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    Iain Turner

    Research Analyst at Exane

    Iain Turner's questions to United Utilities Group (UUGRY) leadership

    Iain Turner's questions to United Utilities Group (UUGRY) leadership • FY 2017

    Question

    Iain Turner of Exane asked for details about the announced £100 million of additional capital expenditure, questioning what the funds would be spent on and how this investment would impact the company's Outcome Delivery Incentives (ODIs) and other performance measures.

    Answer

    CEO Steve Mogford clarified that the £100 million investment is for new projects not covered by the PR14 settlement, focused on enhancing water resilience against climate change and population growth. He stated the primary driver is to de-risk the business for long-term shareholder benefit, which will in turn positively influence operational metrics and reduce the risk of penalties, though it's not designed to simply soften existing targets.

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    Iain Turner's questions to United Utilities Group (UUGRY) leadership • Q2 2016

    Question

    Iain Turner asked for clarification on the £46 million loan to the Water Plus JV, questioning whether it represents extra working capital and IT investment above what was previously required for the non-household retail business.

    Answer

    CFO Russ Houlden explained that the loan is primarily related to financing the working capital of the JV, as required by the new regulatory model that dictates how risk is shared between the retailer and wholesaler. CEO Steven Mogford added that while it's a transaction between the parent and the JV, it's a 'zero-sum gain' in the overall group financial picture.

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    Iain Turner's questions to United Utilities Group (UUGRY) leadership • H1 2016

    Question

    Iain Turner from Exane requested an update on bathing water quality performance under new legislation and asked if the pressure to change the company's pension scheme was coming from the regulator, Ofwat.

    Answer

    CEO Steve Mogford reported a good bathing water season, particularly in Blackpool, aided by prior investments and dry weather, but noted it remains a key focus. He clarified that the decision to review the defined benefit pension scheme was an internal one based on its long-term sustainability and was not driven by any requirement from Ofwat.

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