Thames Water has secured a further £750mln from shareholders as the debt-laden company races to avoid the possibility of being placed in temporary public ownership.
Investors are also likely to pump an extra £2.5bn over the 2025 to 2030 regulatory period, the company said, to further improve operational performance and financial resilience.
Thames said the further funding is subject to the satisfaction of certain conditions, including the preparation of a business plan “that underpins a more focused turnaround that delivers targeted performance improvements for customers, the environment and other stakeholders over the next three years and is supported by appropriate regulatory arrangements.”
In a statement, Cathryn Ross and Alastair Cochran, Thames Water's interim co-CEOs said: “The substantial equity support package announced today will underpin the delivery of a more focused turnaround plan.
"Our balance sheet remains robust and, while change will not happen overnight, we are confident we have the right strategy, team and support in place to deliver for our customers, communities and the environment in London and the Thames Valley."
Thames also unveiled results for the year to March 31, 2023.
It reported revenue that rose to £2.3bn from £2.2bn and posted a modest pre-tax profit of £1.8mln compared to a loss of £850.8mln the year prior.
Net debt climbed to £14.0bn from £12.9bn while the dividend paid to its parent company rose to £45.2mln from £37.1mln.