United Utilities unveils £800m capital raise, shares soar

(Sharecast News) - Shares in United Utilities Group soared on Thursday, after the water company unveiled plans to raise £800m to help fund a wide-ranging, multi-billion pound investment in its infrastructure. Posting a strategic update alongside full-year numbers, the blue chip - which provides water and waste services to around 7m customers in the north west - said it would seek to raise around £800m by issuing new shares at 5p each.

The proceeds will be used to partially fund a £2.5bn incremental investment programme, which is intended support new housing, industrial growth and clean energy in the region. In total, the capital investment programme for the current five-year regulatory period, known as AMP8 and running to 2030, now stands at £11.5bn.

As at 0945 BST, the stock had spiked 11% at 1,453.58p.

Louise Beardmore, chief executive, said: "One year into our most ambitious investment programme, we have made a strong start delivering £1.5bn of capital investment in the 2026 full year.

"We are committed to supporting a stronger, greener, healthier north west.

"The proposals we have submitted today...represent the first phase of our incremental investment programme and focus on providing the water infrastructure for thousands of new homes, powering data centres, enabling clean energy and strengthening the resilience of our network."

The update came as United Utilities posted a 22% increase in revenue in the year to 31 March to £2.6bn, while earnings before interest, tax, depreciation and amortisation surged 46% to £1.6bn. Growth was driven by higher allowed revenues, which were partially offset by a rise in underlying operating costs.

Pre-tax profits soared 119% to £779m.

Beardmore said: "We already have more than 1,000 projects live across the region, supported by over 100 supply chain partners, and we have delivered our year one regulatory commitments on time."

Russ Mould, investment director at AJ Bell, said: "Plans for a massive flood of investment...has created an unusual level of excitement for a part of the stock market historically seen as pretty boring.

"The plan to support areas like data centres, clean energy and new homes is being taken as a game changer by investors for now, although delivering on this big programme of spending and remaining on time and on budget is the big challenge for the company."

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