Annual report blames recession for slower projected growth and cancelled projects

United Utilities is to cut its capital spending programme from a planned 拢4.03bn to 拢3.7bn between 2010 and 2015. In its annual report for the year ending 31 March, it said: 鈥淭he cuts were a result of efficiency gains of 拢130m, deferral and cutting of projects worth 拢433m, the impact of the recession on the company鈥檚 growth plans, accounting for 拢119m and greater future efficiency (拢130m)."

It continued: 鈥淭he total proposed capital expenditure programme in the final plan is 拢3,704 million, compared with 拢4,035 million in the draft plan, partly offset by the inclusion of further projects relating to sewer overflows.鈥�

The firm also plans a 1.5% annual improvement in 鈥渦nderlying operating efficiency.鈥�

Profit growth at the utilities firm grew by 12% last year from 拢3.7bn to 拢4.03bn. Underlying pre-tax profit also rose by 12% to 拢532m.

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