INCREASED efficiency and the application of core skills has enabled United Utilities to post increased interim pre-tax profits and turnover for the six months ending September 30.

Profits before tax rose by eight per cent to £163.9 million while turnover from continuing operations went up 20.6 per cent to £912.1 million.

Operating profit from continuing operations, before goodwill and exceptional items, rose by 7.2 per cent to £276.4 million compared with the previous year.

The board has declared an interim dividend of 15.3p per share, an increase of two per cent. United Utilities is a market leader in several businesses, including the provision of gas, water, electricity and telecommunications.

Chief executive John Roberts said: "Six months ago, I reported on the progress we had made in pursuing our strategy to deliver growth by applying our core skills in the expanding support services market and to increase efficiency in our licensed multi-utility operations."

He highlighted what he termed the "significant headway" the group had made despite the uncertain economic environment.

Mr Roberts added: "Looking ahead, there are continuing uncertainties for the UK economy."

Chairman Sir Richard Evans commented: "I am very pleased with the progress the group is making in developing its growth businesses, exploiting the opportunities to deploy its core skills in growth markets and achieving multi-utility efficiency in its licensed businesses."

"The board's confidence in the group's performance is reflected in its decision to increase the interim dividend."