Guy MacKenzie's questions to United Utilities Group (UUGRY) leadership • Q2 2016
Question
Guy MacKenzie asked about the company's confidence in its TotEx guidance given new initiatives like DfMA, the reasons for the year-on-year decline in JV profits despite the Water Plus JV, and the company's view on the potential for household retail competition.
Answer
CEO Steven Mogford confirmed that initiatives like DfMA were part of the original plan to meet the tough TotEx target and that the company remains confident in closing the gap. He also discussed the complexities of opening the household retail market. CFO Russ Houlden explained that the JV profit figure was impacted by one-off costs, interest, and tax related to the new Water Plus entity, but its underlying performance is in line with expectations.