As it works to alleviate lingering concerns over its financial health, Thames Water, the largest water utility in the United Kingdom, is moving forward with a new turnaround plan to enhance service over three years. Additionally, the company has said it has a high amount of liquidity.
The government prepared a rescue plan earlier this year in response to concerns that Thames Water may collapse under the weight of its 14 billion pounds of debt. This was done before the firm’s financial investors agreed to put extra equity in the company in July.
Thames Water, which provides water to 15 million consumers, which accounts for more than a fifth of the population of the United Kingdom, announced on Tuesday that it has overall liquidity of 3.5 billion pounds ($4.42 billion), in addition to other financial resources, and that its shareholders backed its investment plans.
“Our shareholders support this much needed investment, underscoring their commitment to delivering Thames’ turnaround,” the co-CEOs Cathryn Ross and Alastair Cochran said in a statement. “This investment is much needed.”
Over the six months that ended in September, the firm reported that its sales increased by 11% to 1.2 billion pounds, while its underlying core earnings (EBITDA) increased by 22% to 627 million pounds.
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