United Utilities pays telecoms price
UNITED Utilities has become the latest power company to take a hit on its venture into telecoms. The group said today that it was taking a £25.5m write-down on the value of its Your Communications business. It has also taken a £3m hit for redundancy costs in a restructuring of the loss-making business.
United has invested £220m in the business, which offers telephone and data services to public sector organisations and smaller companies in the North-West.
The write-down values it at just over £200m. United chief executive John Roberts, said, however, that given the carnage elsewhere in the telecoms sector he believed it would be viewed as a 'modest revaluation'.
Your Communications has halved operating losses but still lost £10m for the half-year. Roberts said it would break even in the next financial year.
Profits at United's other non-regulated businesses - utility servicesa nd call centre customer management services - offset falling profits at its core North West England water and power transmission businesses. Group underlying pre-tax profits rose 1% to £164m in the six months to September. The interim dividend is up 1.3% to 15.5p.
United received a £34m gain from its exit in the autumn from its Argentina energy interests, having previously taken a provision against its exposure there.
KELDA, the Yorkshire Water company which is knocking on the door of the FTSE 100, struck a bullish note today after getting the go-ahead last month to charge its household customers more money.
It said operating efficiencies meant Yorkshire Water would outperform its regulator-set price formula by £80m over the five years to 2005. Group profits in the six months to the end of September rose 3% to £94m. The interim dividend is lifted 2.1% to 7.86p.
