British water supply company United Utilities (LON:UU) said its revenues had slipped during the course of 2017, but would still manage to post underlying profit in line with expectations.

Expenditure increased at the company during the second half of the year, particularly on infrastructure renewals expenditure, but spending for the full year was likely to remain in line with targets.

Revenue was hit by regulatory revenue changes, but the drop was partly offset by a one-off accounting gain from its Water Plus retail joint venture. United Utilities also said it expected to increase the company’s regulatory capital value by around £400 million, due to the increase in retail price index inflation. Due to hedging, however, the company expects its underlying net finance expense to be around £40m higher than last year.

United Utilities said would be submitting its 2019 price review (PR19) business plan in September and it was “confident” of delivering against Ofwat’s themes.

Shares in United Utilities are currently trading up 0.34 percent at 658.20 (0826GMT).