Thames Water, the UK's largest water company, has reported a staggering £1.6bn annual loss for the 12 months to 31 March, a sharp decline from the previous year's profit of £154m, despite an 8.7% increase in revenues to £2.7bn. CEO Chris Weston warned that it would take at least a decade to turn the troubled utility around. The company is currently grappling with a £20bn debt pile and is actively seeking a rescue plan funded by its creditors to avert potential temporary nationalisation. The significant loss includes a £1.27bn provision against an unrecoverable loan from its parent company, £122m in fines, and substantial financing and advisory costs. Despite some operational improvements like reduced leaks and complaints, pollution incidents rose by over a third to 470, which Weston attributed partly to rainfall and high groundwater levels.
Thames Water boss warns of decade-long turnaround as losses hit £1.6bn
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TL;DR: Key points with love ❤️Thames Water, the UK's largest water company, has reported a staggering £1.6bn annual loss for the 12 months to 31 March, a sharp decline from the previous year's profit of £154m, despite an 8.7% increase in revenues to £2.7bn. CEO Chris Weston warned that it would take at least a decade to turn the troubled utility around. The company is currently grappling with a £20bn debt pile and is actively seeking a rescue plan funded by its creditors to avert potential temporary nationalisation. The significant loss includes a £1.27bn provision against an unrecoverable loan from its parent company, £122m in fines, and substantial financing and advisory costs. Despite some operational improvements like reduced leaks and complaints, pollution incidents rose by over a third to 470, which Weston attributed partly to rainfall and high groundwater levels.
Trending- 1 Previous year: Thames Water reported £154m profit
- 2 12 months to 31 March: Thames Water incurred £1.6bn annual loss
- 3 Past year: Thames Water scrambled to secure emergency funding
- 4 Currently: Thames Water is progressing with senior creditors’ plan to recapitalise the business
- £1.6bn annual loss for Thames Water
- Warning of a decade-long turnaround period
- Potential temporary nationalisation if rescue plan fails
- Increased pollution incidents by a third
- Company struggling under £20bn debt pile
- Need for recapitalisation transaction with creditors