UNITED Utilities, the water and energy supplier, indicated plans today to sell out of Thus, the corporate telecoms provider, as it unveiled better-than-expected results helped by a rise in water bills.

The energy group took a 22 per cent stake in Thus as part of a deal to offload its own telecoms arm, Your Communications, to the Scottish spin-off. United today said the stake was "non-core" to it business.

A lock-out agreed under its deal with Thus ends in February.

Philip Green, chief executive of United Utilities, said: "We are locked in until February but we are clearly flagging
today that it is non-core to our business."

Analysts at Goldman Sachs had previously suggested that United was likely to communicate to the market an intention to dispose of assets including its Thus stake.

United Utilities, which provides water, gas and electricity distribution services, alongside business process outsourcing and asset management services, has also put Vertex, its outsourcing unit, on the blocks.

The unit could fetch up to £340 million, analysts believe.

News of the disposals came as the group, unveiled a 14 per cent rise in first-half pre-tax profit, fuelled by an 8.8 per cent rise in water bills.

Pre-tax profit in the six months to the end of September hit £282 million, up from £244 a year earlier. Analysts had forecast profit of around £268 million.

The group, whose shares have risen more than 15 per cent in the past three months, is confident of meeting its targets for the full year.

Philip Green, who took over as chief executive of United in March, said the move to offload Vertex was part of its plans to focus on its "core skills of managing water, wastewater, electricity and gas networks."

The group is to pay an interim dividend of 14.63p per share, up 2.4 per cent.

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