UK water services giant Thames Water recently announced its investors have pledged to provide it with 750 million pounds. However, the largest water company in Britain warned that it would require further new equity in the coming years.
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Weighed down by billions in debt and facing increased pressure due to its environmental record and reputation, Thames Water urged investors to help in funding its financial turnaround.
UK ministers have been closely monitoring the situation at Thames Water, amid growing fears it could potentially require a government rescue should its shareholders refuse to stump up more investment. At present, the water services company serves approximately 15 million customers, which accounts for over a fifth of the UK’s population.
Chairman for Thames Water, Ian Marchant, commented in a company statement:
“The additional investment announced today is the largest equity support package ever seen in the UK water sector and underscores our shareholders’ commitment to delivering Thames’ turnaround.”
Alongside its announcement of the extra equity it has secured, Thames Water added that between 2025 and 2030 it will need further investment of around two and a half billion pounds to recover its position.
