United Utilities has announced plans to raise £800 million through a share sale as part of its strategy to strengthen its water and sewage network across the North West, a move expected to create 4,000 jobs.
Investment details
The company stated that the retail offering, already backed by a £400 million cornerstone investment from Atlas Infrastructure, will help finance an additional £2.5 billion in investment to upgrade its infrastructure. The funds will be used to enhance the resilience of its water and sewage network and increase capacity to support growth in housing, data centres, and clean energy.
Job creation and regulatory approval
United Utilities, the UK's largest listed water supplier serving approximately seven million customers, said the plans, submitted to regulator Ofwat, will generate 4,000 new jobs on top of the 30,000 already supported by its existing five-year investment plans.
Louise Beardmore, chief executive of United Utilities, described the plans as "critical to the development of homes, data centres and clean energy" in the North West. She added: "This focused, disciplined and well-funded plan will help us accelerate delivery of the transformation in infrastructure and services that the North West expects and deserves."
Specific investments
The group outlined several key projects:
- New water infrastructure for data centres in east Manchester, costing around £200 million.
- Water supply for the clean energy programme in Ellesmere Port, Cheshire, at approximately £220 million.
- Wastewater treatment capacity upgrades at 34 sites to support 66,000 new homes across the region, with about £350 million allocated.
Industry context
Water companies are investing heavily to upgrade their networks following criticism over supply outages, pollution, and sewage spills in recent years. Several utility groups have launched equity fundraisings to support such investments, including South West Water owner Pennon Group, which raised £490 million through a rights issue last year.
Customer bill increases
Households have faced significant bill hikes as part of the upgrade plans. United Utilities increased customer bills by 9% from April, adding approximately £57 to annual household bills, under five-year plans agreed with Ofwat.
The company supplies the vast majority of the North West, including Greater Manchester, Cumbria, Lancashire, and Merseyside.
Financial results
In its annual results released on Thursday, United Utilities reported a more than doubling of pre-tax profits to £779 million for the year ending March 31, with revenues rising 22%. On an underlying basis, profits increased 44% on revenues up 20%.
Shares in the FTSE 100 company jumped 11% in morning trading on Thursday.
