WATER firm United Utilities increased turnover last year but its profits took a £62million hit.

The company, which supplies water to North West homes, yesterday announced revenues of £2.44billion for the year ending on March 31, slightly up from £2.43billion in 2008/09.

But pre-tax profits dropped from £568million to £506million.

Underlying profits, which exclude one-off outlays, reduced from £570million to £532million.

However, company bosses insisted the firm was “well positioned” for the future after agreeing price limits for the next five years with water regulator Ofwat.

Chairman Philip Green said: “We are implementing a range of detailed efficiency and performance improvement initiatives and believe we can deliver outperformance in respect of the new regulatory contract.”

He added: “Overall, we are well positioned for the next five years.”

United Utilities also revealed yesterday in its annual report that 500 employees left the company last year.

The Warrington-based firm is the only one in the North West listed on the FTSE 100.