WATER and electricity giant United Utilities announced a 14 per cent profits rise today - and hit out at the Government's windfall tax plans.
Profits before tax and special provisions at the group, which includes North West Water and Norweb, increased to £444 million in the year to April.
NWW operating profits rise by 5.2 per cent to £383.3 million in the year and Norweb's first contribution to full year profits was £132.1 million.
Announcing the results, the firm attacked the proposed windfall levy the new Labour government has said it will introduce on privatised companies.
"We do not support the principle of a windfall levy since we do not believe any such windfall has occurred," said chairman Sir Desmond Pitcher.
The company also said today that it believed it would have adequate water supplies for this summer, even if drought conditions seen in 1995 return. Reservoirs in the region are 93 per cent full and the firm said efforts to reduce leaks and find water from new sources had secured enough water to supply a city the size of Liverpool.
"Our customers have responded very positively to our information programme and demand is at a very similar level to that when the hosepipe ban was in force," said the firm.
It was committed to continuing the annual rebate scheme which this year saw a £10 refund for customers.
"Having been the first to introduce such initiatives, we are committed to continuing them dependent on the financial circumstances of the group in the future," the firm said.
Shareholders in the company will see dividends increase by 13.9 per cent to 37.2p a share.
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