Thames Water has said its shareholders have agreed to pump another £750 million in funding into the utility giant, but warned another £2.5 billion will be needed by 2030 as it struggles under a £14 billion debt mountain.
The supplier said the initial funding agreement to the end of March 2025 was a “major milestone”, although it admitted “significantly” greater support would be needed for its turnaround to be delivered.
It said the further support from shareholders for the 2025-2030 period “will depend on the finalisation of the business plan and the regulatory framework that will apply”.
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The funding agreement came as its annual results laid bare the financial woes at the group, with debts swelling to £14 billion from £12.9 billion the previous year and remaining in the red with underlying pre-tax losses of £82.6 million for the year to March 31.
Cathryn Ross and Alastair Cochran, interim co-chief executives of Thames Water said: “This announcement is a major milestone for Thames and all our stakeholders.
“The substantial equity support package announced today will underpin the delivery of a more focused turnaround plan that builds on the foundations that have been put in place over the last two years.”
