UK-based water supplier United Utilities Group Plc said current trading is in line with the group's expectations of delivering a solid underlying financial performance for the year ending March 31.

United Utilities said it has made good progress in the first year of the 2010-15 regulatory period and will continue with its strong focus on improving operational performance and cost efficiency.

The company said its financial position remains robust and its asset base continues to grow in line with management's expectations, reflecting continued high levels of capital investment.

The group added it has headroom to cover its projected financing needs through to the summer of 2012, in line with its policy of maintaining a healthy level of headroom on a rolling basis.

United Utilities' regulated division manages water and wastewater networks serving 3.2 million customer premises in north west England.

The company remains confident of delivering outperformance over the five-year period., United Utilities said.

Shares of United Utilities ended Tuesday's trading at 555.50 pence on the London Stock Exchange.

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