Thames Water says turnaround will take time as interim profits drop
Thames Water said on Tuesday that a turnaround of the business will take time, as it posted a drop in interim profit.
In the six months to the end of September, pre-tax profit fell 54% to £246.4m as the company spent a record £1bn on its network. Revenue grew 12% to £1.2bn and net debt jumped 7% to £14.7bn.
Thames Water said it had delivered improvements in several of its key operational priorities in the first half, and that its underlying financial performance had largely improved year-on-year. However, it conceded that its performance was "still not where it needs to be".
Co chief executives Cathryn Ross and Alastair Cochran said the company had submitted its business plan for 2025-30 to Ofwat as part of its PR24 price review and had its refocused turnaround plan approved by the board.
"These plans build on what we have achieved over the last two years, and will deliver a turnaround in performance and step change in investment in the areas that matter most to our customers," they said.
"Turning around Thames will take time. We simply cannot do everything that our customers and stakeholders wish to see at a pace and for a price that everyone would like.
"We will continue to make the tough choices required to deliver what matters most to our customers and the environment."