Beleaguered water company raises £750m in fundraising

Sarah Bentley

Embattled Thames Water has secured an extra £750m in equity funding from its shareholders.

The firm, which is £14bn in debt, is struggling to avoid nationalisation amid growing concerns about its ability to survive as a business.

Thames Water is the largest water company in the UK and has customers in parts of Wiltshire and Gloucestershire.

In an attempt to shore up its balance sheet the firm has been making attempts to raise additional cash over the last few months, having previously raised £500m in March.

Last week, the water regulator Ofwat said the company needed £1.5bn to survive.

Thames Water has been under increasing pressure following the departure of chief executive Sarah Bentley.

Cathryn Ross and Alastair Cochran, interim co-chief executives, announced the result of the fundraising in a statement to the Stock Exchange.

They said: “Since June 2022, we have engaged constructively with shareholders, working towards a common goal of developing a long term, comprehensive, financeable and enduring business plan for the company to improve operational performance and financial resilience for the benefit of our customers and the environment.

“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 and focuses expenditure on a smaller number of initiatives, which will deliver material and sustainable improvements in key performance metrics over the next three years.”


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