Group revenue is expected to be slightly lower than the first half of last year, reflecting the accounting impact of our Water Plus business retail joint venture, which completed on 1 June 2016, partly offset by our allowed regulatory revenue changes.
Underlying operating profit for the first half of 2016/17 is expected to be marginally higher than the first half of 2015/16. It is anticipated that infrastructure renewals expenditure (IRE) in the first half of 2016/17 will be slightly lower than the first half of last year. In line with our planned capital investment phasing, we expect an increase in IRE in the second half of 2016/17, compared with the first half of the year.
The underlying net finance expense for the first half of 2016/17 is anticipated to be around £20 million higher than the first half of last year, mainly reflecting the impact of higher RPI inflation on our index-linked debt and slightly higher net debt.