United Utilities has recorded a 17.5% rise in underlying operating profits to £517.8m in its latest full-year results.

The North West water company has announced its results in the year to 31 March in the same week it has been embroiled in controversy over a sewage spill at Windermere in the Lake District.

The BBC reported that a fault at a pumping station in Cumbria meant millions of litres of raw sewage had been illegally pumped into Lake Windermere for 10 hours in February.

However, United Utilities’ CEO, Louise Beardmore, said the company had worked “exceptionally hard” to “deliver for customers, communities and the environment”, as it reported annual revenue growth of 8.1% to £1.9bn.

“We take our role in protecting the environment very seriously,” Beardmore said.

“Our finances are robust with one of the lowest levels of gearing in the sector. We are readying our supply chain, and bringing forward around £400 million of AMP8 investment to reduce spills at more than 150 storm overflows, and to accelerate environmental schemes in communities such as Windermere, where we are fast-tracking investment to drive improvements earlier.”

Equity analyst at Hargreaves Lansdown, Aarin Chiekrie, commented that United Utilities was “showing no leaks in its profit pipeline” last year.

“The UK water sector continues to find itself in the spotlight, and there’s significant work to do in restoring public confidence and trust,” Chiekrie said. “But United Utilities looks like it’s ready for the fight, bringing forward £400m of investment to the current year to help reduce its use of storm overflows at a faster pace.

Chiekrie added: “Alongside strong cash generation, the group’s debt levels remain within the lower half of its target range, which supports its ambitious £13.7bn plans to expand and upgrade its assets between 2025-2030.”

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