Thames Water returns to profit after raising bills

Thames Water has returned to full-year profits after increasing customers’ bills by 40% last year.

Britain’s largest water company reported after-tax income of £113 million for the 12 months to the end of March; This is down from an after-tax loss of £1.51bn the previous year.

But the firm’s net debt also increased from £16.8bn to £18.5bn, and it said the firm “continues to fund the business through debt and internally generated cash flows”.

Chief executive Chris Weston said: “The progress we have made in turning the company around means we are now performing better.”

The publication of Thames Water’s results comes after the government rejected a proposed rescue deal for the business in June.

Under the terms of the deal, Thames’ lenders were seeking exemptions from future pollution fines in exchange for wiping out £9.4bn of the debt pile and investing new money.

Thames Water said on Wednesday it had sufficient debt funding to continue the business “until Q4 2026”.