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Thames Water secures funding to operate until May 2025

Britain's largest water supplier, announced it has secured £1.8 billion to sustain operations until May 2025

Thames Water, Britain’s largest water supplier, has secured £1.8 billion in funding, ensuring its operations until May 2025 while it continues efforts to raise new equity for long term survival.

The company believes it will be better positioned to engage with potential investors and creditors after the water regulator, Ofwat, outlined the framework for the next five years.

Thames Water Chief Executive Officer Chris Weston highlighted the company’s progress over the past year, citing improvements in key water metrics, including the lowest ever leakage levels, increased revenue, EBITDA and operating cash flow.

These developments have supported a record £2 billion investment in infrastructure to enhance asset resilience, environmental performance and customer service, the company said.

Financially, Thames Water reported an underlying profit after tax of £140 million, reflecting an improvement of £272 million.

The company saw a 10% growth in underlying revenue to £2.4 billion and a 21% increase in underlying EBITDA, reaching £1.2 billion.

Capital expenditure also hit a record £2.1 billion, an 18% increase, aimed at upgrading ageing assets and improving network resilience.

As of 31st March 2024, Thames Water’s total liquidity stood at £2,456 million.

Looking ahead, Thames Water’s liquidity as of 30th June 2024 is £1.8 billion, sufficient to fund operations until the end of May 2025.

Following the draft determination and its response to Ofwat, the company plans to engage with potential investors and creditors to seek new equity and extend its liquidity runway.

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