Thames Water Returns to Profit After 40% Bill Increase

Thames Water returned to profit with a £113m post-tax gain after a 40% bill increase, despite net debt rising to £18.5bn. The government rejected a rescue deal involving debt write-off and pollution fine leniency.

Thames Water Posts Full-Year Profit Following Bill Hike

Thames Water has reported a return to full-year profitability after increasing its customers' bills by 40% last year.

The UK's largest water company announced a post-tax profit of £113 million for the 12 months ending in March, reversing a £1.51 billion post-tax loss recorded the previous year.

Despite the profit, the company's net debt rose to £18.5 billion from £16.8 billion, as Thames Water stated it "continued to fund the business through... debt and internally generated cash flows."

CEO Comments on Company Performance

Chief Executive Chris Weston commented on the company's progress, stating:

"The progress we have made in turning the company around has meant we are now performing better."

Government Rejection of Rescue Deal

The announcement of Thames Water's financial results follows the government's rejection in June of a proposed rescue deal for the company.

The proposed agreement involved Thames Water's lenders seeking relief from future pollution fines in exchange for writing off £9.4 billion of the company's debt and making new investments.