: Utilities to meet profits target.

WATER and electricity provider United Utilities said yesterday that it expected to deliver half-year results in line with market expectations.

The Warrington-based multi-utility reported steady growth across the group for the six months to September, but revealed that it had pulled out of the turbulent South American market to concentrate on the UK and eastern Europe.

Chief executive John Roberts said: ``In our regulated businesses, we have made sound progress towards delivering our pounds 480m operating cost savings target in the current regulatory period, and our focus is now shifting towards the future.

``We are taking a forwardlooking approach to asset management by building the foundation for future cost savings now.''

Mr Roberts added that Vertex, United's outsourcing business, had seen its order book increase by over 35pc during the first half of the year, boosted by major public sector contract wins with Westminster City Council and the Department of Work and Pensions.

The company said it is ending its role as technical operator in the Argentinian electricity utility IEBA which defaulted on repayments to bondholders last month.

The move marks the final step in the group's exit from asset management operations in the United States.