PROFITS at North West Water rose to almost a million pounds a day despite last summer's drought, it was revealed today.

And the company warned the hosepipe ban will remain in force unless this year's shortages improve significantly.

Although some areas still only have around half their normal water stocks, NWW said it expected to maintain supplies to customers this summer after the start of a £85 million programme to tackle leaks and safeguard supplies. Results announced by United Utilities - the first since the controversial merger of Norweb and NWW - showed turnover of the group rose by 82 per cent to £1.8 billion in the year to March 31.

Operating profits at NWW rose by 4.6 per cent to £364 million and capital investment increased by 18 per cent to £444 million. A five month contribution from Norweb had added £98.9 million to the group's operating profits.

Profits before tax for the group as a whole were down four per cent to £272.6 million after hefty restructuring costs of £123.8 million. Shareholders will receive a increase of 11 per cent in their dividends for the year.

Chairman Sir Desmond Pitcher described it as a "momentous year for the group"

"The acquisition of Norweb and the formation of United Utilities has been accompanied by a strong underlying financial performance."

"The benefits from the integration of Norweb are being achieved at a faster rate and at a higher level than we had projected.

"We remain confident that with the addition of the benefits of the merger with Norweb, real dividend growth in the future in excess of 11 per cent per year is possible."

But he warned that the looming General Election would only add to the political and regulatory uncertainty facing utility companies.

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