Thames Water Utilities Limited Annual Results for the year to 31 March 2024

“The challenges we face are well documented, but our operational and financial performance for the last year show good progress, and these positive results provide the right foundations on which to build and improve.

“We’ve delivered year-on-year improvements in our key water metrics, with leakage at its lowest ever level, and we’re supporting more customers through our social tariffs. Revenue, EBITDA and operating cash flow all grew strongly, supporting a record £2 billion of investment in our infrastructure that will ultimately improve asset resilience, environmental performance, and customer service. Our teams should be immensely proud of what they’ve delivered during a difficult year and for maintaining focus on what matters most to our customers.

“We have set out an ambitious business plan for the next five years, and I believe that with consistent leadership and priorities, time and resources, and the appropriate regulatory determination, we will turn around this business and make it perform for all our customers, the environment and our wider stakeholders.”

Chris Weston, CEO of Thames Water

Overview of financial performance

• Underlying profit after tax of £140 million, an improvement of £272 million
• 10% growth in underlying revenue to £2.4 billion reflecting an inflation linked increase in our charges for water and wastewater services 
• Underlying EBITDA of £1.2 billion, up 21% reflecting higher revenue and operating cost discipline
• Record level of capital expenditure of £2.1 billion, up 18% as we continue to increase investment in our ageing assets and improve network resilience 
• Total liquidity of £2,456 million as at 31 March 2024

Operational performance and progress delivering our turnaround plan

• 18% reduction in lost-time injuries
• Significantly improved performance in the water quality compliance risk index, our regulatory measure of water quality, with a score of 1.43 from 10.96 in FY23
• 15% reduction in supply interruptions, after a change to the way we manage mains repairs
• Lowest ever annual average leakage level of 570.4ml/day, a year-on-year reduction of 7%
• Increase in pollutions to 350 (2022: 331), driven by a 40% increase in average rainfall. The number of serious pollutions decreased by 18% 
• Water and wastewater complaints down 29% and 19% respectively, although total complaints up 10% driven by customer billing complaints

Outlook

• As at 30 June 2024, our liquidity was £1.8 billion, sufficient to fund our operations for the next 11 months to the end of May 2025.
• Following the Draft determination and our response to Ofwat we will be engaging with potential investors and creditors to seek new equity and to extend our liquidity runway.  Any equity process is not expected to conclude until after the Final Determination.
• In the meantime, Thames Water will continue to invest to meet its regulatory and environmental obligations and to improve the operations of the business as we execute our Turnaround Plan.

Read Thames Water's full 2023-24 results here.