Thames Water interim earnings rise, warns of 'material uncertainty'
By Iain Gilbert
Date: Wednesday 03 Dec 2025
(Sharecast News) - Utility provider Thames Water remained locked in rescue talks with creditors on Wednesday, even as it reported a sharp rise in interim revenue and profits.
Thames Water said profits hit £414m in the six months ended 30 September, with underlying earnings climbing to £1.2bn from £715.1m a year earlier and revenues rising 42% to nearly £2bn, driven by a 31% increase in bills earlier this year, which also funded £1.3bn of capital investment to tackle leaks, reduce sewage spills and improve water quality.
Customer complaints, however, jumped 75% to 55,158, reflecting the impact of higher charges, as the group, which serves around 16m customers, remains burdened by £17.5bn of debt and warned of "material uncertainty" over its future as rescue negotiations continue.
Thames Water confirmed it had spent £57m in the half-year on advisers for the restructuring process, including bankers, lawyers and PR consultants. Talks were said to be ongoing with a consortium of creditors led by London & Valley Water, whose proposal involves fresh capital and debt write-offs in exchange for more flexible performance targets.
It also described discussions with government and regulators as "positive" but stressed no deal had been secured as of yet. Creditors including Aberdeen, Elliott Management and Silverpoint Capital are seen as the last realistic option to avoid special administration, after a previous rescue plan with KKR collapsed in May.
Chris Weston, chief executive of Thames Water, said: "We continue to work closely with stakeholders to secure a market-led solution that we believe is in the best interests of our customers and the environment.
"This in turn will allow the transformation of Thames to continue, a programme that will take at least a decade to complete and will restore the infrastructure and operations of the company."
Reporting by Iain Gilbert at Sharecast.com
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