Thames Water hails profit but debt nears £20 billion

Thames Water has swung to an annual profit – but seen its debt mountain balloon to nearly £20 billion.

The UK’s largest water supplier reported pre-tax profits of £226.4 million for the year to March 31.

The figures represented a marked improvement from mammoth losses of £1.65 billion the previous year.

However, full-year results showed debts at the supplier – which has around 16 million customers across London and the South East – swelled to £19.77 billion.

The figure was up from £17.73 billion across the previous year.

Creditors are battling to secure a rescue deal for Thames Water after Environment Secretary Emma Reynolds warned she didn’t believe the plan for the stricken utility provider goes far enough to protect customers or the environment.

It came as a last-minute blow for hopes of a deal to stave off temporary renationalisation, with industry regulator Ofwat said to have been close to accepting the offer from bidding consortium London & Valley Water, which has proposed injecting £10 billion into Thames Water in return for any new fines over sewage leaks being waived for four years.

Thames Water said last month it had enough funding until September.

Chris Weston, chief executive, said: “Thames Water is a very different business from what it was two years ago. 

“While we have a lot more to achieve, the progress we have made in turning the company around has meant we are now performing better.

“We are also working with our creditors, regulators and the Government to complete our recapitalisation.”

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