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Thames Water Utilities Limited - Half year results for the six months to 30 September 2024

Exterior image of Thames Water office

Chief Executive Officer, Chris Weston, said: “In the last six months we’ve made solid progress on the transformation and turnaround of Thames Water. 

“After recognition from Ofwat with an improved performance ranking, we have continued to improve operational and underlying financial performance, with leakage at an all-time low and investment remaining at high levels in the first half of the year. After record rainfall and groundwater levels in our region, pollutions and spills are unfortunately up; however, we’ve been increasing pipe relining and cleaning, and the landmark Thames Tideway Tunnel, now in its testing phase, is already reducing overflows into the Tidal River Thames.

“At the same time, we’ve reached key milestones in establishing a more stable financial platform, agreeing a liquidity extension transaction proposal and progressing our equity raise process. The next critical step is receiving an investable Final Determination which is fundamental to our future.”

Financial performance

  • 10% growth in underlying revenue2 to £1.3 billion, reflecting an inflation linked increase in our charges for water and wastewater services
  • Underlying EBITDA2 of £715 million, up 14% reflecting higher revenue and operating cost discipline
  • Underlying profit after tax of £187 million, an increase of £46 million
  • Statutory loss after tax of £190 million includes post tax exceptional costs of £427 million and income related to Bazalgette Tunnel Limited
  • Capital expenditure of £1.0 billion as we maintain high levels of investment in our ageing assets and to improve network resilience 
  • Underlying operating cash flow of £605 million, an increase of £26 million.

Financial resilience 

  • Committed liquidity of £1.5 billion3 as at 30 September 2024; STID proposal approved in November, supporting near-term liquidity by accessing reserved cash
  • Launched Liquidity Extension Proposal
    - Up to £3.0 billion new super senior facility, the first £1.5 billion of which is backstopped by creditors
    - Two-year extension of all debt maturities, deferring £3.2 billion of maturities currently due by January 2027
    - More than 75% of Class A creditors signed up to Transaction Support Agreement ahead of a convening hearing on 17 December 2024
  • Next phase of equity raise process launched
  • Julian Gething appointed as Chief Restructuring Officer 

Operational and environmental performance 

  • 23% reduction in lost-time injuries (HY25: 20: HY24: 26)
  • 19% reduction in total complaints (HY25: 31,600: HY24: 38,900)
  • 1.86 Compliance Risk Index  (HY24: 1.19)
  • 4% reduction in leakage (HY25: 536.5 Ml/d (annual average): HY24: 557.1 Ml/d)
  • 3 minutes 42 seconds in supply interruptions (HY24: 2 minutes 52 seconds)
  • Record rainfall leads to 40% increase in total pollutions (category 1-3) (HY25: 359: HY24: 257) 
  • Improvement to ‘average’ in Ofwat’s annual performance ranking 

Sustainability highlights

  • The Thames Tideway Tunnel and Lee Tunnel collectively captured 589 million litres of sewage in a single 24-hour period, as new super sewer enters testing phase
  • £67 million in total financial help for customers in vulnerable circumstances 

Key financials 

Table showing the results

Read Thames Water's half year results here.