Thames Water‘s financial stability is under scrutiny as auditors warn that the company could face a cash shortage by April if additional funding from shareholders is not secured.
The parent company, Kemble Water Holdings, revealed “material uncertainty” about its ability to continue as a going concern in its 2022-23 accounts.
PricewaterhouseCoopers raised concerns due to the absence of concrete plans to refinance a £190 million loan held by one of Thames Water’s subsidiaries
A Thames Water spokesperson said: “We are in a robust financial position and are extremely fortunate to have such supportive shareholders.
“Our shareholders have already invested £500 million of equity in 2023. In addition, they have agreed to provide a further £750 million in new equity funding across AMP7 [the water industry asset management plan period running from 2020 to 2025].
“This further funding is subject to 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.”
