing activities | (593.4) | (639.7) | (549.3) | (593.9) | (627.7) |
| Net cash (used in)/generated from financing activities | (85.0) | (809.7) | (89.7) | (27.8) | (377.4) |
| Effects of exchange rates | (1.3) | 1.5 | – | – | – |
| Net (decrease)/increase in cash and cash equivalents | 107.8 | (513.5) | 220.4 | 188.6 | (172.8) |
| Net debt | 8,200.8 | 7,570.0 | 7,305.8 | 7,227.5 | 6,990.4 |
| RCV gearing(1) (%) | 58% | 59% | 63% | 61% | 60% |
- Regulatory capital value (RCV) gearing is calculated as group net debt (see the notes to our financial statements, note A2), adjusted for loan receivables from joint ventures, divided by the RCV (as adjusted for actual spend and timing difference) of United Utilities Water Limited, including the expected value of AMP7 ex-post adjustment mechanisms. Prior year figures have been re-presented for comparative purposes.
Customise your view
Select indicators
Continuing operations
Select years
Our performance in 2022/23
Financial statements