Water firm United Utilities has revealed plans to raise £800 million through a share sale as it looks to boost its network and supply across the North West in a move set to create 4,000 jobs.
The group said the retail offering – which is already underpinned by a £400 million cornerstone investment from Atlas Infrastructure – will help finance around an extra £2.5 billion in investment to upgrade its infrastructure.
This will focus on bolstering its water and sewage network resilience and adding extra capacity for growth in housing, data centres and clean energy.
The group – the UK’s largest listed water supplier with around seven million customers – said the plans, which were sent to regulator Ofwat, will create another 4,000 jobs on top of the 30,000 already supported by its existing five-year investment plans.
Louise Beardmore, chief executive of United Utilities, said the plans are “critical to the development of homes, data centres and clean energy” in the North West.
She added: “This focused, disciplined and well-funded plan will help us accelerate delivery of the transformation in infrastructure and services that the North West expects and deserves.”
The group said its investment will deliver new water infrastructure for data centres in east Manchester, costing around £200 million, water supply to the clean energy programme in Ellesmere Port, Cheshire, at around £220 million, and wastewater treatment capacity upgrades at 34 sites to support 66,000 new homes across the region, with about £350 million earmarked.
Water firms are spending heavily to upgrade their network after the sector has come under fire over supply outages, pollution and sewage spills in recent years.
A raft of utility groups have launched equity fundraisings in recent years to help fund investment, such as South West Water owner Pennon Group’s rights offering that raised £490 million last year.
Households have also been hit with eye-watering bill hikes as part of the upgrade plans.
United Utilities raised customer bills by 9% from April, adding about £57 to household annual bills, under five-year plans agreed with Ofwat.
The firm supplies the vast majority of the North West, including Greater Manchester, Cumbria, Lancashire and Merseyside.
In annual results also posted by the firm on Thursday, the group reported a more than doubling of pre-tax profits to £779 million in the year to March 31 as revenues rose 22%.
On an underlying basis, it said profits lifted 44% on revenues up 20%.
Shares in the FTSE 100 firm jumped 11% in morning trading on Thursday.